Mar Vista Investment Partners, LLC, an investment management company, released the “Strategic Growth Strategy” second quarter 2024 investor letter. A copy of the letter can be downloaded here. The S&P 500 Index recorded a 15.29% gain in the first half of 2024, marking one of its best performances since the late 1990s tech bubble. However, it was still slightly below the remarkable start of 2023. In the second quarter, the strategy returned +2.36% net-of-fees compared to +8.34% and +4.28% returns for The Russell 1000 Growth Index and the S&P 500 Index. Following a robust performance in the first six months, it appears that stocks are poised to enter the year’s second half with strong momentum. The picture is still favorable because of robust corporate profitability, decreasing inflation, and high enterprise spending. Kindly check the top 5 stocks of the strategy to know its best picks in 2024.
Mar Vista Strategic Growth Strategy highlighted stocks like Starbucks Corporation (NASDAQ:SBUX) in the second quarter 2024 investor letter. Starbucks Corporation (NASDAQ:SBUX) is a global coffee brand that roasts, markets, and sells coffee. The one-month return of Starbucks Corporation (NASDAQ:SBUX) was 25.93%, and its shares lost 3.55% of their value over the last 52 weeks. On August 26, 2024, Starbucks Corporation (NASDAQ:SBUX) stock closed at $95.63 per share with a market capitalization of $108.368 billion.
Mar Vista Strategic Growth Strategy stated the following regarding Starbucks Corporation (NASDAQ:SBUX) in its Q2 2024 investor letter:
“Our decision to divest from Starbucks Corporation (NASDAQ:SBUX) followed their latest earnings report, which highlighted concerning business trends. The primary issue was sluggish demand, with comparable store sales dropping in their important U.S. and Chinese markets. American consumers, grappling with inflation, are reducing non-essential expenses, including regular coffee shop visits. Meanwhile, China’s economic rebound, vital for Starbucks’ growth, has been underwhelming. These challenges led Starbucks to downgrade its annual financial projections, raising doubts about leadership’s capacity to address immediate headwinds. Faced with lowered financial expectations, persistent demand challenges, and a deteriorating economic landscape, we opted to liquidate our investment.”
A barista pouring freshly brewed coffee from an espresso machine to a cup in a bustling cafe.
Starbucks Corporation (NASDAQ:SBUX) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 70 hedge fund portfolios held Starbucks Corporation (NASDAQ:SBUX) at the end of the second quarter which was 69 in the previous quarter. Starbucks Corporation’s (NASDAQ:SBUX) revenue in the third quarter of fiscal year 2024 was $9.1 billion, reflecting a 1% increase year-over-year and a 6% increase over the previous quarter. While we acknowledge the potential of Starbucks Corporation (NASDAQ:SBUX) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
In another article, we discussed Starbucks Corporation (NASDAQ:SBUX) and shared the list of stocks that have Jim Cramer’s attention. In addition, please check out our hedge fund investor letters Q2 2024 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
