O’keefe Stevens Advisory, an investment advisory firm, released its third-quarter 2023 investor letter. A copy of the same can be downloaded here. Although the major indices have posted positive gains for the year, this performance has been largely driven by a select group of stocks known as the “magnificent seven.” At the end of Q3, the fund’s top 5 holdings comprised approximately 27% of assets, a decrease from 35% at the end of Q2. In addition, please check the fund’s top five holdings to know its best picks in 2023.
O’keefe Stevens Advisory highlighted stocks like NVIDIA Corporation (NASDAQ:NVDA) in the third quarter 2023 investor letter. Headquartered in Santa Clara, California, NVIDIA Corporation (NASDAQ:NVDA) provides computer graphics processors, chipsets, and related multimedia software. On November 17, 2023, NVIDIA Corporation (NASDAQ:NVDA) stock closed at $492.98 per share. One-month return of NVIDIA Corporation (NASDAQ:NVDA) was 14.71%, and its shares gained 221.85% of their value over the last 52 weeks. NVIDIA Corporation (NASDAQ:NVDA) has a market capitalization of $1.218 trillion.
O’keefe Stevens Advisory made the following comment about NVIDIA Corporation (NASDAQ:NVDA) in its Q3 2023 investor letter:
“This quarter, we actively reduced our position in our favorite company, NVIDIA Corporation (NASDAQ:NVDA). Over the past several years, I have consistently noted the concentration of the top 5 holdings in our portfolio, with NVDA comprising 26% of the last quarter’s 40%. The business, management, and outlook are nothing short of excellent. The business has a dominant market share in a rapidly growing market with competition seemingly years behind, though, fighting hard to gain share. Gross margin is expected to exceed 70% in 2024 and expand in 2025, reflecting the premium customers pay for their advanced technology. Revenue growth of 30%+ on a $50B base and a return on equity over 50%. If this isn’t the best business in the world currently, certainly it is in the top 5.
Jensen is the reason we held onto the stock despite our unease about the valuation. Jensen came to the U.S. from Thailand and was sent to a boarding school in rural Kentucky for troubled youth by his aunt and uncle, who mistook it for a prep school. When buying an ownership stake in the business, we must ask ourselves who we partner with. Are they honest? Capable? Aligned?
Honest: Listening to Jensen (while promotional) is like a breadth of fresh air. He tells you how it is. When the business looked like it was headed for failure in 2009, Jensen reduced his salary to $1….” (Click here to read the full text)
Photo by Christian Wiediger on Unsplash
NVIDIA Corporation (NASDAQ:NVDA) is in 17th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 175 hedge fund portfolios held NVIDIA Corporation (NASDAQ:NVDA) at the end of second quarter which was 132 in the previous quarter.
We discussed NVIDIA Corporation (NASDAQ:NVDA) in another article and shared stock picks of Ken Griffin and his hedge fund Citadel Investment Group. In addition, please check out our hedge fund investor letters Q3 2023 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.
