Here’s Why Rogue Funds Sold its Advanced Micro Devices (AMD) Puts

Rogue Funds, an investment management company, released its third quarter 2024 investor letter. A copy of the letter can be downloaded here. The fund returned -3.03% net of fees in the quarter. The fund faced a slight decline in the value of the portfolio, which was quite disappointing. Two of the fund’s core positions fell by more than 50% since the firm acquired them, mainly due to significant changes in their investment theses. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.

Rogue Funds highlighted stocks like Advanced Micro Devices, Inc. (NASDAQ:AMD) in the third quarter 2024 investor letter. Advanced Micro Devices, Inc. (NASDAQ:AMD) is a semiconductor company that operates through Data Center, Client, Gaming, and Embedded segments. The one-month return of Advanced Micro Devices, Inc. (NASDAQ:AMD) was -12.96%, and its shares lost 12.95% of their value over the last 52 weeks. On January 2, 2025, Advanced Micro Devices, Inc. (NASDAQ:AMD) stock closed at $120.63 per share with a market capitalization of $195.76 billion.

Rogue Funds stated the following regarding Advanced Micro Devices, Inc. (NASDAQ:AMD) in its Q3 2024 investor letter:

“We sold our Advanced Micro Devices, Inc. (NASDAQ:AMD) puts for a sold profit after the Japan Carry Trade caused volatility to spike considerably and allowed for a significant increase in the value of our put options. I felt that was an ideal time to capture these profits which has turned out to be a good choice in hindsight.”

AMD (AMD): Competing with Giants and Facing Market Realities

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Advanced Micro Devices, Inc. (NASDAQ:AMD) is on 19th position in our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 107 hedge fund portfolios held Advanced Micro Devices, Inc. (NASDAQ:AMD) at the end of the third quarter which was 108 in the previous quarter. While we acknowledge the potential of Advanced Micro Devices, Inc. (NASDAQ:AMD) 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 Advanced Micro Devices, Inc. (NASDAQ:AMD) and shared AI news investors probably missed. In addition, please check out our hedge fund investor letters Q3 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.