Investment management company Vulcan Value Partners recently released its fourth-quarter 2024 investor letter. A copy of the letter can be downloaded here. In 2024, the US economy was stronger than expected; the large-cap stocks led the robust U.S. equities markets. Although it is still excessively high, inflation did decrease throughout the course of the year. The largest market cap U.S. Companies performed better than the whole market. Lastly, U.S. stocks outperformed the majority of equities in non-U.S. markets. During Q4 and 2024, Focus and Focus Plus were the best performing strategies while Small Cap was the worst performing. However, all strategies had positive returns for the year. In the quarter, the Large Cap Composite returned -0.1% net of fees and expenses, the Small Cap Composite returned -7.3% net, the Focus Composite returned 6.3% net, the Focus Plus composite returned 7.4% and the All-Cap Composite returned -2.5% net. For more information on the fund’s best picks in 2024, please check its top five holdings.
Vulcan Value Partners highlighted stocks like InterContinental Hotels Group PLC (NYSE:IHG) in the fourth quarter 2024 investor letter. InterContinental Hotels Group PLC (NYSE:IHG) is a hospitality company manages, franchises, and leases hotels. The one-month return of InterContinental Hotels Group PLC (NYSE:IHG) was 0.75%, and its shares gained 32.82% of their value over the last 52 weeks. On January 17, 2025, InterContinental Hotels Group PLC (NYSE:IHG) stock closed at $126.82 per share with a market capitalization of $19.994 billion.
Vulcan Value Partners stated the following regarding InterContinental Hotels Group PLC (NYSE:IHG) in its Q4 2024 investor letter:
“During the quarter, we sold KKR & Co. and InterContinental Hotels Group PLC (NYSE:IHG). We owned IHG for a much shorter period of time, and it was a great investment for us as well. As with KKR, IHG reached our estimate of fair value, and we followed our discipline and reallocated capital into more discounted companies with attractive margins of safety.”
A modern hotel suite showing off the latest in hotel accommodations.
InterContinental Hotels Group PLC (NYSE:IHG) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 11 hedge fund portfolios held InterContinental Hotels Group PLC (NYSE:IHG) at the end of the third quarter which was 16 in the previous quarter. While we acknowledge the potential of InterContinental Hotels Group PLC (NYSE:IHG) 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 InterContinental Hotels Group PLC (NYSE:IHG) and shared list of stocks investors should monitor closely according to Jim Cramer. In addition, please check out our hedge fund investor letters Q4 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.