Mar Vista Investment Partners, LLC, an investment management company, released the “Mar Vista Focus strategy” first quarter 2024 investor letter. A copy of the letter can be downloaded here. The S&P 500 index had the best first-quarter performance since 2019—enthusiasm over AI, robust corporate earnings, and anticipation of rate cuts fueling the rise in stock prices. The strategy returned +5.53% net-of-fees in the first quarter compared to +11.41% and +10.56% returns of the Russell 1000 Growth Index and the S&P 500 indexes. Kindly check the top 5 stocks of the strategy to know its best picks in 2024.
Mar Vista Focus strategy highlighted stocks like TransDigm Group Incorporated (NYSE:TDG) in the first quarter 2024 investor letter. Headquartered in Cleveland, Ohio, TransDigm Group Incorporated (NYSE:TDG) is an aircraft components manufacturer and supplier. The one-month return of TransDigm Group Incorporated (NYSE:TDG) was -1.37%, and its shares gained 58.69% of their value over the last 52 weeks. On June 14, 2024, TransDigm Group Incorporated (NYSE:TDG) stock closed at $1,294.76 per share with a market capitalization of $72.453 billion.
Mar Vista Focus strategy stated the following regarding TransDigm Group Incorporated (NYSE:TDG) in its first quarter 2024 investor letter:
“TransDigm Group Incorporated (NYSE:TDG) delivered another impressive quarter, exceeding analysts’ expectations for both earnings and profitability. Its gross and EBITDA margins widened significantly, driven by strong performances in commercial aerospace and defense. Revenue growth in commercial aerospace aftermarket parts (+27%) and new defense orders were key contributors to this outperformance. Management responded by raising the full-year 2024 forecasts for revenue and profitability.
Continued growth in both defense and commercial aftermarket should be fueled by recovering passenger traffic, higher aircraft utilization, and a strong bookings backlog. With domestic travel exceeding pre-pandemic levels and international travel nearing full recovery, TransDigm appears well-positioned for continuous growth. This, combined with its efficient operations, should drive long-term stock price appreciation.”
An aerial view of an aircraft factory, showing a flurry of activity on the factory floor.
TransDigm Group Incorporated (NYSE:TDG) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 78 hedge fund portfolios held TransDigm Group Incorporated (NYSE:TDG) at the end of the first quarter which was 65 in the previous quarter. While we acknowledge the potential of TransDigm Group Incorporated (NYSE:TDG) 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 TransDigm Group Incorporated (NYSE:TDG) and shared Vulcan Value Partners’ views on the company. In addition, please check out our hedge fund investor letters Q1 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.
