Alluvium Asset Management, an asset management company, released its “Conventum – Alluvium Global Fund” second-quarter 2024 investor letter. A copy of the same can be downloaded here. The Fund retreated by 2.3%, 3.0%, and 5.3% in EUR, USD, and AUD respectively, in the quarter. Excitement over AI continues, and some are drawing comparisons between the current environment and the late 1990s dot-com bubble. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Conventum – Alluvium Global Fund highlighted stocks like AutoNation, Inc. (NYSE:AN), in the second quarter 2024 investor letter. AutoNation, Inc. (NYSE:AN) is a US-based automotive retailer. One-month return of AutoNation, Inc. (NYSE:AN) was 8.78%, and its shares gained 9.45% of their value over the last 52 weeks. On August 2, 2024, AutoNation, Inc. (NYSE:AN) stock closed at $170.74 per share with a market capitalization of $6.784 billion.
Conventum – Alluvium Global Fund stated the following regarding AutoNation, Inc. (NYSE:AN) in its Q2 2024 investor letter:
“AutoNation, Inc. (NYSE:AN) (down 3.7%) operates around 350 dealer franchises across the US, as well as collision centres and used vehicle stores. When compared to Group 1, it sells more units at a slightly higher price and margin, and derives around 50% more revenue. But its strategy is different, with nationwide branding and centralised operations. Although we prefer the Group 1 model, the economics of Autonation look attractive to us. And by introducing this into the portfolio we could thereby invest more than 5% of assets in this sector without necessitating the sale of other attractive large positions. And so after selling a little Group 1 and buying Autonation we ended the quarter with 4.1% and 1.9% positions respectively.”
A customer smiling delightedly after driving away in their new car from the automotive retail shop.
AutoNation, Inc. (NYSE:AN) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 37 hedge fund portfolios held AutoNation, Inc. (NYSE:AN) at the end of the first quarter which was 34 in the previous quarter. In the second quarter, AutoNation, Inc. (NYSE:AN) reported $6.48 million in revenues, nearly same as the first quarter. While we acknowledge the potential of AutoNation, Inc. (NYSE:AN) 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 AutoNation, Inc. (NYSE:AN) and shared Bonhoeffer Capital Management’s views on the company in the previous quarter. 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.
