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 Capri Holdings Limited (NYSE:CPRI) in the second quarter 2024 investor letter. Headquartered in London, the United Kingdom, Capri Holdings Limited (NYSE:CPRI) is a global fashion luxury group. One-month return of Capri Holdings Limited (NYSE:CPRI) was -0.57%, and its shares lost 6.51% of their value over the last 52 weeks. On August 2, 2024, Capri Holdings Limited (NYSE:CPRI) stock closed at $33.20 per share with a market capitalization of $3.91 billion.
Conventum – Alluvium Global Fund stated the following regarding Capri Holdings Limited (NYSE:CPRI) in its Q2 2024 investor letter:
“There was no good news for Capri Holdings Limited (NYSE:CPRI) shareholders. Capri owns the Michael Kors, Jimmy Choo and Versace brands. In April, the Fair Trade Commission sued to block the takeover by Tapestry (which owns the Kate Spade, Coach and Stuart Weitzman brands). The Court hearing is set for September 9th. Then in late May management released its full year results and it wasn’t pretty – both on the revenue and margin side. Given the pending takeover, there was little elaboration (no conference call for instance) and no guidance nor outlook was provided. The share price was down 27.0% over the quarter. This makes our buying of the shares as recently as last quarter look decidedly dumb. We wrote last quarter that Capri was an acceptable investment on its own merits at its prevailing price. But the results show that we misjudged the revenue and margin resiliency of the business. And with the pending deal being at such a premium to the trading level (and probably supporting the price to some extent), the reaction to those poor results was perhaps more extreme than otherwise. We have made adjustments (principally reducing our margin assumptions) which resulted in a reduction to our maintainable earnings estimates and hence our valuation. Both fell in line with the share price fall, and we have maintained our position (3.2% of the Fund).”
A glamorous woman with a leather handbag enjoying a shopping experience in an upscale boutique.
Capri Holdings Limited (NYSE:CPRI) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 55 hedge fund portfolios held Capri Holdings Limited (NYSE:CPRI) at the end of the first quarter which was 58 in the previous quarter. While we acknowledge the potential of Capri Holdings Limited (NYSE:CPRI) 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 Capri Holdings Limited (NYSE:CPRI) and shared the list of stocks receiving a massive vote of approval from Wall Street analysts. In addition, please check out our hedge fund investor letters Q2 2024 page for more investor letters from hedge funds and other leading investors.
READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks.
Disclosure: None. This article is originally published at Insider Monkey.