Argosy Investors, an investment management company, released its first-quarter 2024 investor letter. A copy of the same can be downloaded here. The fund ended the first quarter with 46.4% of the portfolio in cash and short-term government bonds and year-to-date, the S&P 500 returned 10.6%. The firm stays long-term oriented, opting to invest less aggressively when possibilities are few and to invest more aggressively when opportunities are more easily identifiable in the market. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Argosy Investors highlighted stocks like Diageo plc (NYSE:DEO), in the first quarter 2024 investor letter. Diageo plc (NYSE:DEO) engages in the production and distribution of alcoholic beverages. The one-month return of Diageo plc (NYSE:DEO) was -7.14%, and its shares lost 27.52% of their value over the last 52 weeks. On June 28, 2024, Diageo plc (NYSE:DEO) stock closed at $126.08 per share with a market capitalization of $70.144 billion.
Argosy Investors stated the following regarding Diageo plc (NYSE:DEO) in its first quarter 2024 investor letter:
“Diageo plc (NYSE:DEO) was likewise added to the portfolio this quarter. We don’t believe we have any special insight into this well-known spirits maker, but believe DEO is capable of providing long-term attractive returns and became priced at a level where we felt we were taking less risk in the short term as well. Owner and marketer of the Johnnie Walker Scotch, Tanqueray gin, Smirnoff vodka, Guinness beer, and Baileys liqueur brands, plus a stable of emerging brands, Diageo is a fixture any time alcohol is being served. We believe we’re paying a high-teens multiple of quite stable and growing earnings, and benefit from a healthy 3% dividend in the interim. We won’t wow anyone with our analysis on this one, but when everyone else is rushing to buy Nvidia, our exposure to alcohol should help with any hangovers in the rest of the market.”
A close-up of bottles of whisky and other alcoholic beverages from a winery.
Diageo plc (NYSE:DEO) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 30 hedge fund portfolios held Diageo plc (NYSE:DEO) at the end of the first quarter which was 28 in the previous quarter. While we acknowledge the potential of Diageo plc (NYSE:DEO) 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.
We discussed Diageo plc (NYSE:DEO) in another article and shared the list of best alcohol stocks to buy. 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.
