Montaka Global Investments, an investment management company, released its fourth quarter 2024 investor letter. A copy of the letter can be downloaded here. All of the companies in Motaka’s portfolio have significant and growing competitive advantages, which aligns with the firm’s investment strategy. All of them are situated within advantageous tailwinds and structural changes. Furthermore, they continue to be substantially undervalued despite recent great stock price performance. Montaka’s investee companies account for 75% of Montaka’s total portfolio and yearly portfolio turnover is roughly 25% (representing ~4 year holding period, on average). In addition, please check the fund’s top five holdings to know its best picks in 2024.
Montaka Global Investments highlighted stocks like MongoDB, Inc. (NASDAQ:MDB), in the fourth quarter 2024 investor letter. MongoDB, Inc. (NASDAQ:MDB) is a global provider of general-purpose database platform. The one-month return of MongoDB, Inc. (NASDAQ:MDB) was 7.06%, and its shares lost 34.87% of their value over the last 52 weeks. On January 22, 2024, MongoDB, Inc. (NASDAQ:MDB) stock closed at $260.70 per share with a market capitalization of $20.891 billion.
Montaka Global Investments stated the following regarding MongoDB, Inc. (NASDAQ:MDB) in its Q4 2024 investor letter:
“While the bulk of MongoDB, Inc.’s (NASDAQ:MDB) portfolio exposures continued to remain relatively stable over the December quarter, we did undertake some modest hands-on portfolio management in the tail-end of the portfolio.
We exited three of Montaka’s smallest portfolio names. While we see long-term upside in all of these names, we see more upside elsewhere. Hence, we reallocated these proceeds to (i) scale up Montaka’s investment in Alphabet on increased probabilities that its advantages in Google Search are strengthening (not to mention the group’s numerous growth options increasing in probability – from YouTube, to Waymo, and even quantum computing); and (ii) to establish an initial ‘outlier’ position in database software provider, MongoDB (MDB).
We view outliers as ‘option-like’ in that their upside potential is very large, but the probability is far less certain. On this basis, we deliberately restrict Montaka’s aggregate portfolio allocation to outliers – which currently stands at less than 7%. The remaining 93% of Montaka’s portfolio is allocated to businesses we classify as ‘compounders’.
As a database provider for large production-ready applications, MDB has suffered of late because software developers have overwhelmingly focused on small, experimental AI-based ‘proof of concepts’ rather than production deployments. We expect this cycle to turn in 2025 and beyond, and it’s possible (though not certain) that demand for MDB accelerates materially…” (Click here to read the full text)
A software engineer hosting a remote video training session on a multi-cloud database-as-a-service solution.
MongoDB, Inc. (NASDAQ:MDB) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 49 hedge fund portfolios held MongoDB, Inc. (NASDAQ:MDB) at the end of the third quarter which was 54 in the previous quarter. While we acknowledge the potential of MongoDB, Inc. (NASDAQ:MDB) 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 MongoDB, Inc. (NASDAQ:MDB) and shared the list of bests software stocks to buy according to analysts. In addition, please check out our hedge fund investor letters Q3 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.