Investment management company Vulcan Value Partners recently released its fourth-quarter 2024 investor letter. A copy of the letter can be downloaded here. In 2024, the US economy was stronger than expected; the large-cap stocks led the robust U.S. equities markets. Although it is still excessively high, inflation did decrease throughout the course of the year. The largest market cap U.S. Companies performed better than the whole market. Lastly, U.S. stocks outperformed the majority of equities in non-U.S. markets. During Q4 and 2024, Focus and Focus Plus were the best performing strategies while Small Cap was the worst performing. However, all strategies had positive returns for the year. In the quarter, the Large Cap Composite returned -0.1% net of fees and expenses, the Small Cap Composite returned -7.3% net, the Focus Composite returned 6.3% net, the Focus Plus composite returned 7.4% and the All-Cap Composite returned -2.5% net. For more information on the fund’s best picks in 2024, please check its top five holdings.
Vulcan Value Partners highlighted stocks like Qorvo, Inc. (NASDAQ:QRVO) in its Q4 2024 investor letter. Qorvo, Inc. (NASDAQ:QRVO) develops and commercializes technologies and products for wireless, wired, and power markets. The one-month return of Qorvo, Inc. (NASDAQ:QRVO) was 18.86%, and its shares lost 20.23% of their value over the last 52 weeks. On January 17, 2025, Qorvo, Inc. (NASDAQ:QRVO) stock closed at $84.21 per share with a market capitalization of $7.96 billion.
Vulcan Value Partners stated the following regarding Qorvo, Inc. (NASDAQ:QRVO) in its Q4 2024 investor letter:
“There were no material contributors to performance. There were three material detractors: Sdiptech AB, Qorvo Inc., and Elevance Health Inc. Qorvo, Inc. (NASDAQ:QRVO) is a leader in radio frequency (RF) systems and power management solutions primarily for mobile phones, wireless infrastructure, aerospace/defense, internet of things, and various other applications. Qorvo lowered near-term guidance largely due to accelerated weakness within its Chinese Android business as customers shifted from mid-tier phones, a market in which Qorvo participates, to entry level phones, a market where Qorvo does not participate. Qorvo continues to execute well in its other mobile markets including Apple and Android’s premium and flagship tiers. Importantly, management’s long-term revenue and margin targets, and confidence in achieving those targets, remain unchanged. We added to our position during the quarter.”
A close up of a highly advanced mobile device with the company’s branding visible.
Qorvo, Inc. (NASDAQ:QRVO) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 40 hedge fund portfolios held Qorvo, Inc. (NASDAQ:QRVO) at the end of the third quarter which was 37 in the previous quarter. Qorvo, Inc. (NASDAQ:QRVO) generated revenue of $1.047 million in the third quarter representing an 18% increase sequentially. While we acknowledge the potential of Qorvo, Inc. (NASDAQ:QRVO) 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 Qorvo, Inc. (NASDAQ:QRVO) and shared the list of AI and semiconductor stocks that fund managers are buying and selling according to Bank of America’s data. Vulcan Value Partners purchased a position in Qorvo, Inc. (NASDAQ:QRVO) during Q2 2024. In addition, please check out our hedge fund investor letters Q4 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.