Rowan Street Capital, an investment management company, released its second-quarter 2024 investor letter. A copy of the letter can be downloaded here. The fund generated a +26.2% (net of fees) return in the first half of the year surpassing the +15.3% return for the S&P 500 index in the same period. The fund has generated a net return of +43.2% over the past 12 months, ending June 30. This figure outperforms the S&P 500’s +24.6% return. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.
Rowan Street Capital highlighted stocks like Meta Platforms, Inc. (NASDAQ:META), in the second quarter 2024 investor letter. Meta Platforms, Inc. (NASDAQ:META) is a technology company that develops products to connect people. The one-month return of Meta Platforms, Inc. (NASDAQ:META) was -3.04%, and its shares gained 62.66% of their value over the last 52 weeks. On September 6, 2024, Meta Platforms, Inc. (NASDAQ:META) stock closed at $500.27 per share with a market capitalization of $1.266 trillion.
Rowan Street Capital stated the following regarding Meta Platforms, Inc. (NASDAQ:META) in its Q2 2024 investor letter:
“We are pleased to report that Meta Platforms, Inc. (NASDAQ:META), our largest position in the fund, has delivered a remarkable performance, +450% since our November 2022 note. Our investment in Meta dates back to 2018, with an average cost basis of approximately $172 per share. Today, the stock trades around $535, reflecting a 3x return over the six-year holding period, equating to a 20% annualized return.
We would like to remind you that achieving these types of returns is never a straight path. From time to time, we might experience volatility — that’s simply part of the investment journey. In fact, wealth creation and volatility go hand in hand. There’s no escaping it; it’s the “price of admission” the market demands. If you take a look at the chart below, you’ll notice the drawdowns META stock has faced over the years, with 2022 standing out as a particularly challenging period, where the stock saw a 75% drop…” (Click here to read the full text)
Photo by Timothy Hales Bennett on Unsplash
Meta Platforms, Inc. (NASDAQ:META) is in third position on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 219 hedge fund portfolios held Meta Platforms, Inc. (NASDAQ:META) at the end of the second quarter which was 246 in the previous quarter. In Q2 of 2024, Meta Platforms, Inc. (NASDAQ:META) reported $39.1 billion in revenue, a 22% increase compared to Q2 2023.While we acknowledge the potential of Meta Platforms, Inc. (NASDAQ:META) 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 Meta Platforms, Inc. (NASDAQ:META) and shared the list of best magic formula stocks for the rest of 2024. 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.
