Mar Vista Investment Partners, LLC, an investment management company, released the “Mar Vista Global Quality Strategy” fourth quarter 2024 investor letter. A copy of the letter can be downloaded here. As investors welcomed reduced interest rates and inflation in developed economies, the global stock market rose in 2024. The MSCI World Net Index increased 18.7% for the year, finishing an incredible two-year run with a 47% total return and its second straight annual gain above 15%. In the fourth quarter, the strategy returned -3.31% net-of-fees compared to -0.16% and -0.99% returns for the MSCI World Net Index and the MSCI All Country World Net Index, respectively. In addition, please check the fund’s top five holdings to know its best picks in 2024.
In its fourth quarter 2024 investor letter, Mar Vista Global Quality Strategy emphasized stocks such as The Walt Disney Company (NYSE:DIS). The Walt Disney Company (NYSE:DIS) is an entertainment company that operates through Entertainment, Sports, and Experiences segments. The one-month return of The Walt Disney Company (NYSE:DIS) was -4.13%, and its shares gained 0.91% of their value over the last 52 weeks. On February 21, 2025, The Walt Disney Company (NYSE:DIS) stock closed at $108.66 per share with a market capitalization of $196.43 billion.
Mar Vista Global Quality Strategy stated the following regarding The Walt Disney Company (NYSE:DIS) in its Q4 2024 investor letter:
“Over the past year, our investment in The Walt Disney Company (NYSE:DIS) unfolded as expected. With one of the most compelling combinations of global content and consumer brands, Disney’s media business has finally reached a positive turning point. The company is successfully adapting its operations to address the ongoing transformation of the media industry. This progress has been reflected in its stock performance, closing the gap to its intrinsic value.
As friction costs diminish within the media ecosystem, companies with global audiences are receiving help from their unmatched scale advantages. While Disney is setting up itself as a long-term leader in the digital streaming space, the landscape of content distribution is still in flux. Platform giants like Netflix, Alphabet, Amazon, and Apple are rapidly dismantling competitive barriers, further intensifying the pace of change.
This secular disruption places Disney and other traditional media companies in a precarious position. With the risk-reward profile for Disney no longer favoring significant upside, we exited our investment during the quarter.”
A packed theater of moviegoers watching a blockbuster film produced by the entertainment company.
The Walt Disney Company (NYSE:DIS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 108 hedge fund portfolios held The Walt Disney Company (NYSE:DIS) at the end of the fourth quarter compared to 76 in the third quarter. While we acknowledge the potential of The Walt Disney Company (NYSE:DIS) 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 The Walt Disney Company (NYSE:DIS) and shared the list of stocks Jim Cramer mentioned recently. 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.