Patient Capital Management, a value investing firm, released its “Patient Capital Opportunity Equity Strategy” second quarter 2024 investor letter. A copy of the letter can be downloaded here. During the quarter, the strategy returned -1.9% net of fees compared to the S&P 500’s 4.3% return. According to a three-factor performance attribution model, allocation and interaction effects led to the portfolio’s underperformance which was partially offset by selection effects. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.
Patient Capital Opportunity Equity Strategy highlighted stocks like Mattel, Inc. (NASDAQ:MAT), in the second quarter 2024 investor letter. Mattel, Inc. (NASDAQ:MAT) is a toy and family entertainment company. The one-month return of Mattel, Inc. (NASDAQ:MAT) was 13.37%, and its shares lost 13.70% of their value over the last 52 weeks. On July 23, 2024, Mattel, Inc. (NASDAQ:MAT) stock closed at $17.24 per share with a market capitalization of $6.332 billion.
Patient Capital Opportunity Equity Strategy stated the following regarding Mattel, Inc. (NASDAQ:MAT) in its Q2 2024 investor letter:
“Mattel, Inc. (NASDAQ:MAT) fell in the second quarter on a weaker top line despite margins coming in ahead of expectations. While many are concerned around lapping the hit Barbie movie this year, we believe the Barbie movie is just the beginning of Mattel’s multi-year journey to transition to an IP-driven, high-performing toy company. Regardless of near-term topline results, margins should continue to expand as the company has made efforts to improve efficiencies and removed fixed costs. Longer-term, as the company executes its IP driven transition, returns on invested capital and free cash flow generation should improve, allowing the P/E multiple to expand. In the meantime, the company continues to return cash to shareholders with a repurchase program representing 16% of shares outstanding.”
Mattel, Inc. (NASDAQ:MAT) is not on our list of 31 Most Popular Stocks Among Hedge Funds. Mattel, Inc. (NASDAQ:MAT) was held by 35 hedge fund portfolios at the end of the first quarter, compared to 32 in the previous quarter, according to our database. Mattel, Inc. (NASDAQ:MAT) reported second-quarter sales of $1.080 billion, down 1% compared to Q2 2023. The adjusted gross margin rose by 430 basis points to 49.2%. While we acknowledge the potential of Mattel, Inc. (NASDAQ:MAT) 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 addition, please check out our hedge fund investor letters Q2 2024 page for more investor letters from hedge funds and other leading investors.
READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks.
Disclosure: None. This article is originally published at Insider Monkey.
