Massif Capital, an investment management company, released its “Massif Capital Real Assets Strategy” fourth quarter 2024 investor letter. A copy of the same can be downloaded here. The strategy returned 0.04% net of fees, with gross of fee gains from the long book of 0.18% and short book returns of 0.03% in the fourth quarter. In 2024 the strategy was up 12.1% net of fees, with gross of fees gains from the long book of 12.1% and short book of 1.0%. The portfolio is up 6.6% as of January 21, 2025. Although the firm is happy with 2024 performance but not satisfied. Overall, it was a strong return on an absolute basis, particularly considering the industries in which the strategy invests. For more information on the fund’s best picks in 2024, please check its top five holdings.
Massif Capital highlighted stocks like Enovix Corporation (NASDAQ:ENVX), in the fourth quarter 2024 investor letter. Enovix Corporation (NASDAQ:ENVX) is a lithium-ion batteries manufacturing company. The one-month return of Enovix Corporation (NASDAQ:ENVX) was 11.30%, and its shares gained 29.97% of their value over the last 52 weeks. On January 23, 2024, Enovix Corporation (NASDAQ:ENVX) stock closed at $12.11 per share with a market capitalization of $2.28 billion.
Massif Capital stated the following regarding Enovix Corporation (NASDAQ:ENVX) in its Q4 2024 investor letter:
“Our most volatile position remains Enovix Corporation (NASDAQ:ENVX), and we admit to being miffed by its continued volatility. At one point, it made sense as it was a story stock, but at this point, the stock has advanced well beyond being a story. Despite the progress the firm is making operationally, the stock has historically annualized volatility over rolling 100-day periods of nearly 100%. Last year, the stock moved more than 30% from local lows to local highs four times; it also had drawn downs from local highs to local lows of more than 35% three times. The short interest in the stock also remains incredibly high at more than 30% of the stock’s float.
This strange trading behavior and short interest are occurring against a strong operational backdrop. The firm completed site acceptance testing for its high-volume production line at its Fab-2 site in December, positioning the company well for mass production of batteries starting in 2025/2026. The management team also continues to advance the sale pipeline, announcing, in December, a prepaid purchase order from a “Silicon Valley-based global technology leader” for a battery solution for the buying firm’s mixed reality wearables. The deliveries for this order will be small in 2025 and ramp in 2026, but it’s unclear, especially given the market for mixed reality wearables (total TAM assuming battery ASP of $5/unit is $175 million), that they will be all that significant. Nevertheless, this order is yet another indicator that this is no longer a company with a science experiment and a story but instead a battery manufacturer…” (Click here to read the full text)
A close-up of a battery cell being assembled with intricate precision.
Enovix Corporation (NASDAQ:ENVX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 14 hedge fund portfolios held Enovix Corporation (NASDAQ:ENVX) at the end of the third quarter which was 22 in the previous quarter. In the third quarter of 2024, Enovix Corporation (NASDAQ:ENVX) reported $4.3 million in revenues which was above the midpoint of forecast. While we acknowledge the potential of Enovix Corporation (NASDAQ:ENVX) 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 Enovix Corporation (NASDAQ:ENVX) and shared the list of firms post strong gains amid Wall Street bloodbath. 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.