Nestlé S.A.’s (NSRGY) Revenue Fell Short on Expectations

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 Nestlé S.A. (OTC:NSRGY). Nestlé S.A. (OTC:NSRGY) is a food and beverage company. The one-month return of Nestlé S.A. (OTC:NSRGY) was 9.96%, and its shares lost 10.98% of their value over the last 52 weeks. On February 21, 2025, Nestlé S.A. (OTC:NSRGY) stock closed at $95.08 per share with a market capitalization of $244.614 billion.

Mar Vista Global Quality Strategy stated the following regarding Nestlé S.A. (OTC:NSRGY) in its Q4 2024 investor letter:

“Nestlé S.A.’s (OTC:NSRGY) third-quarter financial results met revised expectations but fell short on revenue. New CEO Laurent Freixe faces significant challenges in driving improvements. The critical question remains whether Nestlé’s struggles stem from executional shortcomings or broader economic factors—something we will closely monitor. With the stock trading at historic valuation lows, any early signs of progress could trigger a strong recovery in its price.”

A filled shopping cart with popular food and beverage items.

Nestlé S.A. (OTC:NSRGY) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 4 hedge fund portfolios held Nestlé S.A. (OTC:NSRGY) at the end of the fourth quarter compared to 4 in the third quarter. While we acknowledge the potential of Nestlé S.A. (OTC:NSRGY) 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 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.