Qualivian Investment Partners, an investment partnership focused on long-only public equities, released its Q3 2024 investor letter. A copy of the same can be downloaded here. The fund outperformed the iShares MSCI USA Quality Factor ETF (QUAL) by 38.6% and 33.2% on a gross and net basis since its inception through June 30, 2024. It also exceeded the S&P 500 by 14.8% and 9.4%, respectively, on a gross and net basis. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Qualivian Investment Partners highlighted stocks like O’Reilly Automotive, Inc. (NASDAQ:ORLY) in the third quarter 2024 investor letter. O’Reilly Automotive, Inc. (NASDAQ:ORLY) is a retailer and supplier of automotive aftermarket parts, tools, supplies, equipment, and accessories. The one-month return of O’Reilly Automotive, Inc. (NASDAQ:ORLY) was 4.43%, and its shares gained 27.73% of their value over the last 52 weeks. On December 13, 2024, O’Reilly Automotive, Inc. (NASDAQ:ORLY) stock closed at $1,270.60 per share with a market capitalization of $73.306 billion.
Qualivian Investment Partners stated the following regarding O’Reilly Automotive, Inc. (NASDAQ:ORLY) in its Q3 2024 investor letter:
“O’Reilly Automotive, Inc. (NASDAQ:ORLY): The company reported Q2 2024 revenue growth of 5% on a SSS comp of 2.3%, while EPS grew 7%, both of which missed expectations. Management as well as competitor commentary suggested slowing demand industry wide. Operating cost leverage from a growing topline was offset by wage inflationary pressures, resulting in operating margins coming down by 40 bps year-on-year. The company revised full-year guidance down for revenue, same- store-sales comp growth, and EPS to account for the miss in the quarter.
ORLY is the leader in the automotive retail parts marketplace and has outexecuted the competition, especially the smaller mom and pop auto parts stores that cater to the retail and auto mechanic shops in the US. Furthermore, its historical deployment of its excess cash to repurchase its shares continues to be a key linchpin of its ability to generate shareholder returns more than the market. While we are maintaining a watchful eye on slowing market trends, we continue to see ORLY as a long-term core holding in the fund.”
A mechanic working on a car in an auto shop, skillfully replacing the aftermarket parts.
O’Reilly Automotive, Inc. (NASDAQ:ORLY) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 41 hedge fund portfolios held O’Reilly Automotive, Inc. (NASDAQ:ORLY) at the end of the third quarter which was 52 in the previous quarter. While we acknowledge the potential of O’Reilly Automotive, Inc. (NASDAQ:ORLY) 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 O’Reilly Automotive, Inc. (NASDAQ:ORLY) and shared the list of best stocks to buy for the long-term, according to Charles Akre. TimesSquare Capital U.S. Focus Growth Strategy stated in the Q3 2024 investor letter that O’Reilly Automotive, Inc. (NASDAQ:ORLY) rose by 9% in the quarter. 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.
