Columbia Threadneedle Investments, an investment management company released its “Columbia Threadneedle Global Technology Growth Strategy” fourth quarter 2024 investor letter. A copy of the letter can be downloaded here. The U.S. presidential election in Q4 2024 boosted U.S. equity markets, resulting in a strong year and overall positive year for global equities. The S&P 500 Index returned 2.41% during the quarter, and the index returned 25.02% for 2024. In the quarter, the fund returned 6.14% compared to the S&P Global 1200 Information Technology Index-net’s 3.72% return. Security selection drove the fund’s performance relative to the benchmark. In addition, you can check the fund’s top 5 holdings for its best picks for 2024.
In its fourth quarter 2024 investor letter, Columbia Threadneedle Global Technology Growth Strategy emphasized stocks such as Reddit, Inc. (NYSE:RDDT). Reddit, Inc. (NYSE:RDDT) operates a digital community that enable users to engage in conversations, explore passions, and research new hobbies. The one-month return of Reddit, Inc. (NYSE:RDDT) was -45.67%, and YTD its shares lost 28.94% of their value. On March 10, 2025, Reddit, Inc. (NYSE:RDDT) stock closed at $107.29 per share with a market capitalization of $107.29 billion.
Columbia Threadneedle Global Technology Growth Strategy stated the following regarding Reddit, Inc. (NYSE:RDDT) in its Q4 2024 investor letter:
“Reddit, Inc. (NYSE:RDDT) was the single best-performing stock for the fund, as the stock surged during the quarter, with significant outperformance following its stellar quarterly earnings release. The capital-light social news aggregation platform — and the ninth most-visited website in the world — reported quarterly revenue, user growth and profit margins that came in considerably higher than even the most bullish of estimates, and the company also provided forward-looking guidance that came in well ahead of expectations on most metrics. After earlier announcing a data licensing partnership with AI pioneer OpenAI, investors ‘up-voted’ the evolving AI narrative for Reddit after gaining a better understanding of its unique and hard-to-replicate trove of content generated by its growing and increasingly global user base.”
A modern computer with a digital shopping mall membership fee showing on the screen.
Reddit, Inc. (NYSE:RDDT) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 87 hedge fund portfolios held Reddit, Inc. (NYSE:RDDT) at the end of the fourth quarter compared to 52 in the third quarter. While we acknowledge the potential of Reddit, Inc. (NYSE:RDDT) 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 Reddit, Inc. (NYSE:RDDT) and shared the list of best upside stocks to buy. 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.
