Revolve Group (RVLV) Experienced a Strong 2024

Optimist Fund, an investment management company, released its fourth quarter investor letter. A copy of the letter can be downloaded here. 2024 proved to be another impressive year for the fund, with a return of around 67%. Since the fund’s inception, it has achieved approximately 15% annualized returns, net of fees, and the firm is nearing its 3-year anniversary. The firm believes that the portfolio has significant upside over the next 5 years. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.

Optimist Fund highlighted stocks like Revolve Group, Inc. (NYSE:RVLV), in the fourth quarter 2024 investor letter. Revolve Group, Inc. (NYSE:RVLV) is an online fashion retailer for millennial and Generation Z consumers. The one-month return of Revolve Group, Inc. (NYSE:RVLV) was 2.81%, and its shares gained 109.49% of their value over the last 52 weeks. On February 4, 2024, Revolve Group, Inc. (NYSE:RVLV) stock closed at $31.78 per share with a market capitalization of $2.25 billion.

Optimist Fund stated the following regarding Revolve Group, Inc. (NYSE:RVLV) in its Q4 2024 investor letter:

“Revolve Group, Inc. (NYSE:RVLV) – Revolve had a strong year, marked by accelerating revenue growth and significant margin expansion. This momentum was particularly evident in their Q3 results, where they achieved double-digit revenue growth for the first time in two years, coupled with substantial margin improvements. We expect these positive trends to continue into Q4 and throughout 2025, positioning the stock for strong performance moving forward.”

Are Analysts Talking About Revolve Group (RVLV)?

A modern fashion boutique lit up with neon display signs.

Revolve Group, Inc. (NYSE:RVLV) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 18 hedge fund portfolios held Revolve Group, Inc. (NYSE:RVLV) at the end of the third quarter which was 17 in the previous quarter. Revolve Group, Inc.’s (NYSE:RVLV) net sales increased 10% in the third quarter to $283 million. While we acknowledge the potential of Revolve Group, Inc. (NYSE:RVLV) 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 Revolve Group, Inc. (NYSE:RVLV) and shared Polen US SMID Company Growth Strategy’s views on the company. 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.