Seven Corners Capital, an investment management company, released its Q3 2024 investor letter. A copy of the letter can be downloaded here. Seven Corners Capital’s composite portfolio finished Q3 2024 increasing around 14%, while the S&P 500 increased by approximately 21%. This represents a 7% underperformance in the first half of the year. Since 2020 (on a “Pandemic stacked basis”), the SCC Composite Portfolio has increased by ~127% compared to ~79% for the S&P 500, including all dividends received. This is an outperformance of 4,800 basis points compared to the index. In addition, you can check the fund’s top 5 holdings to know its best picks in 2024.
Seven Corners Capital highlighted stocks like Rocket Companies, Inc. (NYSE:RKT), in the third quarter 2024 investor letter. Rocket Companies, Inc. (NYSE:RKT) is a fintech holding company that offers mortgage lending, title and settlement services, and other financial technology services. The one-month return of Rocket Companies, Inc. (NYSE:RKT) was -14.29%, and its shares gained 23.33% of their value over the last 52 weeks. On December 9, 2024, Rocket Companies, Inc. (NYSE:RKT) stock closed at $13.32 per share with a market capitalization of $26.471 billion.
Seven Corners Capital stated the following regarding Rocket Companies, Inc. (NYSE:RKT) in its Q3 2024 investor letter:
“Rocket Companies, Inc. (NYSE:RKT), 9% position (Cost Basis: $8.24)
Rocket Companies, which was up 32% YTD in 2024, represents the newest large position in the SCC Composite Portfolio, having been purchased in December 2022. RKT represents a play on a future decline in mortgage rates if and when inflation becomes subdued again.
RKT shareholders should take a measure of comfort in the fact that the company is ultimately helmed by founder Dan Gilbert. who owns 1.85 billion shares of stock (on an as-converted basis) through Rock Holdings Inc.”
A businessperson using a laptop to review the details of a mortgage loan for a client.
Rocket Companies, Inc. (NYSE:RKT) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 27 hedge fund portfolios held Rocket Companies, Inc. (NYSE:RKT) at the end of the third quarter which was 21 in the previous quarter. While we acknowledge the potential of Rocket Companies, Inc. (NYSE:RKT) 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 Rocket Companies, Inc. (NYSE:RKT) and shared the list of stocks to watch from Jim Cramer’s Latest Lightning Rounds. 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.