Rowan Street Capital, an investment management company, released its fourth-quarter 2024 investor letter. A copy of the letter can be downloaded here. 2024 was an excellent year for Rowan Street, with the fund achieving a net gain of +56.6% outperforming the S&P 500’s +25.0% total return. Rowan Street’s recent achievements highlight the strength of its refined investment strategy and the core values that drive all of its efforts. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.
Rowan Street Capital highlighted stocks like The Trade Desk, Inc. (NASDAQ:TTD) in its Q4 2024 investor letter. Headquartered in Ventura, California, The Trade Desk, Inc. (NASDAQ:TTD) is a technology company that offers a self-service cloud-based platform. The one-month return of The Trade Desk, Inc. (NASDAQ:TTD) was -1.18%, and its shares gained 76.39% of their value over the last 52 weeks. On January 24, 2024, The Trade Desk, Inc. (NASDAQ:TTD) stock closed at $119.96 per share with a market capitalization of $59.209 billion.
Rowan Street Capital stated the following regarding The Trade Desk, Inc. (NASDAQ:TTD) in its Q4 2024 investor letter:
“The Trade Desk (TTD): Investment Initiated: March 2020
Internal Rate of Return (IRR): 54%
The Trade Desk has been our most successful investment to date. March 2025 will mark five years since we opportunistically initiated our position at a cost basis of $17.40 (split-adjusted). Since then, TTD has appreciated more than sevenfold, delivering an annualized return of approximately 54%.
These exceptional results far outpace the company’s strong fundamental growth, with revenues and earnings compounding at approximately 25% annually over this period (refer to the table below). The primary reason for this outsized return lies in the price at which we were able to acquire TTD during the early days of the pandemic, when market fears briefly drove it down to just 10x revenues. Today, the valuation has expanded significantly to approximately 25x revenues, amplifying our returns…” (Click here to read the full text)
A large array of computer screens and tech equipment representing the technology company’s self-service cloud-based platform.
The Trade Desk, Inc. (NASDAQ:TTD) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 42 hedge fund portfolios held The Trade Desk, Inc. (NASDAQ:TTD) at the end of the third quarter which was 46 in the previous quarter. In the third quarter, Trade Desk, Inc. (NASDAQ:TTD) reported $628 million in revenues representing growth of 27% year-over-year. While we acknowledge the potential of The Trade Desk, Inc. (NASDAQ:TTD) 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 The Trade Desk, Inc. (NASDAQ:TTD) and shared the list of best AdTech stocks to buy according to hedge funds. 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.