Andvari Associates, an investment management firm, released its second quarter 2024 investor letter, a copy of which can be downloaded here. Year to date, the portfolio appreciated 7.7% net of fees while the SPDR S&P 500 ETF rose 15.2%. There are two primary causes of Andvari’s trailing returns: (1) the firm does not hold some of the biggest and best-performing companies, such as Nvidia, Apple, Microsoft, Google, Meta, and Amazon; and (2) poor performance of Mesa. Andvari invested in a diverse range of companies in terms of market cap. Andvari’s performance in the first half of the year is in line with what the market typically generates in a complete year. It can feel disappointing, though, if compared with higher performance of the large caps. In addition, you can check the fund’s top 5 holdings to find out its best picks for 2024.
Andvari Associates highlighted stocks like Mettler-Toledo International Inc. (NYSE:MTD) in the second quarter 2024 investor letter. Mettler-Toledo International Inc. (NYSE:MTD) is a precision instruments and services manufacturer and supplier. The one-month return of Mettler-Toledo International Inc. (NYSE:MTD) was 11.48%, and its shares gained 16.85% of their value over the last 52 weeks. On July 30, 2024, Mettler-Toledo International Inc. (NYSE:MTD) stock closed at $1,509.56 per share with a market capitalization of $32.24 billion.
Andvari Associates stated the following regarding Mettler-Toledo International Inc. (NYSE:MTD) in its Q2 2024 investor letter:
“Mettler-Toledo International Inc. (NYSE:MTD) makes a variety of lab instruments as well as weighing scales for industrial and retail use. These products are essential to the end users and often required to comply with a variety of regulations. The company has the number one product in most areas where it competes. However, its market share ranges from 25% to 30% share in these business lines. This means, despite its top status, competition remains highly fragmented, which gives them opportunity to capture more share over time.
With an installed base of over $16 billion worth of machines across the world, revenues from services and consumable adds to the predictability of total revenues. Pricing power is strong given the high value and relatively low cost of their products to end customers. Mettler has consistently captured 200 basis points (or greater) of net pricing every year. The company even successfully raised prices during 2009.”
A close-up of a laboratory instrument, with a technician making precise adjustments.
Mettler-Toledo International Inc. (NYSE:MTD) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 42 hedge fund portfolios held Mettler-Toledo International Inc. (NYSE:MTD) at the end of the first quarter which was 39 in the previous quarter. While we acknowledge the potential of Mettler-Toledo International Inc. (NYSE:MTD) 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 Mettler-Toledo International Inc. (NYSE:MTD) and shared the list of best scientific instruments stocks to buy. In addition, please check out our hedge fund investor letters Q2 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.
