Sands Capital, an investment management company, released its “Sands Capital Select Growth Fund” Q4 2024 investor letter. A copy of the same can be downloaded here. Select Growth primarily targets U.S. companies that are leading the way in crucial areas of positive structural transformation within the economy. The fund returned 8.8% (net) in the fourth quarter compared to 7.1% return for the benchmark, the Russell 1000 Growth Index. The fund returned 24.3% over the one year period compared to 33.4% return for the Index. You can check the fund’s top 5 holdings to know more about its best picks for 2024.
In its fourth quarter 2024 investor letter, Sands Capital Select Growth Fund emphasized stocks such as Netflix, Inc. (NASDAQ:NFLX). Netflix, Inc. (NASDAQ:NFLX) is a streaming platform. The one-month return of Netflix, Inc. (NASDAQ:NFLX) was -4.23%, and its shares gained 51.83% of their value over the last 52 weeks. On March 31, 2025, Netflix, Inc. (NASDAQ:NFLX) stock closed at $932.53 per share with a market capitalization of $398.896 billion.
Sands Capital Select Growth Fund stated the following regarding Netflix, Inc. (NASDAQ:NFLX) in its Q4 2024 investor letter:
“Netflix, Inc. (NASDAQ:NFLX) shares rose in 2024 as the business benefited from strong growth, margin expansion, and an increasingly favorable competitive environment.
Over the course of the year, the business increasingly shifted from being a global streaming leader to becoming a global entertainment leader, in our view. The key to this shift is Netflix’s recent success in live events, which changes how we think about the business model, as well as its earning potential. More live events should support higher subscriber growth and more advertising revenue.
Netflix’s Christmas NFL games attracted 65 million viewers, with the Chiefs-Steelers and Ravens-Texans matchups becoming the top two most streamed NFL games in U.S. history. In November, the Paul-Tyson boxing match reached 108 million viewers globally. While some criticized the quality of the boxing matchup and its latency issues, we believe this misses the big-picture opportunity. Live events are the so-called killer app for user acquisition. They help drive advertising revenue by 1) creating must have inventory, 2) habituating viewers to streaming ads, and 3) creating must-see moments that haven’t before existed in the post-cord-cutting entertainment world…” (Click here to read the full text)
A home theater with family members enjoying streaming content together.
Netflix, Inc. (NASDAQ:NFLX) is in 14th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 144 hedge fund portfolios held Netflix, Inc. (NASDAQ:NFLX) at the end of the fourth quarter compared to 121 in the third quarter. While we acknowledge the potential of Netflix, Inc. (NASDAQ:NFLX) 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.
We covered Netflix, Inc. (NASDAQ:NFLX) in another article, where we shared the list of top stocks to buy according to SRS investment management. 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.