Columbia Threadneedle Investments, an investment management company released its “Columbia Seligman Global Technology Fund” third quarter 2024 investor letter. A copy of the letter can be downloaded here. Equity markets rose in the third quarter with the large-cap Russell 1000 Index gaining 6.08%, raising its year-to-date return to 21.18%. The fund’s Institutional Class shares returned 1.00% in the quarter, compared to a 1.52% return for the MSCI World Information Technology Index-Net. In addition, you can check the fund’s top 5 holdings for its best picks for 2024.
Columbia Seligman Global Technology Fund highlighted stocks like GoDaddy Inc. (NYSE:GDDY) in the third quarter 2024 investor letter. GoDaddy Inc. (NYSE:GDDY) designs and develops cloud-based products. The one-month return of GoDaddy Inc. (NYSE:GDDY) was 23.79%, and its shares gained 105.76% of their value over the last 52 weeks. On November 26, 2024, GoDaddy Inc. (NYSE:GDDY) stock closed at $199.73 per share with a market capitalization of $28.04 billion.
Columbia Seligman Global Technology Fund stated the following regarding GoDaddy Inc. (NYSE:GDDY) in its Q3 2024 investor letter:
“The team remains bullish on its position in GoDaddy Inc. (NYSE:GDDY), which has an Airo AI product that automatically generates websites and logos for new small and midsize customers. The fund maintained an overweight position in GoDaddy compared to the benchmark and the stock saw a run up in its price on the back of an announcement that the company would join the S&P 500 Index at the end of the second quarter of 2024. Historically, companies have seen a large jump in their stock price after being added to the Index and the trend continued with GoDaddy, as shares of the company increased during the quarter. The fund’s average positioning in the company was over 250 basis points higher than the exposure in the Index, which ultimately delivered strong excess returns for the fund relative to the S&P North American Technology Sector Index. (A basis point is 1/100 of one percent.)”
A close-up of a complex web page being developed and refined by a web development specialist.
GoDaddy Inc. (NYSE:GDDY) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 41 hedge fund portfolios held GoDaddy Inc. (NYSE:GDDY) at the end of the third quarter which was 48 in the previous quarter. GoDaddy Inc.’s (NYSE:GDDY) total revenue for the third quarter reached $1.15 billion, reflecting a 7% increase on both a reported and constant currency basis. While we acknowledge the potential of GoDaddy Inc. (NYSE:GDDY) 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 GoDaddy Inc. (NYSE:GDDY) and shared Janus Henderson Enterprise Fund’s views on the company in the previous quarter. 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.