Davis Funds, an investment management firm, released its “Davis New York Venture Fund” third quarter 2023 investor letter, a copy of which can be downloaded here. During the initial seven months, ending on July 31, 2023, the fund yielded a return of 25.38%. This recent performance of the fund aligns with the burst of the easy-money bubble, which originated in the wake of the financial crisis and gained momentum throughout the pandemic. Take a moment to review the fund’s top 5 holdings to gain insights into their primary investment choices for 2023.
In its Q3 2023 investor letter, Davis New York Venture Fund mentioned Alphabet Inc. (NASDAQ:GOOG) and explained its insights for the company. Alphabet Inc. (NASDAQ:GOOG) is a Mountain View, California-based bank holding company with a $1.6 trillion market capitalization. Alphabet Inc. (NASDAQ:GOOG) delivered a 46.93% return since the beginning of the year, while its 12-month returns are up by 50.37%. The stock closed at $130.37 per share on November 3, 2023.
Here is what Davis New York Venture Fund has to say about Alphabet Inc. (NASDAQ:GOOG) in its Q3 2023 investor letter:
“In big technology, the huge price volatility of leaders like Alphabet can come with opportunity—trimming when prices are high and adding when they are low. For example, we added significantly to Meta last year at less than half of today’s price and have recently trimmed our position in Alphabet as its shares swung back into favor. For many years, we have referred to the leading online platforms such as Alphabet as the blue chips of tomorrow. Their economies of scale, network effects, strong competitive positions and profitable business models combine to make them some of the best businesses we have ever seen. Because of this success, these juggernauts have attracted waves of regulatory scrutiny and relentless negative press coverage. As a result of the ebb and flow of these controversies, investor sentiment can swing precipitously from euphoria to disgust, which can provide opportunities for price-conscious investors. While we are not short-term traders, the enormous price volatility of these online tech leaders has led us to be opportunistic, trimming when prices are high and adding when they are low. Recently, as these companies have swung back into favor, we have trimmed our holdings in Alphabet.
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Our calculations show that Alphabet Inc. (NASDAQ:GOOG) ranks 7th on our list of the 30 Most Popular Stocks Among Hedge Funds. Alphabet Inc. (NASDAQ:GOOG) was in 152 hedge fund portfolios at the end of the second quarter of 2023, compared to 155 funds in the previous quarter. Alphabet Inc. (NASDAQ:GOOG) delivered a 1.42% return in the past 3 months. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters Q3 2023 page.
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Disclosure: None. This article is originally published at Insider Monkey.
