Montaka Global Investments, an investment management company, released its fourth quarter 2024 investor letter. A copy of the letter can be downloaded here. All of the companies in Motaka’s portfolio have significant and growing competitive advantages, which aligns with the firm’s investment strategy. All of them are situated within advantageous tailwinds and structural changes. Furthermore, they continue to be substantially undervalued despite recent great stock price performance. Montaka’s investee companies account for 75% of Montaka’s total portfolio and yearly portfolio turnover is roughly 25% (representing ~4 year holding period, on average). In addition, please check the fund’s top five holdings to know its best picks in 2024.
Montaka Global Investments highlighted stocks like S&P Global Inc. (NYSE:SPGI) in the Q4 2024 investor letter. S&P Global Inc. (NYSE:SPGI) offers credit ratings, benchmarks, analytics, and workflow solutions in the global capital, commodity, and automotive markets. The one-month return of S&P Global Inc. (NYSE:SPGI) was 1.22%, and its shares gained 13.71% of their value over the last 52 weeks. On January 22, 2024, S&P Global Inc. (NYSE:SPGI) stock closed at $510.96 per share with a market capitalization of $158.551 billion.
Montaka Global Investments stated the following regarding S&P Global Inc. (NYSE:SPGI) in its Q4 2024 investor letter:
“The broader global investing environment will also likely improve cyclically in 2025. The global monetary tightening cycle has now peaked, and we are in the early days of an easing cycle – including in the US, the Eurozone, and China (collectively representing nearly 60% of global GDP) – which will likely continue in 2025.
While there is no shortage of political upheaval around the world, in 2025 we will exit a trough of ‘political dysfunction’ in the world’s largest economy, the US (to which a majority of Montaka’s portfolio is exposed).
Political dysfunction stems from the different legislative bodies being controlled by different political parties that tend to disagree on most topics.
These collective conditions will benefit the shareholders of many businesses.
One of our major holdings, S&P Global Inc. (NYSE:SPGI), for example, which has already commenced a cyclical recovery in its Credit Ratings business, will likely see a new recovery in its Market Intelligence business as buy-side and sell-side market activity recovers…” (Click here to read the full text)
A group of analysts studying data on a large monitor.
S&P Global Inc. (NYSE:SPGI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 85 hedge fund portfolios held S&P Global Inc. (NYSE:SPGI) at the end of the third quarter which was 90 in the previous quarter. In the third quarter, S&P Global Inc. (NYSE: SPGI) reported a 16% year-over-year increase in total revenue, marking the third consecutive quarter of accelerating revenue growth. While we acknowledge the potential of S&P Global Inc. (NYSE:SPGI) 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 S&P Global Inc. (NYSE:SPGI) and shared stock picks of billionaire Chris Hohn. 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.