Massif Capital, an investment management company, released its “Massif Capital Real Assets Strategy” second quarter 2024 investor letter. A copy of the same can be downloaded here. As of the end of the second quarter of 2024, the Massif Capital Real Assets Strategy had gained 9.4% net of fees, with year-to-date profits from both the long and short positions. For more information on the fund’s best picks in 2024, please check its top five holdings.
Massif Capital Real Assets Strategy highlighted stocks like Enovix Corporation (NASDAQ:ENVX) in its Q2 2024 investor letter. Enovix Corporation (NASDAQ:ENVX) designs, develops and manufactures lithium-ion batteries. The one-month return of Enovix Corporation (NASDAQ:ENVX) was -3.05%, and its shares lost 31.97% of their value over the last 52 weeks. On July 26, 2024, Enovix Corporation (NASDAQ:ENVX) stock closed at $14.64 per share with a market capitalization of $2.489 billion.
Massif Capital Real Assets Strategy stated the following regarding Enovix Corporation (NASDAQ:ENVX) in its Q2 2024 investor letter:
“Enovix Corporation (NASDAQ:ENVX): Enovix is perhaps a bit of an outlier in our portfolio given that it is a battery manufacturer selling into consumer goods markets, but it fits nicely in what we believe to be the Massif Capital analytical sweet spot, businesses where science/technology, geopolitics/geoeconomics and energy/materials overlap. While some would argue that Enovix is inappropriate for a liquid real asset portfolio, the traditional definition of real asset businesses is dated.
Traditionally, real asset businesses are those that own and operate real estate, infrastructure, and natural resource assets. While this definition is workable, and most of the companies we invest in fall into one of these categories, it does not consider the ever-growing role of applied physical sciences in specific manufacturing fields, nor does it take into account the growing importance of material sciences and the changing nature of energy in general. Enovix is a material sciences business aiming to transform an ever-growing list of unique, highly refined materials into energy storage devices. They create value by understanding materials’ physical and electrochemical properties better than others…” (Click here to read the full text)
A close-up of a battery cell being assembled with intricate precision.
Enovix Corporation (NASDAQ:ENVX) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 18 hedge fund portfolios held Enovix Corporation (NASDAQ:ENVX) at the end of the first quarter which was 25 in the previous quarter. In Q1, Enovix Corporation (NASDAQ:ENVX) achieved a revenue of $5.3 million, surpassing the forecast due to the strong performance in the IoT category. While we acknowledge the potential of Enovix Corporation (NASDAQ:ENVX) 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 Enovix Corporation (NASDAQ:ENVX) and shared the list of most shorted stocks that are loved by analysts. In addition, please check out our hedge fund investor letters Q2 2024 page for more investor letters from hedge funds and other leading investors.
READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks.
Disclosure: None. This article is originally published at Insider Monkey.
