Burke Wealth Management, an investment management company, released its “Focused Growth Strategy” fourth quarter 2024 investor letter. A copy of the letter can be downloaded here. The market had another outstanding year in 2024, with the S&P 500 rising 25.0%. The strategy had an even better year, with net returns of 28.4%. Looking a bit closer, it is clear that, similar to 2023, 2024 had a rise that was appreciated by everyone, but the overall market returns were concentrated in a small handful of stocks. In addition, please check the fund’s top five holdings to know its best picks in 2024.
In its fourth quarter 2024 investor letter, Burke Wealth Management emphasized stocks such as CrowdStrike Holdings, Inc. (NASDAQ:CRWD). CrowdStrike Holdings, Inc. (NASDAQ:CRWD) is a global cyber security solutions provider. The one-month return of CrowdStrike Holdings, Inc. (NASDAQ:CRWD) was -14.01%, and its shares gained 13.84% of their value over the last 52 weeks. On March 19, 2025, CrowdStrike Holdings, Inc. (NASDAQ:CRWD) stock closed at $375.05 per share with a market capitalization of $92.96 billion.
Burke Wealth Management stated the following regarding CrowdStrike Holdings, Inc. (NASDAQ:CRWD) in its Q4 2024 investor letter:
“CrowdStrike Holdings, Inc. (NASDAQ:CRWD): If you are like most of our clients who check their portfolio balance twice per year, once on June 30th and again on December 31st, you might not have noticed the roller-coaster ride Crowdstrike shares have been on the last six months. For those of you who check things a little more frequently, you did. After triggering the largest IT outage in history on July 11th, Crowdstrike shares were under tremendous pressure as investors sorted through a very wide range of long-term outcomes. Management’s response to the outage was outstanding. They identified the cause within hours, developed a plan in real-time to fix the error, and were proactive in taking care of clients impacted by the outage. As such, client retention remained in the high 90% range and shares of Crowdstrike filled in the gap down they took in the aftermath of the outage. What intrigues us about the “customer care” program that Crowdstrike offered clients in the wake of the outage is that it looks a lot more like a discounted bundling plan designed to drive the adoption of additional modules and broader usage of the Crowdstrike platform as a whole than it does a reimbursement for the inconvenience of the outage. Of course, management is good enough to clearly identify the costs associated with this program in the event analysts wish to treat this as a one-time non-recurring charge. We wholly support the platformization strategy and are pleasantly surprised that Crowdstrike has been able to undertake what is usually a painful transition period with no real negative impact on the shares. This management team has made delicious lemonade out of the July 11th basket of lemons left on its doorstep.”
Security personnel at their consoles, monitoring a global network of threats in real-time.
CrowdStrike Holdings, Inc. (NASDAQ:CRWD) is in not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 77 hedge fund portfolios held CrowdStrike Holdings, Inc. (NASDAQ:CRWD) at the end of the fourth quarter which was 74 in the previous quarter. In the third quarter of fiscal 2025, CrowdStrike Holdings, Inc.’s (NASDAQ:CRWD) subscription revenue grew 31% year-over-year and total revenue exceeded $1 billion. While we acknowledge the potential of CrowdStrike Holdings, Inc. (NASDAQ:CRWD) 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 CrowdStrike Holdings, Inc. (NASDAQ:CRWD) and shared the list of AI stocks turning heads on Wall Street. 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.