Bronte Capital, an investment management company, released its “Amalthea Fund” third-quarter 2024 investor letter. A copy of the letter can be downloaded here. The fund was down 3.72% for the quarter vs. +2.54% for the MSCI ACWI (in $A). It was down 5.59% in September vs. -0.35% for the index. The market rose in the third quarter, reaching new peaks, with a minor dip in late August and early September. In addition, you can check the top 5 holdings of the fund to know its best picks in 2024.
Amalthea Fund highlighted stocks like Summit Therapeutics Inc. (NASDAQ:SMMT) in the Q3 2024 investor letter. Summit Therapeutics Inc. (NASDAQ:SMMT) engages in the discovery, development, and commercialization of antibiotic medicines. The one-month return of Summit Therapeutics Inc. (NASDAQ:SMMT) was -0.15%, and its shares gained 925.64% of their value over the last 52 weeks. On November 19, 2024, Summit Therapeutics Inc. (NASDAQ:SMMT) stock closed at $20.00 per share with a market capitalization of $14.749 billion.
Amalthea Fund stated the following regarding Summit Therapeutics Inc. (NASDAQ:SMMT) in its Q3 2024 investor letter:
“The short book hurt us in many ways. Several deeply junky stocks went up – and one – Summit Therapeutics Inc. (NASDAQ:SMMT) – in which we may have made a mistake – stood out above all. Even excluding Summit, our short book would have faced challenges in September, but this position exacerbated the difficulties.
A little background is necessary. Summit is (or was) a small drug company that we scored as having some suspect associations and hence a short candidate. Our database of bad people in financial markets is very broad. Summit was not such a stock. Our short signals were triggered light amber, not bright red. This meant the company required a bit more analysis…” (Click here to read the full text)
A laboratory employee in a sterile environment inspecting a microscope focused on a Clostridioides difficile infection sample.
Summit Therapeutics Inc. (NASDAQ:SMMT) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 21 hedge fund portfolios held Summit Therapeutics Inc. (NASDAQ:SMMT) at the end of the third quarter which was 17 in the previous quarter. While we acknowledge the potential of Summit Therapeutics Inc. (NASDAQ:SMMT) 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 Summit Therapeutics Inc. (NASDAQ:SMMT) and shared the list of unstoppable stocks that could make you richer. In addition, please check out our hedge fund investor letters Q3 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.