Columbia Threadneedle Investments, an investment management company released its “Columbia Threadneedle Global Technology Growth Strategy” third quarter 2024 investor letter. A copy of the letter can be downloaded here. Equity markets rose once again, marking the fourth consecutive quarter of positive returns for stocks as the Federal Reserve lowered interest rates for the first time since the start of the pandemic, with a much anticipated 0.5% (50 basis point) cut marking a shift to a more balanced policy. In the quarter, the fund returned -0.94% compared to the S&P Global 1200 Information Technology Index-net’s 0.72% return. Security selection drove the fund’s performance relative to the benchmark. In addition, you can check the fund’s top 5 holdings for its best picks for 2024.
Columbia Threadneedle Global Technology Growth Strategy highlighted stocks like Synopsys, Inc. (NASDAQ:SNPS), in the third quarter 2024 investor letter. Synopsys, Inc. (NASDAQ:SNPS) offers electronic design automation software products used to design and test integrated circuits. The one-month return of Synopsys, Inc. (NASDAQ:SNPS) was 13.88%, and its shares gained 3.96% of their value over the last 52 weeks. On November 22, 2024, Synopsys, Inc. (NASDAQ:SNPS) stock closed at $565.07 per share with a market capitalization of $86.8 billion.
Columbia Threadneedle Global Technology Growth Strategy stated the following regarding Synopsys, Inc. (NASDAQ:SNPS) in its Q3 2024 investor letter:
“Finally, shares of Synopsys, Inc. (NASDAQ:SNPS) fell as the company reported a mixed quarter with a subdued outlook for growth. The company provides a mix of software, hardware and internet protocol solutions for semiconductor customers, and the market fretted over the increased geopolitical tension that maligned the semiconductor capital equipment companies, as well as the potential impact from industry bellwether Intel’s sizable restructuring.”
A close-up of a tech engineer soldering a modern system-on-chip circuit board in a laboratory setting.
Synopsys, Inc. (NASDAQ:SNPS) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 53 hedge fund portfolios held Synopsys, Inc. (NASDAQ:SNPS) at the end of the third quarter which was 53 in the previous quarter. Synopsys, Inc. (NASDAQ:SNPS) generated total revenue of $1.53 billion in the fiscal third quarter, up 13% year-over-year. While we acknowledge the potential of Synopsys, Inc. (NASDAQ:SNPS) 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 Synopsys, Inc. (NASDAQ:SNPS) and shared Carillon Eagle Mid Cap Growth Fund’s views on the company. In Q3 2024, Synopsys, Inc. (NASDAQ:SNPS) detracted from Aristotle Focus Growth Strategy’s performance due to a broader sell-off in AI-related semiconductor stocks. 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.