Investment management company First Pacific Advisors recently released its “FPA Queens Road Small Cap Value Fund” second quarter 2024 investor letter. A copy of the letter can be downloaded here. In the second quarter, the fund returned -2.62% compared to a -3.64% return for the Russell 2000 Value Index. In the first half of 2024, the fund returned 0.65% versus -0.85% for the index. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.
FPA Queens Road Small Cap Value Fund highlighted stocks like TD SYNNEX Corporation (NYSE:SNX) in the second quarter 2024 investor letter. TD SYNNEX Corporation (NYSE:SNX) is a distributor and solutions aggregator for the information technology (IT) ecosystem. The one-month return of TD SYNNEX Corporation (NYSE:SNX) was -3.14%, and its shares gained 17.13% of their value over the last 52 weeks. On August 13, 2024, TD SYNNEX Corporation (NYSE:SNX) stock closed at $114.01 per share with a market capitalization of $9.743 billion.
FPA Queens Road Small Cap Value Fund stated the following regarding TD SYNNEX Corporation (NYSE:SNX) in its Q2 2024 investor letter:
“TD SYNNEX Corporation (NYSE:SNX) is an information technology (IT) distributor formed through the merger of Tech Data and Synnex in 2021. IT distribution is an attractive business model that grows at a GDP+ rate with the opportunity for margin improvement through selling more software and services, although with some cyclicality. The IT distributors have historically traded cheaply, usually at less than 10x earnings.22 We have owned Synnex since 2012 and Tech Data from 2010 until it was taken private by Apollo in 2020. SNX has performed well on the back of a strengthening IT market, particularly for PCs.”
A customer happily using their mobile device in a busy urban setting.
TD SYNNEX Corporation (NYSE:SNX) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 53 hedge fund portfolios held TD SYNNEX Corporation (NYSE:SNX) at the end of the first quarter which was 28 in the previous quarter. In the second quarter SNX generated $19.3 billion in total gross billings, up 3% year-over-year. While we acknowledge the potential of TD SYNNEX Corporation (NYSE:SNX) 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 TD SYNNEX Corporation (NYSE:SNX) and shared the list of best under-the-radar AI stocks hedge funds are buying. In addition, please check out our hedge fund investor letters Q2 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.
