Matrix Asset Advisors, an asset management company, released its third-quarter 2023 investor letter. A copy of the same can be downloaded here. In 2025, the firm anticipates further economic growth with a slight slowdown from the 3% GDP in the previous quarter. Through September 30, Matrix’s Large Cap Value portfolio (LCV) was up in the high teens year-to-date and in the mid-single digits in Q3 2024. The gain for the quarter lagged behind the Russell 1000 Value’s performance but was somewhat greater than the S&P 500. The Matrix Dividend Income (MDI) portfolio saw a significant increase after a slow beginning to the year. It increased by low double digits in the third quarter and by mid-teens for the nine months ending September 30. In the third quarter, the portfolio outperformed the Russell 1000® Value Index and the S&P 500®. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Matrix Asset Advisors highlighted stocks like Nestlé S.A. (OTC:NSRGY) in the third quarter 2024 investor letter. Nestlé S.A. (OTC:NSRGY) is a food and beverage company that offers baby foods, bottled water, cereals and chocolate and confectionery products. The one-month return of Nestlé S.A. (OTC:NSRGY) was -5.40%, and its shares lost 25.87% of their value over the last 52 weeks. On December 13, 2024, Nestlé S.A. (OTC:NSRGY) stock closed at $83.81 per share with a market capitalization of $216.699 billion.
Matrix Asset Advisors stated the following regarding Nestlé S.A. (OTC:NSRGY) in its Q3 2024 investor letter:
“In Q3, we added a position in Nestlé S.A. (OTC:NSRGY), a Swiss based packaged food company with strong market shares in baby food, coffee, chocolate, beverages, prepared dishes, and pet food. The company’s major brands include Nestlé, Kit Kat, Toll House, Stouffer’s, Gerber, Haagen Daz, and Perrier. Nestlé has a long history of earnings growth and has increased its dividend each year for the past 30 years. The share price declined from $140 eighteen months ago to below $100 when we made our investment. We believe the reasons for the decline are temporary. The company missed sales and earnings estimates in the past year as food inflation declined, and costs continued to rise. The company recently replaced its CEO from someone focused on strategy to an executive with product development and operations expertise. At its current price, the shares are trading at the low end of their historical valuation.”
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Nestlé S.A. (OTC:NSRGY) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 4 hedge fund portfolios held Nestlé S.A. (OTC:NSRGY) at the end of the third quarter which was 4 in the previous quarter. While we acknowledge the potential of Nestlé S.A. (OTC:NSRGY) 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 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.
