Greenlight Capital, an investment management firm, released its fourth-quarter 2024 investor letter. A copy of the letter can be downloaded here. In 2024, the Greenlight Capital funds returned 7.2% net of fees and expenses, compared to 25.0% for the S&P 500 index. The Partnerships have returned 3,117% cumulatively or 12.9% annualized both net of fees and expenses, since its inception in May 1996. The S&P 500 index has returned 1,421% or 10.0% annualized, over the same period. Election uncertainty dominated 2024, and now that the election is over, it seems like there is more uncertainty than ever before. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Greenlight Capital highlighted stocks like Peloton Interactive, Inc. (NASDAQ:PTON) in its Q4 2024 investor letter. Headquartered in New York, New York, Peloton Interactive, Inc. (NASDAQ:PTON) is an interactive fitness platform. The one-month return of Peloton Interactive, Inc. (NASDAQ:PTON) was -18.70%, and its shares gained 43.97% of their value over the last 52 weeks. On January 22, 2025, Peloton Interactive, Inc. (NASDAQ:PTON) stock closed at $8.35 per share with a market capitalization of $3.185 billion.
Greenlight Capital stated the following regarding Peloton Interactive, Inc. (NASDAQ:PTON) in its Q4 2024 investor letter:
“We had some good successes, as well. Peloton Interactive, Inc. (NASDAQ:PTON) and Tenet Healthcare (THC), discussed below, were also large winners during 2024.
We presented our PTON thesis at the Robin Hood Investors Conference in October and previously sent you copies of the presentation. Yes, David rode for 20 minutes while presenting the thesis.5 PTON was a popular stock during the COVID era as demand for at-home fitness products and services skyrocketed. During this time, the company invested heavily for growth without any regard for profitability or expense management. After multiple missteps and subsequent management changes, the stock fell 98% from its peak price in early 2021. Throughout this time, PTON has maintained a loyal and engaged customer base through its subscription-based business model.
Recently, the company has committed itself to dramatically cutting costs. Should PTON be successful in right-sizing its cost structure, we expect significant EBITDA generation, and when applying a peer multiple to those profits, we believe the stock has significant upside. We established our position at an average price of $4.07 per share. PTON ended the year at $8.70.”
A group of people in a fitness class with connected fitness products in a studio or gym.
Peloton Interactive, Inc. (NASDAQ:PTON) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 35 hedge fund portfolios held Peloton Interactive, Inc. (NASDAQ:PTON) at the end of the third quarter which was 38 in the previous quarter. In the fiscal first quarter of 2025, Peloton Interactive, Inc. (NASDAQ:PTON) generated $586 million in total revenue. While we acknowledge the potential of Peloton Interactive, Inc. (NASDAQ:PTON) 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 Peloton Interactive, Inc. (NASDAQ:PTON) and shared Patient Capital Management’s views on the company. 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.