Mar Vista Investment Partners, LLC, an investment management company, released the “Mar Vista Focus strategy” first quarter 2024 investor letter. A copy of the letter can be downloaded here. The S&P 500 index had the best first-quarter performance since 2019—enthusiasm over AI, robust corporate earnings, and anticipation of rate cuts fueling the rise in stock prices. The strategy returned +5.53% net-of-fees in the first quarter compared to +11.41% and +10.56% returns of the Russell 1000 Growth Index and the S&P 500 indexes. Kindly check the top 5 stocks of the strategy to know its best picks in 2024.
Mar Vista Focus strategy highlighted stocks like Adobe Inc. (NASDAQ:ADBE), in the first quarter 2024 investor letter. Adobe Inc. (NASDAQ:ADBE) is a diversified software company that operates through Digital Media, Digital Experience, and Publishing and Advertising. The one-month return of Adobe Inc. (NASDAQ:ADBE) was 8.38%, and its shares gained 6.08% of their value over the last 52 weeks. On June 14, 2024, Adobe Inc. (NASDAQ:ADBE) stock closed at $525.31 per share with a market capitalization of $235.339 billion.
Mar Vista Focus strategy stated the following regarding Adobe Inc. (NASDAQ:ADBE) in its first quarter 2024 investor letter:
“Despite underperforming during the quarter, Adobe Inc. (NASDAQ:ADBE) remains a powerful player in the creative professional market. We believe the company is well-positioned to capitalize on two key trends: the ongoing shift towards digital commerce and the rise of generative AI.
Adobe stands out as an early leader in generative AI, offering both standalone solutions like Firefly and integrated features within established products like Photoshop. This puts them ahead of the curve, attracting both creative professionals and marketing teams within corporations. As a result, Adobe is experiencing strong bookings growth in the mid-teens, which translates to healthy revenue, earnings, and cash flow. Based on these factors, we project continued intrinsic value growth for Adobe in the low-to-mid-teens range over our investment horizon.”
A team of engineers and scientists collaborating at a workstation surrounded by their applications and solutions.
Adobe Inc. (NASDAQ:ADBE) is in 20th position on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 108 hedge fund portfolios held Adobe Inc. (NASDAQ:ADBE) at the end of the first quarter which was 105 in the previous quarter. Adobe Inc. (NASDAQ:ADBE) generated $5.31 billion in revenue in the quarter, up 11% year-over-year. While we acknowledge the potential of Adobe Inc. (NASDAQ:ADBE) 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 Adobe Inc. (NASDAQ:ADBE) and shared the list of stocks recently downgraded by analysts. Adobe Inc. (NASDAQ:ADBE) was one of the top detractors of Baron Durable Advantage Fund’s in the first quarter 2024. In addition, please check out our hedge fund investor letters Q1 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.
