Middle Coast Investing, an investment advisor firm, released its second-quarter investor letter. A copy of the letter can be downloaded here. It was a good and active quarter for the firm. The portfolio’s price to earnings for the trailing 12 months (TTM) was 20.8. Cash and equivalents accounted for 13.4% of the portfolio at the end of the quarter, with an estimated average yield of 3.9%. This compares to 14.7% of the portfolio and a 3.9% yield at the end of Q1. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Middle Coast Investing highlighted stocks like Lululemon Athletica Inc. (NASDAQ:LULU), in the second quarter 2024 investor letter. Lululemon Athletica Inc. (NASDAQ:LULU) designs, distributes and retails athletic apparel, footwear, and accessories. The one-month return of Lululemon Athletica Inc. (NASDAQ:LULU) was -6.98%, and its shares lost 24.14% of their value over the last 52 weeks. On July 12, 2024, Lululemon Athletica Inc. (NASDAQ:LULU) stock closed at $291.09 per share with a market capitalization of $36.387 billion.
Middle Coast Investing stated the following regarding Lululemon Athletica Inc. (NASDAQ:LULU) in its Q2 2024 investor letter:
“I mentioned last quarter and higher above that I like buying quality stocks on sale. Lululemon Athletica Inc. (NASDAQ:LULU), the 2nd worst performer in the S&P 500 this year, qualifies. I published a full thesis on the stock before its most recent earnings, but the basics: the yoga pants and clothing company has had an amazing post pandemic run that is approaching its end. Its growth in the U.S. is slow/non-existent at the moment, but it is growing very fast in China and Europe. I think that international growth is likely to endure, and that its U.S. slowness is likely to be temporary. Lululemon shares are not ‘cheap’, but they are on sale for an average price, and I think the company will grow faster than average over the next five years. I would be wrong if Lululemon is a fad gone bust, or faces a huge post-pandemic hangover as people get used to leaving the house more. We’ll see.”
A store employee in an athletic apparel store restocking merchandise.
Lululemon Athletica Inc. (NASDAQ:LULU) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 51 hedge fund portfolios held Lululemon Athletica Inc. (NASDAQ:LULU) at the end of the first quarter which was 52 in the previous quarter. The total revenue of Lululemon Athletica Inc. (NASDAQ:LULU) in the first quarter increased to 10% or 11% in constant currency. While we acknowledge the potential of Lululemon Athletica Inc. (NASDAQ:LULU) 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 Lululemon Athletica Inc. (NASDAQ:LULU) and shared Carillon Eagle Mid Cap Growth Fund’s views on the company in the previous quarter. 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.
