Mar Vista Investment Partners, LLC, an investment management company, released the “Mar Vista U.S. Quality Strategy” fourth quarter 2024 investor letter. A copy of the letter can be downloaded here. The stock market rose in 2024 and carried on through the fourth quarter, as investors welcomed the growing optimism following the presidential election. For the year, the S&P 500® Index (“S&P 500®”) increased by 25.0%, its second straight consecutive annual gain above 20%. In the fourth quarter, the strategy returned -0.18% net-of-fees compared to +2.74% and +2.41% returns for the Russell 1000® Index and the S&P 500® Index, respectively. In addition, please check the fund’s top five holdings to know its best picks in 2024.
In its fourth quarter 2024 investor letter, Mar Vista U.S. Quality Strategy emphasized stocks such as GXO Logistics, Inc. (NYSE:GXO). Incorporated in 2021, GXO Logistics, Inc. (NYSE:GXO) is a logistics services provider. The one-month return of GXO Logistics, Inc. (NYSE:GXO) was -13.89%, and its shares lost 25.37% of their value over the last 52 weeks. On February 21, 2025, GXO Logistics, Inc. (NYSE:GXO) stock closed at $39.30 per share with a market capitalization of $4.697 billion.
Mar Vista U.S. Quality Strategy stated the following regarding GXO Logistics, Inc. (NYSE:GXO) in its Q4 2024 investor letter:
“Our investment in GXO Logistics, Inc. (NYSE:GXO) was under review after growth and market share gains did not meet our expectations from Q4 2023 to Q2 2024. During this period, management announced a potential sale of the business, which caused the shares to appreciate by over 15%. We seized this opportunity to reduce the weighting of the investment closer to our estimate of fair value. However, once the CEO announced his retirement and the company ended the potential sale, we exited our small remaining position.”
A fleet of trucks leaving a depot, loaded with consumer goods, representing the companies logistical services.
GXO Logistics, Inc. (NYSE:GXO) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 49 hedge fund portfolios held GXO Logistics, Inc. (NYSE:GXO) at the end of the fourth quarter compared to 33 in the third quarter. In the fourth quarter 2024, GXO Logistics, Inc. (NYSE:GXO) generated revenues of $3.3 billion, up 25% year-over-year. While we acknowledge the potential of GXO Logistics, Inc. (NYSE:GXO) 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.
