Should You Consider Investing in LVMH Moët Hennessy – Louis Vuitton, Société Européenne (LVMUY)?
Investment management company Vulcan Value Partners recently released its third-quarter 2024 investor letter. A copy of the letter can be downloaded here. Although the firm is pleased with the results, the quarterly results were mixed during the quarter. The firm capitalized on stock price volatility by allocating capital to companies with better price-to-value ratios. In the quarter, the fund’s Large Cap Composite returned 8.2% net of fees and expenses, the Small Cap Composite returned 9.1% net, the Focus Composite returned 5.6% net, the Focus Plus composite returned 5.9% and the All-Cap Composite returned 8.1% net. For more information on the fund’s best picks in 2024, please check its top five holdings.
Vulcan Value Partners highlighted stocks like LVMH Moët Hennessy – Louis Vuitton, Société Européenne (OTC:LVMUY), in the third quarter 2024 investor letter. LVMH Moët Hennessy – Louis Vuitton, Société Européenne (OTC:LVMUY) is a luxury goods company. The one-month return of LVMH Moët Hennessy – Louis Vuitton, Société Européenne (OTC:LVMUY) was -5.10%, and its shares lost 7.41% of their value over the last 52 weeks. On October 16, 2024, LVMH Moët Hennessy - Louis Vuitton, Société Européenne (OTC:LVMUY) stock closed at $130.46 per share with a market capitalization of $340.964 billion.
Vulcan Value Partners stated the following regarding LVMH Moët Hennessy - Louis Vuitton, Société Européenne (OTC:LVMUY) in its Q3 2024 investor letter:
"LVMH Moët Hennessy - Louis Vuitton, Société Européenne (OTC:LVMUY) is the largest luxury goods manufacturer in the world. It benefits from brand equity curated over decades with high quality, exclusive products that are instantly recognizable to consumers worldwide. LVMH owns a global portfolio of 75 luxury brands across various categories such as fashion, jewelry, wines and spirits, cosmetics, watches, and other goods. Its prominent brands include Louis Vuitton, Christian Dior, Fendi, Givenchy, Tiffany & Co., and Marc Jacobs. LVMH’s founder and CEO, Bernard Arnault, has operated the business with a long-term mindset that should endure long past his tenure. After several years of above-trend growth, LVMH’s sales growth has slowed, and we believe its profits will decline marginally this year. We believe the company can compound its value at a low double[1]digit rate over our long-term time horizon. We have owned LVMH in the past, and recent stock price volatility has allowed us to buy this wonderful business with a margin of safety to our estimate of intrinsic value."
A shelf of luxurious perfumes in an upmarket department store surrounded by satisfied customers.
LVMH Moët Hennessy - Louis Vuitton, Société Européenne (OTC:LVMUY) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 1 hedge fund portfolios held LVMH Moët Hennessy - Louis Vuitton, Société Européenne (OTC:LVMUY) at the end of the second quarter which was 2 in the previous quarter. While we acknowledge the potential of LVMH Moët Hennessy - Louis Vuitton, Société Européenne (OTC:LVMUY) 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.