Upslope Capital Management Exited Garmin Ltd. (GRMN) Due to Full Valuation
Upslope Capital Management, an investment management firm, released its third-quarter 2024 investor letter. A copy of the letter can be downloaded here. Q3 was a near-ideal environment for Upslope’s investment style, so the fund returned +14.8% (net) in Q3 compared to +6.8% and +2.3% for the S&P Midcap 400 ETF (MDY) and HFRX Equity Hedge Index, respectively. YTD, the fund’s return was +18.1% (net) compared to +13.2% and +7.5% returns, respectively, for the indexes. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.
Upslope Capital Management highlighted stocks like Garmin Ltd. (NYSE:GRMN) in the third quarter 2024 investor letter. Garmin Ltd. (NYSE:GRMN) designs, develops and manufactures navigation, communications, and information devices. The one-month return of Garmin Ltd. (NYSE:GRMN) was -4.68%, and its shares gained 64.33% of their value over the last 52 weeks. On October 18, 2024, Garmin Ltd. (NYSE:GRMN) stock closed at $167.58 per share with a market capitalization of $32.211 billion.
Upslope Capital Management stated the following regarding Garmin Ltd. (NYSE:GRMN) in its Q3 2024 investor letter:
"The Fund also significantly reduced its positions in Garmin Ltd. (NYSE:GRMN) (GRMN, technology business known for smartwatches and navigation systems, among other products) and Kongsberg (KOG-OSL, Norway-based aero/defense and maritime business), due to full valuations. Both are very well-managed leaders in their respective niches. However, a significant amount of good news is clearly baked into shares today."
A marathon runner wearing a company branded smartwatch, monitoring his performance in real-time.
Garmin Ltd. (NYSE:GRMN) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 31 hedge fund portfolios held Garmin Ltd. (NYSE:GRMN) at the end of the second quarter which was 24 in the previous quarter. While we acknowledge the potential of Garmin Ltd. (NYSE:GRMN) 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 Garmin Ltd. (NYSE:GRMN) and shared Jim Cramer’s stocks to buy and sell. 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.