Third Point Management, a New York-based investment advisor, released its second-quarter 2024 investor letter. A copy of the letter can be downloaded here. The Third Point Offshore Fund returned 1.8% net in the second quarter compared to a 4.3% return for the S&P 500 INDEX (TR) and a 2.8% return for the MSCI WORLD INDEX (TR). In the first half of 2024, the Offshore Fund made profits across all strategies, achieving a 9.8% net return. Over the previous 12 months, the fund yielded a 17.0% net return. Although technology businesses accounted for a major portion of returns over this period, much of the portfolio is invested in various sectors, such as utilities, industrials, consumer, and healthcare. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Third Point Management highlighted stocks like Intercontinental Exchange, Inc. (NYSE:ICE) in the second quarter 2024 investor letter. Intercontinental Exchange, Inc. (NYSE:ICE) offers market infrastructure, data services, and technology solutions for financial institutions, corporations, and government entities. The one-month return of Intercontinental Exchange, Inc. (NYSE:ICE) was 5.85%, and its shares gained 36.18% of their value over the last 52 weeks. On August 23, 2024, Intercontinental Exchange, Inc. (NYSE:ICE) stock closed at $160.01 per share with a market capitalization of $91.868 billion.
Third Point Management stated the following regarding Intercontinental Exchange, Inc. (NYSE:ICE) in its Q2 2024 investor letter:
“During Q2, we added to our position in Intercontinental Exchange, Inc. (NYSE:ICE). We originally invested in ICE in April 2023 when the FTC’s challenge to the company’s proposed acquisition of Black Knight impacted the share price. While the deal overhang has lifted, we believe a re-rating opportunity from a structural and cyclical acceleration of growth is still ahead. Importantly, we expect that AI will drive new growth opportunities across most of ICE’s businesses, extending the runway for value creation.
ICE is a collection of dominant information services and exchange assets that automate diverse and large asset classes (Energy, Mortgages, Fixed Income, Rates and Equities) while producing vast amounts of proprietary data. CEO Jeff Sprecher has led ICE for over 20 years. Under his visionary leadership, the company has compounded organic revenue and EPS at ~5% and ~15%, respectively, and adopted new modalities through organic investment and strategic acquisitions, most notably creating the flagship clusters of Energy and Mortgage, franchises we believe are of very high business quality. On the horizon, we expect an acceleration of growth to a consistent low double digit organic algorithm in these businesses, and a re-rating of the stock as price follows value creation…” (Click here to read the full text)
A panoramic view of a busy stock exchange, with a large digital display board above it.
Intercontinental Exchange, Inc. (NYSE:ICE) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 70 hedge fund portfolios held Intercontinental Exchange, Inc. (NYSE:ICE) at the end of the second quarter which was 64 in the previous quarter. While we acknowledge the potential of Intercontinental Exchange, Inc. (NYSE:ICE) 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 Intercontinental Exchange, Inc. (NYSE:ICE) and shared largest publicly traded financial companies in the US. 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.
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