Third Point Management, a New York-based investment advisor, released its first-quarter 2024 investor letter. A copy of the same can be downloaded here. The Third Point Offshore Fund returned 7.8% net in the first quarter compared to a 10.6% return for the S&P 500 INDEX (TR) and a 9.0% return for the MSCI WORLD INDEX (TR). The fund posted solid returns in the first quarter, driven by robust performance from large-cap tech companies and continued gain from Bath & Body Works and Vistra. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Third Point Management featured stocks like Advance Auto Parts, Inc. (NYSE:AAP) in the first quarter 2024 investor letter. Based in Raleigh, North Carolina, Advance Auto Parts, Inc. (NYSE:AAP) is an automotive replacement parts and accessories provider. On May 10, 2024, Advance Auto Parts, Inc. (NYSE:AAP) stock closed at $75.03 per share. One-month return of Advance Auto Parts, Inc. (NYSE:AAP) was 6.43%, and its shares lost 38.93% of their value over the last 52 weeks. Advance Auto Parts, Inc. (NYSE:AAP) has a market capitalization of $4.473 billion.
Third Point Management stated the following regarding Advance Auto Parts, Inc. (NYSE:AAP) in its first quarter 2024 investor letter:
“We initiated a position in Advance Auto Parts, Inc. (NYSE:AAP) in Q4 2023 at an attractive entry point, after the third consecutive guidance cut of the year overshadowed new CEO Shane O’Kelly’s strategic plans to course correct the business. Advance operates in the highly attractive auto aftermarket industry, which has proven resilient in various consumer cycles and is currently supported by increasing vehicle complexity, a growing and aging carpark, and supply and affordability challenges.
While Advance has significantly underperformed peers across key KPIs over the past several years, our work suggests that many of these shortcomings aren’t structural. Feedback has been consistent that while the Advance brand is strong, a lack of relevant industry experience in key roles has led to years of inconsistent execution that has snowballed over time. We are confident that a portion of the performance gap vs. peers can be closed with new leadership and advisors in place…” (Click here to read the full text)
A manufacturing facility floor filled with an array of automotive parts and accessories.
Advance Auto Parts, Inc. (NYSE:AAP) is not on our list of 30 Most Popular Stocks Among Hedge Funds. At the end of the fourth quarter, Advance Auto Parts, Inc. (NYSE:AAP) was held by 32 hedge fund portfolios, compared to 34 in the previous quarter, according to our database. In addition, please check out our hedge fund investor letters Q1 2024 page for more investor letters from hedge funds and other leading investors.
We discussed Advance Auto Parts, Inc. (NYSE:AAP) in another article and shared Michael Burry’s top stock picks for 2024. In the recent investor letter, Palm Valley Capital Fund shared the rationale for selling its stake in Advance Auto Parts, Inc. (NYSE:AAP).
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Disclosure: None. This article is originally published at Insider Monkey.
