Rowan Street Capital, an investment management company, released its second-quarter 2024 investor letter. A copy of the letter can be downloaded here. The fund generated a +26.2% (net of fees) return in the first half of the year surpassing the +15.3% return for the S&P 500 index in the same period. The fund has generated a net return of +43.2% over the past 12 months, ending June 30. This figure outperforms the S&P 500’s +24.6% return. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.
Rowan Street Capital highlighted stocks like The Trade Desk, Inc. (NASDAQ:TTD) in its Q2 2024 investor letter. Headquartered in Ventura, California, The Trade Desk, Inc. (NASDAQ:TTD) is a technology company that offers a self-service cloud-based platform. The one-month return of The Trade Desk, Inc. (NASDAQ:TTD) was 3.37%, and its shares gained 15.93% of their value over the last 52 weeks. On September 6, 2024, The Trade Desk, Inc. (NASDAQ:TTD) stock closed at $100.31 per share with a market capitalization of $49.31 billion.
Rowan Street Capital stated the following regarding The Trade Desk, Inc. (NASDAQ:TTD) in its Q2 2024 investor letter:
“We have owned The Trade Desk, Inc. (NASDAQ:TTD) for a little over 4 years now, opportunistically establishing a position in March of 2020 at a cost basis of $17.40 (split-adjusted). Since then, TTD has appreciated nearly sixfold, delivering an annualized return of approximately 55%. These are indeed remarkable results, but it’s important to recognize that this journey has been far from a smooth ride—much like many of our other investments. Since its public debut in 2017, the stock has experienced several significant drawdowns, with the most notable occurring in 2022 when it declined by over 60% (see below).
As we have previously discussed in relation to our investments in Meta and Spotify, one would have to be comfortable with sitting through these dramatic drawdowns and keeping their emotions in check in order to realize the long-term rewards of compounding that this company had delivered…” (Click here to read the full text)
A large array of computer screens and tech equipment representing the technology company’s self-service cloud-based platform.
The Trade Desk, Inc. (NASDAQ:TTD) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 46 hedge fund portfolios held The Trade Desk, Inc. (NASDAQ:TTD) at the end of the second quarter which was 43 in the previous quarter. The Trade Desk, Inc. (NASDAQ:TTD) delivered $585 million in revenues, representing 26% year over year increase. While we acknowledge the potential of The Trade Desk, Inc. (NASDAQ:TTD) 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 The Trade Desk, Inc. (NASDAQ:TTD) and shared Parnassus Mid Cap Fund’s views on the company. In Q1 2024 investor letter, Rowan Street Capital highlighted The Trade Desk, Inc. (NASDAQ:TTD) and explained why it held onto the stock despite its overvaluation. 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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