Night Watch Investment Management, an investment management company, released its fourth quarter 2024 investor letter. A copy of the letter can be downloaded here. In the fourth quarter the fund LP depreciated by -2.92% net of fees and ended the quarter at 10.30%. In the fourth quarter of 2024, the market experienced significant volatility. The initial excitement following the US elections quickly gave way to discouragement as rising inflation figures prompted the Federal Reserve to revise their interest rate cut expectations for 2025 downward. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Night Watch Investment Management highlighted stocks like Remitly Global, Inc. (NASDAQ:RELY), in the fourth quarter 2024 investor letter. Remitly Global, Inc. (NASDAQ:RELY) offers digital financial services for immigrants, their families, and other citizens. The one-month return of Remitly Global, Inc. (NASDAQ:RELY) was 10.84%, and its shares gained 26.14% of their value over the last 52 weeks. On January 7, 2025, Remitly Global, Inc. (NASDAQ:RELY) stock closed at $23.21 per share with a market capitalization of $4.597 billion.
Night Watch Investment Management stated the following regarding Remitly Global, Inc. (NASDAQ:RELY) in its Q4 2024 investor letter:
“The US consumer has been in a 2-year affordability crisis. As a result, there are many quality consumer businesses available at very attractive prices. However, we don’t currently see a reason why US consumer spending should rebound from its current depressed level. We will therefore limit ourselves to companies with company-specific growth drivers. An example is Remitly Global, Inc. (NASDAQ:RELY) which we acquired around $13 after the stock sold off excessively on an earnings miss in Q1, despite the 30% growth on the back of market share gains. Valuation is very attractive when considering that marketing expenses are a discretionary reinvestment into the business.”
A senior banker shaking hands with migrant customers in a corporate boardroom.
Remitly Global, Inc. (NASDAQ:RELY) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 29 hedge fund portfolios held Remitly Global, Inc. (NASDAQ:RELY) at the end of the third quarter which was 29 in the previous quarter. Remitly Global, Inc.’s (NASDAQ:RELY) third quarter revenue increased 39% to $336.5 million. While we acknowledge the potential of Remitly Global, Inc. (NASDAQ:RELY) 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 Remitly Global, Inc. (NASDAQ:RELY) and shared the list of stocks Jeff Bezos is buying. In addition, please check out our hedge fund investor letters Q4 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.