Has Alphyn Capital Management Exited its Stake in IAC (IAC)?
Alphyn Capital Management, an investment management firm, released its second-quarter 2024 investor letter. A copy of the letter can be downloaded here. The Master Account of the fund returned -2.7% net in the second quarter compared to 4.3% for the S&P500 Index. As of June 30, 2024, the top ten holdings accounted for approximately 66% of the portfolio, and approximately 16% of the portfolio was held in cash. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Alphyn Capital Management highlighted stocks like IAC Inc. (NASDAQ:IAC), in the second quarter 2024 investor letter. IAC Inc. (NASDAQ:IAC) is a media and internet company. The one-month return of IAC Inc. (NASDAQ:IAC) was -2.16%, and its shares lost 30.74% of their value over the last 52 weeks. On July 10, 2024, IAC Inc. (NASDAQ:IAC) stock closed at $47.54 per share with a market capitalization of $4.093 billion.
Alphyn Capital Management stated the following regarding IAC Inc. (NASDAQ:IAC) in its Q2 2024 investor letter:
"Exiting IAC Inc. (NASDAQ:IAC) was a difficult decision because I value their management team. I have been encouraged by their success with the MGM investment, progress at DotDash, and the potential at Turo. The team has a strong focus on intelligent capital allocation. However, Angi continues to face significant challenges. Management is making commendable efforts to turn the business around and has restored profitability, but I cannot say with conviction that it will be successful. Additionally, I have begun to question IAC's overall strategy of consistently spinning off successful businesses. While this may address the holding company discount issue, IAC is often left with less successful or mature businesses to develop, and building a business is inherently risky with a high failure rate, but by design IAC chooses to embark on this difficult journey each time."
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IAC Inc. (NASDAQ:IAC) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 44 hedge fund portfolios held IAC Inc. (NASDAQ:IAC) at the end of the first quarter which was 44 in the previous quarter. While we acknowledge the potential of IAC Inc. (NASDAQ:IAC) 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.
We discussed IAC Inc. (NASDAQ:IAC) in another article and shared TimesSquare Capital U.S. Small Cap Growth Strategy's views on the company. Alphyn Capital Management stated in its Q2 2023 investor letter that IAC Inc. (NASDAQ:IAC) presents opportunities for patient investors. 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.