Should You Hold IAC?
Investment management company First Pacific Advisors recently released its “FPA Queens Road Small Cap Value Fund” second quarter 2024 investor letter. A copy of the letter can be downloaded here. In the second quarter, the fund returned -2.62% compared to a -3.64% return for the Russell 2000 Value Index. In the first half of 2024, the fund returned 0.65% versus -0.85% for the index. In addition, you can check the fund's top 5 holdings to determine its best picks for 2024.
FPA Queens Road Small Cap Value Fund 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 0.69%, and its shares lost 7.51% of their value over the last 52 weeks. On August 13, 2024, IAC Inc. (NASDAQ:IAC) stock closed at $50.71 per share with a market capitalization of $4.367 billion.
FPA Queens Road Small Cap Value Fund stated the following regarding IAC Inc. (NASDAQ:IAC) in its Q2 2024 investor letter:
"IAC Inc. (NASDAQ:IAC) is a holding company helmed by Barry Diller and Joey Levin. IAC’s model is to incubate digital businesses and then spin them off tax free. Past spinoffs include Ticketmaster, Expedia, Tripadvisor and Match.com. IAC invests opportunistically and generally runs its businesses for growth, keeping margins low and minimizing taxes. IAC’s current collection of businesses are eclectic, including DotDash Meredith (websites and magazines), Turo (AirBnB for cars), Care.com, Vivian (job board for registered nurses), and 20% and 84% of the publicly traded shares of MGM and ANGI respectively. We believe these pieces are worth significantly more in aggregate than IAC’s share price and that management will work to maximize that value for shareholders."
A modern digital device being used to access the content & services of the company.
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.
In another article, we discussed IAC Inc. (NASDAQ:IAC) and shared Alphyn Capital Management's views on the company. 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.