Lee Munder Capital Group Investments, more commonly known as LMCG Investments, LLC, is an independent, employee-owned investment management company. Established in 2000 as Lee Munder Capital Group, it has 25 years of average investment experience and typically deals with alternative investments and wealth management. Specifically, the globally focused investment management firm provides a diverse array of investment strategies tailored to institutional investors, financial advisors, and private clients. The firm specializes in global equity, fixed income, and absolute return or relative value credit strategies. With a client-first approach, LMCG prioritizes aligning its interests with those of its investors, emphasizing transparency and long-term value creation. By leveraging its expertise and disciplined investment approach, the firm aims to deliver strong financial performance and best-in-class investment solutions. Founded and managed by Lee Munder himself, the firm has established a strong reputation in the financial industry.
As of March 2024, LMCG Investments manages discretionary assets totaling approximately $5.5 billion, serving 1,527 clients. The firm reported $1.63 billion in managed 13F securities for the fourth quarter of 2024, with its top 10 holdings making up over 28% of its portfolio. LMCG’s strategic investment approach and diversified portfolio reflect its commitment to delivering strong financial performance and value to its clients.
Munder also established Lee Munder Venture Partners LLC and founded Munder Capital Management. With extensive experience in investment management, Munder has held key positions, including Vice President at Loomis, Sayles & Co. LP. Currently, he serves as Chairman at IC Real Tech, an innovation-driven video technology company. Lee Munder holds an MBA from Wayne State University and an undergraduate degree from Ohio State University. Given this, we will take a look at top 10 stocks in Lee Munder's portfolio.
Our Methodology
The stocks discussed below were picked from LMCG’s 13F filings for the fourth quarter of 2024. They have been compiled in the ascending order of the hedge fund’s stake in them as of December 31, 2024. To provide readers with a more holistic analysis of each stock, we have included the hedge fund sentiment regarding each company using data from over 900 hedge funds tracked by Insider Monkey in the fourth quarter of 2024.
Why are we interested in the stocks that hedge funds show interest in? The reason is simple: our research has shown that we can outperform the market by imitating the latest top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
NVIDIA (NVDA) – The Next Big Play? Autos Are the New AI Goldmine!
A close-up of a colorful high-end graphics card being plugged in to a gaming computer.
NVIDIA Corporation (NASDAQ:NVDA) is a U.S.-based multinational technology company with its headquarters in Santa Clara, California, and is legally incorporated in Delaware. In November 2024, the company reported strong sales figures for the third quarter that ended on October 27, 2024, of $35.1 billion, up nearly 94% from a year ago. Similarly, earnings per share were announced at $0.81, increasing by a solid 103% from the same quarter in 2023. NVIDIA announced its next quarterly cash dividend payout of $0.01 per share on December 27, 2024.
These figures were driven by the global shift to AI and subsequently to NVIDIA computing. Jensen Huang, the founder and CEO of NVIDIA Corporation (NASDAQ:NVDA), emphasized that "AI is transforming every industry, company, and country," highlighting how businesses are leveraging agentic AI to reshape workflows. He noted that advancements in physical AI are driving significant investments in industrial robotics and that even national governments around the world are increasingly recognizing the importance of developing their own AI capabilities and infrastructure.
Argus Research has reiterated its BUY rating for Nvidia Corporation (NASDAQ:NVDA), setting a 12-month price target of $175. Although Nvidia competes with major semiconductor and AI hardware companies such as AMD and Qualcomm, which focus on gaming and expanding into AI respectively, its advanced technology and broad product portfolio provide a strong competitive edge. For the quarter ending in January 2025, the company anticipates revenue between $36.8 billion and $38.3 billion, reflecting a 70% year-over-year increase. Despite heavy competition from DeepSeek, analysts remain confident, with no downward revisions in earnings projections.
At the end of September 2024, 193 hedge funds tracked by Insider Monkey held stakes in Nvidia Corporation (NASDAQ:NVDA), showing massive improvement from 179 hedge funds in the previous quarter. These stakes hold a consolidated value of roughly $49.06 billion.
Alger Spectra Fund stated the following regarding NVIDIA Corporation (NASDAQ:NVDA) in its Q4 2024 investor letter:
“NVIDIA Corporation (NASDAQ:NVDA) is a leading supplier of graphics processing units (GPUs) for a variety of end markets, such as gaming, PCs, data centers, virtual reality, and high-performance computing. The company is leading in most secular growth categories in computing, and especially artificial intelligence and super-computing parallel processing techniques for solving complex computational problems. In our view, Nvidia’s computational power is a critical enabler of AI and therefore essential to AI adoption. Shares contributed to performance during the quarter, driven by strong demand for its data center products, especially the Hopper H200 chips, which generated double-digit billions in revenue, marking the fastest product ramp in the company’s history. Management provided fiscal fourth-quarter revenue guidance above analyst estimates, along with resilient operating margins supported by robust demand and limited competition. In our view, Nvidia’s leadership in scaling AI infrastructure, including advancements in inference and test-time scaling (i.e., reasoning during inference), is driving adoption among enterprises and startups, providing continued demand for its high-performance chips and software solutions. As older-generation chips are repurposed for inference and new clusters are deployed, we believe Nvidia is well-positioned to capitalize on growing compute needs across AI applications.”
Overall NVDA ranks 7th on our list of Lee Munder Capital Group's top stock picks. While we acknowledge the potential of NVDA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than NVDA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
