Rocket Companies (RKT) Surged 32% YTD in 2024

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Seven Corners Capital, an investment management company, released its Q3 2024 investor letter. A copy of the letter can be downloaded here. Seven Corners Capital's composite portfolio finished Q3 2024 increasing around 14%, while the S&P 500 increased by approximately 21%. This represents a 7% underperformance in the first half of the year. Since 2020 (on a "Pandemic stacked basis"), the SCC Composite Portfolio has increased by ~127% compared to ~79% for the S&P 500, including all dividends received. This is an outperformance of 4,800 basis points compared to the index. In addition, you can check the fund’s top 5 holdings to know its best picks in 2024.

Seven Corners Capital highlighted stocks like Rocket Companies, Inc. (NYSE:RKT), in the third quarter 2024 investor letter. Rocket Companies, Inc. (NYSE:RKT) is a fintech holding company that offers mortgage lending, title and settlement services, and other financial technology services. The one-month return of Rocket Companies, Inc. (NYSE:RKT) was -14.29%, and its shares gained 23.33% of their value over the last 52 weeks. On December 9, 2024, Rocket Companies, Inc. (NYSE:RKT) stock closed at $13.32 per share with a market capitalization of $26.471 billion.

Seven Corners Capital stated the following regarding Rocket Companies, Inc. (NYSE:RKT) in its Q3 2024 investor letter:

"Rocket Companies, Inc. (NYSE:RKT), 9% position (Cost Basis: $8.24)

A businessperson using a laptop to review the details of a mortgage loan for a client.

Rocket Companies, Inc. (NYSE:RKT) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 27 hedge fund portfolios held Rocket Companies, Inc. (NYSE:RKT) at the end of the third quarter which was 21 in the previous quarter. While we acknowledge the potential of Rocket Companies, Inc. (NYSE:RKT) 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.