Bronte Capital, an investment management company, released its “Amalthea Fund” third-quarter 2024 investor letter. A copy of the letter can be downloaded here. The fund was down 3.72% for the quarter vs. +2.54% for the MSCI ACWI (in $A). It was down 5.59% in September vs. -0.35% for the index. The market rose in the third quarter, reaching new peaks, with a minor dip in late August and early September. In addition, you can check the top 5 holdings of the fund to know its best picks in 2024.

Amalthea Fund highlighted stocks like Summit Therapeutics Inc. (NASDAQ:SMMT) in the Q3 2024 investor letter. Summit Therapeutics Inc. (NASDAQ:SMMT) engages in the discovery, development, and commercialization of antibiotic medicines. The one-month return of Summit Therapeutics Inc. (NASDAQ:SMMT) was -0.15%, and its shares gained 925.64% of their value over the last 52 weeks. On November 19, 2024, Summit Therapeutics Inc. (NASDAQ:SMMT) stock closed at $20.00 per share with a market capitalization of $14.749 billion.

Amalthea Fund stated the following regarding Summit Therapeutics Inc. (NASDAQ:SMMT) in its Q3 2024 investor letter:

"The short book hurt us in many ways. Several deeply junky stocks went up – and one – Summit Therapeutics Inc. (NASDAQ:SMMT) – in which we may have made a mistake – stood out above all. Even excluding Summit, our short book would have faced challenges in September, but this position exacerbated the difficulties.

A laboratory employee in a sterile environment inspecting a microscope focused on a Clostridioides difficile infection sample.

Summit Therapeutics Inc. (NASDAQ:SMMT) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 21 hedge fund portfolios held Summit Therapeutics Inc. (NASDAQ:SMMT) at the end of the third quarter which was 17 in the previous quarter. While we acknowledge the potential of Summit Therapeutics Inc. (NASDAQ:SMMT) 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.