Investment advisory firm O’Keefe Stevens Advisory has released its third quarter 2024 investor letter. A copy of the letter can be downloaded here. In his Q3 letter, O’Keefe Stevens discussed his investment in Graftech (EAF). The company acknowledged that its investment thesis for the company was incorrect, raising questions about the short-term viability of the business. While this type of loss is difficult, the company hopes the lessons learned will help it avoid similar operations in the future. For more information on the fund’s top picks for 2024, check out our top 5 holdings.
O’Keefe Stevens Advisory highlighted stocks such as Southwest Gas Holdings (NYSE:SWX) in its Q3 2024 Investor Letter. Southwest Gas Holdings, Inc. (NYSE:SWX) is a natural gas distribution company. Southwest Gas Holdings, Inc. (NYSE:SWX) has a 1-month return of 0.89% and the stock has increased 26.03% of its value over the past 52 weeks. Southwest Gas Holdings (NYSE:SWX) stock closed at $74.42 per share on October 14, 2024, with a market cap of $5.337 billion.
In its Q3 2024 investor letter, O’Keefe Stevens Advisory said of Southwest Gas Holdings (NYSE:SWX):
“Southwest Gas Holdings, Inc. (NYSE:SWX) – In our revenue portfolio, we have initiated a position in Southwest Gas Corporation, a utility company in Nevada, Arizona, California, Utah, and Florida. Rising premiums have made insurance unaffordable, and the rise in natural disasters means future retirees are more likely to choose a location where they won’t have to worry about their home being destroyed or moving into a housing complex. It will be. Fixed incomes may no longer be sufficient, resulting in no retiring generation in the Southeast, and instead, population growth in the West will result in increased demand for electricity.
An anecdote with a friend is that he was unable to put a contract on a house in Florida because he couldn’t find insurance or the quote made the house unaffordable. Although Florida has favorable tax laws and an ostensibly lower cost of living compared to Arizona or Nevada, cost of living differences gradually erode these benefits and reverse these benefits. It is unlikely…” (Click here to read the full story)
Engineer inspecting pipeline equipment.
Southwest Gas Holdings, Inc. (NYSE:SWX) isn’t on the list of 31 most popular stocks among hedge funds. Our database shows that 15 hedge fund portfolios held Southwest Gas Holdings (NYSE:SWX) at the end of the second quarter, compared to 20 in the prior quarter. While we appreciate the investment potential of Southwest Gas Holdings (NYSE:SWX), we believe AI stocks have a better chance of delivering higher returns in a shorter time frame. If you’re looking for an AI stock with as much promise as NVIDIA, but trading at less than 5x earnings, check out our report on the cheapest AI stocks.
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In another article, we discussed Southwest Gas Holdings (NYSE:SWX) and shared a list of high-growth utility stocks to invest in. Additionally, for more information on investor letters from hedge funds, please visit our Hedge Fund Investor Letters Q3 2024 page. and other major investors.
Read next: Michael Burley sells these stocks, ushering in a new dawn for U.S. stocks.
Disclosure: None. This article was originally published on Insider Monkey.
