NVDA - O'Keefe Stevens Advisory Q2 2024 Investor Letter

2024-07-23 11:40:00 ET

Summary

• Continued hopes of near-term rate cuts drove a 3.9% gain in the S&P 500 in Q2.
• The S&P equal-weighted index again lagged its market cap-weighted counterpart, down ~2% in the quarter, displaying the concentrated and top-heavy nature of the rally.
• We initiated two new positions during the quarter: Alibaba and Perrigo.

Market Outlook

Continued hopes of near-term rate cuts drove a 3.9% gain in the S&P 500 in Q2, led by names you may have heard of - Nvidia ( NVDA ), which was the largest company in the world for a brief second. Microsoft, Alphabet, Amazon, and Meta saw their stocks rise 10%+ in the first half. These five stocks accounted for ~63% of the S&P 500's rally in the first half, led by Nvidia accounting for roughly half of the 63%. The S&P equal-weighted index again lagged its market cap-weighted counterpart, down ~2% in the quarter, displaying the concentrated and top-heavy nature of the rally....

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