O'Keefe Stevens Advisory Q4 2024 Investor Letter

2025-02-04 09:15:00 ET

Summary

• Nvidia's robust performance in 2024, driven by strong demand and new GPU launches, resulted in a 170% stock appreciation.
• Five Point Holdings and AerCap outperformed expectations, with Five Point up 23% and AerCap up 29.8%, supported by strong business fundamentals.
• 2025 top picks include Beyond Inc. and Donnelley Financial, both facing excessive selling pressure unrelated to fundamentals, presenting attractive investment opportunities.
• Emphasis on understanding shareholder dynamics and market conditions to identify better entry points and long-term investment opportunities.

2024 was an eventful year, with our largest position, Nvidia ( NVDA ), appreciating over 170% as business remained robust, to say the least. Nvidia continues to face a good problem: product demand significantly outpaces supply. Their competitive advantage keeps widening as they announce and launch advanced GPUs and data center infrastructure. In March 2024, Nvidia revealed the Blackwell GPU architecture, introducing the B100 and B200 data center accelerators. These GPUs achieved substantial performance gains for AI workloads, surpassing the prior Hopper-based H100 GPUs. The B100 featured enhanced tensor cores and memory bandwidth, enabling faster AI model training and inference. You’ll notice how similar paragraph 1 sounds in our Q4 2023 and Q4 2024 letters....

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