Optimism of the markets drives S&P 500 into positive territory – Veeva Systems in focus

The investment advisory firm Ithaka Group has released its investor letter for the "Ithaka US Growth Strategy" for the second quarter of 2024. The global market was characterized by optimism, supported by the expectation of a more accommodative monetary policy from the Federal Reserve and ongoing developmental advances in the field of artificial intelligence. This positive market sentiment led to a 4.3% rise in the S&P 500 for the quarter and a 15.3% increase year-to-date. The Russell 1000 Growth (R1000G) gained 8.3% for the quarter, recording a 21.7% increase since the beginning of the year. Meanwhile, the Dow declined by 1.7% for the quarter but has risen by 3.7% year-to-date. In the second quarter, the portfolio of the "Ithaka US Growth Strategy" underperformed expectations, achieving a return of 4.2% (gross), compared to an 8.3% increase for the Russell 1000 Growth (R1G). Stock selection was the main reason for the portfolio’s underperformance during this period. Special attention in the investor letter was given to Veeva Systems Inc. The company offers cloud-based software solutions for the life sciences industry. Last month, Veeva Systems Inc. recorded a return of 16.10%. However, over the past 52 weeks, its stock has lost 3.01% of its value. As of September 6, 2024, Veeva Systems Inc. closed with a stock price of $215.31 and a market capitalization of $34.866 billion. Veeva Systems Inc. was not among the 31 most popular stocks among hedge funds, yet 50 hedge funds held shares in the company at the end of the quarter, compared to 46 in the previous quarter. Despite the recognized potential of Veeva Systems Inc., Ithaka Group’s confidence remains stronger in AI stocks, as they promise higher returns in a shorter time frame. For investors seeking a promising AI stock at an attractive price, Ithaka Group points to an alternative, more affordable option. Other analysts, such as Conestoga Capital Advisors and Ensemble Capital Management, have also acquired shares in Veeva Systems Inc. and believe that the company is gaining market traction. Further insights into investor letters from hedge funds and leading investors are available on Ithaka Group's investors page.