We recently compiled a list of the top 10 stocks for Peconic Hedge Fund: 191.50% over 3 years In this article, we’ll take a look at how Micron Technology, Inc. (NASDAQ:MU) stands in relation to other stocks.
Founded in 1997, Peconic Partners is a New York-based hedge fund manager led by William Harnish. The firm manages both its own capital and that of its clients using a long/short equity hedge fund strategy and employs a structured, consistent thematic investment approach, aiming to achieve positive returns over the long term, regardless of market conditions.
Peconic Partners’ stock selection approach is based on extensive experience. Peconic Partners’ investment strategy dates back more than 40 years, beginning with its predecessor firm. Peconic Partners’ long track record, history of capital appreciation, and past ability to generate alpha are testament to the vision, insight, and perseverance born of the firm’s experience.
William Harnish is Chief Investment Strategist for Peconic Partners. He ran Peconic Partners from the late 1970s until 1997, when the long-only business was sold to a privately held financial services company seeking to expand its asset management business. William Harnish and his partners, however, retained sole ownership of the hedging business. In December 2004, he and the current Peconic team founded Peconic Partners to continue the successful and disciplined hedge fund strategies that have been implemented since the late 1970s.
Mr. Harnish began his career in 1968 with Chase Manhattan Bank. He then joined Forstman Leff Associates (FLA) where he managed over $5 billion in assets and entered the hedge fund business in 1986. He sold FLA’s long-only business in 1997 and founded Peconic Partners in 2004 to focus exclusively on hedging products. William Harnish holds a BBA from Baruch College and is a Chartered Financial Analyst. He is active in philanthropy through the William F. Harnish Foundation and serves on the board of directors of the Baruch College Fund. His market insights have been featured in The Wall Street Journal and Barron’s.
In 2023, Peconic Partners LLC reclaimed the top spot on HedgeFollow’s Top 20 Best Performing Hedge Funds list. Despite challenges such as rising inflation and market volatility, Peconic Partners delivered an astounding three-year performance of 191.50%. This achievement is significant as many asset managers struggled with the unexpected market rally. While only 38% of large mutual funds outperformed the market in 2023 and long-short hedge funds saw minimal gains, Peconic Partners outperformed. The New York-based fund delivered four consecutive years of annualized gains of 38%, tripling the performance of the S&P 500.
The story continues
In late December 2023, Harnish increased his bets against the SPDR S&P 500 ETF Trust, taking short positions in expensive industrial and consumer goods stocks that were aggressively driving up prices. This reduced the fund’s net leverage from 50% to 33% in a matter of weeks, and it has continued to decline in early 2024.
Our Methodology
The companies mentioned in this article are among the top 10 Peconic hedge fund stocks at the end of the first quarter of 2024. We provide analyst ratings and other relevant information to help our readers fully understand these companies. We also mention the number of hedge fund investors in each company. Why pay attention to the stocks hedge funds invest in? Our research shows that mimicking the top picks of the best hedge funds can lead to market-beating returns. Our quarterly newsletter strategy, which selects 14 small and large stocks each quarter, has returned 275% since May 2014, beating the benchmark by 150 percentage points. (Learn more)
A close-up view of a computer motherboard with integrated semiconductor chips.
Micron Technology, Inc. (NASDAQ:MU)
Number of hedge fund holders: 115
Micron Technology, Inc. (NASDAQ:MU) ranks 4th among the top 10 holdings in the Peconic Hedge Fund. According to a Q1 2024 regulatory filing, Peconic Partners holds 775,000 shares of Micron Technology, Inc. (NASDAQ:MU) worth $91,364,750, making up 4.05% of the portfolio. Micron Technology, Inc. (NASDAQ:MU) is seeing increased profitability thanks to strong demand for memory and storage products. Micron Technology, Inc. (NASDAQ:MU) is seeing sales surge and beat earnings expectations for Q3 2024, and it plans to increase capital expenditures to meet this demand.
Financial research firm On the Pulse said that Micron Technology, Inc. (NASDAQ:MU) is undervalued, trading at less than 13.9 times earnings, but has the potential for significant revenue growth in 2025.
In its Q2 2024 investor letter, ClearBridge Value Equity Strategy said the following about Micron Technology, Inc. (NASDAQ:MU):
“Stock selection in the IT sector proved to be the largest contributor to performance, especially driven by the strong performance of Micron Technology, Inc. (NASDAQ:MU). The company, which designs, develops, manufactures and sells memory and storage products, continues to perform well along with other AI beneficiaries as demand for new and additional storage, which is essential for storing and training large-scale language AI models, is expected to continue to increase.”
Overall, MU ranks 4th on Peconic Partners’ Top 10 Stocks list. To see other stocks the hedge fund is watching, see “191.50% in 3 Years: Peconic Hedge Fund’s Top 10 Stocks.” While we recognize MU’s potential as an investment, we believe AI stocks have a better chance of delivering higher returns in the short term. If you’re looking for AI stocks that are more promising than MU but trade at less than 5x price to earnings, check out our report on the cheapest AI stocks.
Read next: Analyst sees new $25 billion ‘opportunity’ in NVIDIA, Jim Cramer recommended these 10 stocks in June.
Disclosures: None. This article was originally published on Insider Monkey.
