Vulcan Value Partners, an investment management firm, recently shared its fourth-quarter 2024 investor letter. In summary, the U.S. economy showed unexpected strength, with large-cap stocks boosting the equities markets. Although inflation remains high, it has declined over the year. Notably, U.S. stocks outperformed most global markets. For the quarter, Vulcan’s Focus and Focus Plus strategies did particularly well, while the Small Cap strategy lagged behind. Yet, all strategies ended the year on a positive note.
Here’s how each strategy performed in the fourth quarter:
- Large Cap Composite: -0.1% net of fees
- Small Cap Composite: -7.3% net
- Focus Composite: 6.3% net
- Focus Plus Composite: 7.4% net
- All-Cap Composite: -2.5% net
One of Vulcan’s highlighted stocks was Live Nation Entertainment, a live events company based in Beverly Hills. Over the past year, its shares rose nearly 49%, closing at $135.61 with a market cap of $31.27 billion as of January 17, 2025.
In its letter, Vulcan mentioned, “We sold Live Nation during the quarter, and it was also a material contributor. Consumer spending on live entertainment remains exceptionally strong. We hope for favorable outcomes regarding ongoing antitrust discussions involving Live Nation and Ticketmaster. Overall, it was a great investment, and we decided to invest in more discounted companies.”
Currently, Live Nation isn’t listed as one of the top 30 most popular stocks among hedge funds, with 44 hedge funds holding it by the end of the third quarter, down from 50 in the previous quarter. Despite its potential, Vulcan favors AI stocks for greater returns in a shorter time frame. They suggest looking into promising AI stocks that are more affordable and have significant growth potential.
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