FMP
May 23, 2024 7:34 AM - Parth Sanghvi
The investment landscape in 2024 has seen significant shifts, with U.S. long/short equity hedge funds showcasing an 8% return since the beginning of the year. This performance has been largely driven by prominent stocks within the 'Magnificent 7' group, which collectively have returned 16% year-to-date, a testament to their robust market presence. However, a broader market expansion has spurred hedge funds to diversify their investment approaches.
While the inclination towards mega-cap tech stocks has generally waned, Apple (NASDAQ: AAPL) emerges as an outlier, growing in popularity among hedge funds and joining Goldman's 'Rising Stars' list. This list also welcomes newcomers like The Bank of New York Mellon (NYSE: BK), Discover Financial Services (NYSE: DFS), and S&P Global, highlighting a bullish stance on financial entities.
Amidst reducing mega-cap tech stock exposure, hedge funds are significantly increasing their stakes in companies pivotal to AI infrastructure development. This 'Phase 2' infrastructure is crucial for supporting the broader application and integration of AI technologies.
Investors should consider:
For investors looking to delve deeper into financial analytics, the Financial Ratios API offers a comprehensive tool for assessing a company's financial health and comparing it with competitors. Utilize this resource to make informed investment decisions based on key financial ratios like P/B ratio and ROE.
Oct 31, 2023 8:03 AM - Parth Sanghvi
Free cash flow to the firm (FCFF) and free cash flow to equity (FCFE) are two of the most important metrics used in financial modeling. Both metrics measure the amount of cash that is available to a company's shareholders and creditors, but there is a key difference between the two. FCFF measures...
Nov 25, 2023 6:39 AM - Parth Sanghvi
Choosing the Right Valuation Method: DCF vs. Comparable Companies Analysis Introduction: Valuation methods play a pivotal role in determining the fair value of a company, aiding investors in making informed investment decisions. Two commonly used methods, DCF Valuation and Comparable Companies A...
Dec 23, 2023 2:19 AM - Parth Sanghvi
Introduction: Discounted Cash Flow (DCF) analysis stands as a cornerstone in valuing investments, yet its efficacy is contingent upon various assumptions and methodologies. While a powerful tool, DCF analysis comes with inherent limitations and challenges that investors must acknowledge to make i...