Does Millicom (TIGO) Retains Favorable Market Conditions?

Bonhoeffer Capital Management, an asset management company, released its first-quarter 2024 investor letter. A copy of the letter can be downloaded here. In the first quarter of 2024, the fund returned 5.9% net of fees compared to 5.7% returns for MSCI World ex-US, a broad-based index, and 5.3% return for the DFA International Small Cap Value Fund. The fund’s stocks have an average EV/EBITDA of 4.4 and a weighted average earnings/free cash flow yield of 12.3% as of March 31, 2024.  During the first quarter, the firm continued to replace slower-growing enterprises with durable, faster-growing firms. In addition, please check the fund’s top five holdings to know its best picks in 2024.

Bonhoeffer Capital Management highlighted stocks like Millicom International Cellular S.A. (NASDAQ:TIGO) in the first quarter 2024 investor letter. Millicom International Cellular S.A. (NASDAQ:TIGO) offers cable and mobile services. Millicom International Cellular S.A.'s (NASDAQ:TIGO) one-month return was 18.13%, and its shares gained 48.00% of their value over the last 52 weeks. On June 4, 2024, Millicom International Cellular S.A. (NASDAQ:TIGO) stock closed at $25.22 per share with a market capitalization of $4.317 billion.

Bonhoeffer Capital Management stated the following regarding Millicom International Cellular S.A. (NASDAQ:TIGO) in its first quarter 2024 investor letter:

"Millicom International Cellular S.A. (NASDAQ:TIGO) is one the remaining telecom firms in the portfolio as the company retains favorable market conditions including operating in many two player markets or in markets where the number of participants is getting smaller. With fewer players, telco firms can recover pricing power to offset the increasing cost of network construction and operations. In one of its key markets, Columbia, a large player has entered bankruptcy which will reduce the number of market players. Lati, Millicom’s tower spin-off, is progressing with investor interest from US tower firms such as SBA Communications. In addition, Millicom continues to implement cost cuts identified by the new CEO and team that was put in place by the new large shareholder, Xavier Niel."

A telecom tower in a city skyline indicating the companys expansive reach.

Millicom International Cellular S.A. (NASDAQ:TIGO) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 9 hedge fund portfolios held Millicom International Cellular S.A. (NASDAQ:TIGO) at the end of the first quarter which was 8 in the previous quarter. While we acknowledge the potential of Millicom International Cellular S.A. (NASDAQ:TIGO) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

In another article, we discussed Millicom International Cellular S.A. (NASDAQ:TIGO) and shared Longleaf Partners Global Fund's views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q1 2024 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.