Here’s Why Upslope Capital Management Exited CACI International (CACI)

Upslope Capital Management, an investment management firm, released its second-quarter 2024 investor letter. The firm had a promising start in Q2 but ended with difficulties. A copy of the letter can be downloaded here. There was macro and geopolitical uncertainty, and markets were expensive. These have usually been in favor of Upslope’s strategy. The fund returned -2.6% (net) in Q2 compared to -3.5 % and +1.7% for the S&P Midcap 400 ETF (MDY) and HFRX Equity Hedge Index, respectively. YTD, the fund’s return was +2.8% (net) compared to +6.1% and +5.1% returns, respectively, for the indexes. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.

Upslope Capital Management highlighted stocks like CACI International Inc (NYSE:CACI) in its Q2 2024 investor letter. CACI International Inc (NYSE:CACI) provides expertise and technology to enterprise and mission customers. The one-month return of CACI International Inc (NYSE:CACI) was 3.68%, and its shares gained 28.59% of their value over the last 52 weeks. On July 17, 2024, CACI International Inc (NYSE:CACI) stock closed at $446.53 per share with a market capitalization of $9.956 billion.

Upslope Capital Management stated the following regarding CACI International Inc (NYSE:CACI) in its Q2 2024 investor letter:

"The Fund exited Ball Corp (BALL, leading beverage can producer), Tecan (TECN-SWX, lab automation and liquid handling) and CACI International Inc (NYSE:CACI) (CACI, defense/government IT contractor). Each of the three sales was for a different reason. Finally, for CACI, Upslope exited mostly due to the thesis playing out nicely and there simply being better opportunities today."

An IT technician in an open office with stacks of servers in the background.

CACI International Inc (NYSE:CACI) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 31 hedge fund portfolios held CACI International Inc (NYSE:CACI) at the end of the first quarter which was 42 in the previous quarter. While we acknowledge the potential of CACI International Inc (NYSE:CACI) 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 CACI International Inc (NYSE:CACI) and shared LVS Advisory's views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q2 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.