Alluvium Asset Management, an asset management company, released its “Conventum – Alluvium Global Fund” fourth-quarter 2024 investor letter. A copy of the letter can be downloaded here. In the quarter, The Fund was up 1.3% in EUR terms and 5.4% in AUD terms but down 5.9% in USD terms. In addition, please check the fund’s top five holdings to know its best picks in 2024.

In its fourth quarter 2024 investor letter, Conventum – Alluvium Global Fund emphasized stocks such as H&R Block, Inc. (NYSE:HRB). H&R Block, Inc. (NYSE:HRB) provides assisted and do-it-yourself (DIY) tax return preparation services.  The one-month return of H&R Block, Inc. (NYSE:HRB) was -0.23%, and its shares gained 10.19% of their value over the last 52 weeks. On March 6, 2025, H&R Block, Inc. (NYSE:HRB) stock closed at $53.10 per share with a market capitalization of $7.107 billion.

Conventum – Alluvium Global Fund stated the following regarding H&R Block, Inc. (NYSE:HRB) in its Q4 2024 investor letter:

"H&R Block, Inc. (NYSE:HRB) (down 16.3%), reported first quarter earnings largely in line with our expectations, and re-affirmed its FY25 guidance. We were also pleasantly surprised to hear its mobile banking platform, Spruce, has now grown to more than USD 1b in customer deposits. But the share price fell 6.6% on the day. Then a few days later media reports suggested that Musk’s DOGE was considering creating a mobile app for tax returns. It seems that on that news its share price fell 8.2% (and peer Intuit fell 5.1%). H&R Block already offers free tax returns, and we can’t see any new US government provided mobile app as having any material implications to its business. With the business being even better priced, and with it offering an 8.0% earnings yield and being at a small discount to our valuation, we are happy holders at 4.3% of the Fund."

An experienced tax accountant reviewing paper work on their desk.

H&R Block, Inc. (NYSE:HRB) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 27 hedge fund portfolios held H&R Block, Inc. (NYSE:HRB) at the end of the fourth quarter compared to 29 in the third quarter. In the second quarter of fiscal 2025, H&R Block, Inc. (NYSE:HRB) generated $179 million in revenue, which was flat compared to the prior year's quarter. While we acknowledge the potential of H&R Block, Inc. (NYSE:HRB) 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 H&R Block, Inc. (NYSE:HRB) and shared Conventum – Alluvium Global Fund's views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q4 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.