Columbia Threadneedle Investments, an investment management company, released its Columbia Contrarian Core Fund second quarter 2024 investor letter. A copy of the letter can be downloaded here. Columbia Contrarian Core Fund (Institutional Class shares) returned 5.39% (net of fees) in the quarter compared to the Russell 1000 Index’s 3.57% return. Favorable stock selection and positive sector allocation drove the fund’s outperformance in the quarter. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Columbia Contrarian Core Fund highlighted stocks like Sysco Corporation (NYSE:SYY) in the second quarter 2024 investor letter. Sysco Corporation (NYSE:SYY) markets and distributes various food and related products to the food service or food-away-from-home industry. The one-month return of Sysco Corporation (NYSE:SYY) was -0.01%, and its shares gained 18.03% of their value over the last 52 weeks. On September 26, 2024, Sysco Corporation (NYSE:SYY) stock closed at $77.96 per share with a market capitalization of $38.319 billion.
Columbia Contrarian Core Fund stated the following regarding Sysco Corporation (NYSE:SYY) in its Q2 2024 investor letter:
“Sysco Corporation (NYSE:SYY) – Sysco, one of the world’s largest food distributors, reported earnings at the end of April that disappointed investors. While sales and gross profit increased year-over-year, quarterly revenue of $19.38 billion missed analysts’ consensus estimates. Additionally, management reported that year-over-year traffic to restaurants came in lower, which negatively impacted bottom-line results. All together, this news sent shares lower. The company hosted an investor day a month later toward the end of May, and while analyst sentiment seemed relatively positive following the event, it still couldn’t save the stock from continuing its negative trajectory.”
A butcher shop showcasing fresh meats and seafood for customers.
Sysco Corporation (NYSE:SYY) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 37 hedge fund portfolios held Sysco Corporation (NYSE:SYY) at the end of the second quarter which was 46 in the previous quarter. While we acknowledge the potential of Sysco Corporation (NYSE:SYY) 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 Sysco Corporation (NYSE:SYY) and shared the list of best beef stocks to buy. Diamond Hill Mid Cap Strategy initiated a position in Sysco Corporation (NYSE:SYY) in Q2 2024, as due to its strong business fundamentals. 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.