Investment management company Vulcan Value Partners recently released its third-quarter 2024 investor letter. A copy of the letter can be downloaded here. Although the firm is pleased with the results, the quarterly results were mixed during the quarter. The firm capitalized on stock price volatility by allocating capital to companies with better price-to-value ratios. In the quarter, the fund’s Large Cap Composite returned 8.2% net of fees and expenses, the Small Cap Composite returned 9.1% net, the Focus Composite returned 5.6% net, the Focus Plus composite returned 5.9% and the All-Cap Composite returned 8.1% net. For more information on the fund’s best picks in 2024, please check its top five holdings.
Vulcan Value Partners highlighted stocks like PROG Holdings, Inc. (NYSE:PRG) in the third quarter 2023 investor letter. Based in Draper, Utah, PROG Holdings, Inc. (NYSE:PRG) is a financial technology holding company. The one-month return of PROG Holdings, Inc. (NYSE:PRG) was 1.39%, and its shares gained 69.58% of their value over the last 52 weeks. On October 16, 2024, PROG Holdings, Inc. (NYSE:PRG) stock closed at $49.50 per share with a market capitalization of $2.095 billion.
Vulcan Value Partners stated the following regarding PROG Holdings, Inc. (NYSE:PRG) in its Q3 2024 investor letter:
“PROG Holdings, Inc. (NYSE:PRG) is a lease-to-own provider of financing solutions for non-prime borrowers with a national retailer partner network. Recently, prime lenders have been tightening underwriting standards as consumer conditions tighten. These consumers have been turning to PROG Holdings which has increased company earnings and free cash flow.”
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PROG Holdings, Inc. (NYSE:PRG) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 25 hedge fund portfolios held PROG Holdings, Inc. (NYSE:PRG) at the end of the second quarter which was 18 in the previous quarter. While we acknowledge the potential of PROG Holdings, Inc. (NYSE:PRG) 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 addition, please check out our hedge fund investor letters Q3 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.