The London Company, an investment management company, released “The London Company Large Cap Strategy” third quarter 2024 investor letter. A copy of the letter can be downloaded here. U.S. equities increased during the third quarter, with most major indices recording mid-single-digit gains. The broader market, represented by the Russell 3000 Index, rose by 6.2%. Notably, there was a shift from large-cap growth stocks to small-cap and value styles. The portfolio increased 8.2% (8.1% net) during the quarter compared to a 6.1% increase for the Russell 1000 Index. Both stock selection and sector exposure were tailwinds to the relative performance of the strategy. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.
The London Company Large Cap Strategy highlighted stocks like FedEx Corporation (NYSE:FDX) in the third quarter 2024 investor letter. Founded in 1971, FedEx Corporation (NYSE:FDX) offers transportation, e-commerce, and business services. The one-month return of FedEx Corporation (NYSE:FDX) was 4.22%, and its shares gained 14.19% of their value over the last 52 weeks. On November 5, 2024, FedEx Corporation (NYSE:FDX) stock closed at $275.42 per share with a market capitalization of $67.291 billion.
The London Company Large Cap Strategy stated the following regarding FedEx Corporation (NYSE:FDX) in its Q3 2024 investor letter:
“FedEx Corporation (NYSE:FDX) – Due to a post-earnings swoon in late September, FDX underperformed the market. FDX has been successful in cutting costs over the past year, but weaker revenue has been a headwind in recent quarters. Both United Parcel Service (UPS) and FDX have experienced customers trading down to cheaper, less time sensitive shipping options. Separately, little news regarding the possible spin-off of FedEx Freight to shareholders limited any gains in the shares. We continue to own shares as we believe FDX owns a network that is almost impossible to duplicate, and a source of competitive advantage.”
A driver unloading packages from a van for a time-critical delivery.
FedEx Corporation (NYSE:FDX) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 59 hedge fund portfolios held FedEx Corporation (NYSE:FDX) at the end of the second quarter which was 56 in the previous quarter. While we acknowledge the potential of FedEx Corporation (NYSE:FDX) 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 FedEx Corporation (NYSE:FDX) and shared Longleaf Partners Fund’s views on the company. 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.