The London Company, an investment management company, released “The London Company Mid Cap Strategy” third quarter 2024 investor letter. A copy of the letter can be downloaded here. U.S. equities experienced an upward trend in the third quarter, with most major indices recording mid-single-digit gains. Notable market changes characterized this period. Despite these challenges, the stock market concluded the quarter on a positive note. The portfolio returned 7.9% (7.8% net) during the quarter compared to a 9.2% increase for the Russell Midcap Index. Both stock selection and sector exposure were modest headwinds to relative performance. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.
The London Company Mid Cap Strategy highlighted stocks like Dollar Tree, Inc. (NASDAQ:DLTR) in the third quarter 2024 investor letter. Dollar Tree, Inc. (NASDAQ:DLTR) is a discount retailer that operates in Dollar Tree and Family Dollar segments. The one-month return of Dollar Tree, Inc. (NASDAQ:DLTR) was -10.02%, and its shares lost 45.07% of their value over the last 52 weeks. On November 6, 2024, Dollar Tree, Inc. (NASDAQ:DLTR) stock closed at $62.41 per share with a market capitalization of $13.418 billion.
The London Company Mid Cap Strategy stated the following regarding Dollar Tree, Inc. (NASDAQ:DLTR) in its Q3 2024 investor letter:
“Dollar Tree, Inc. (NASDAQ:DLTR) – DLTR continues to face pressures from industry-wide issues including weakness in the discretionary category and the ongoing battle with cost inflation. While dollar stores remain a defensible concept, they are not immune to a weakening consumer. In the company’s 2Q report, DLTR materially reduced EPS guidance for the year, which is the main reason for stock underperformance. We believe the stock trades at an attractive valuation today given the optionality present in the business. The Dollar Tree banner is only in early innings on its multi-price point conversion, and a potential sale of the Family Dollar business would structurally improve fundamentals and returns of the company.”
A shopper browsing through a discount retailers merchandise aisle filled with a wide variety of items.
Dollar Tree, Inc. (NASDAQ:DLTR) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 38 hedge fund portfolios held Dollar Tree, Inc. (NASDAQ:DLTR) at the end of the second quarter which was 39 in the previous quarter. In the second quarter, Dollar Tree, Inc.’s (NASDAQ:DLTR) net sales increased 0.7% year-over-year to $7.4 billion. While we acknowledge the potential of Dollar Tree, Inc. (NASDAQ:DLTR) 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 Dollar Tree, Inc. (NASDAQ:DLTR) and shared the list of best grocery stocks to invest in. Dollar Tree, Inc. (NASDAQ:DLTR) detracted from the performance of Madison Mid Cap Fund in Q3 2024. 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.