Artisan Partners, an investment management company, released its “Artisan Value Fund” third quarter 2024 investor letter. A copy of the letter can be downloaded here. US stocks recovered from brief periods of volatility to hit fresh all-time highs in Q3 due to incoming economic data supporting a soft landing, US inflation continuing to slow, and positive underlying profit growth. Against this backdrop, the portfolio generated a solid absolute return but trailed the Russell 1000® Value Index. Due to the absence of real estate and utility holdings, the switch to bond proxies was a performance headwind. The fund’s Investor Class ARTLX, Advisor Class APDLX, and Institutional Class APHLX returned 6.65%, 6.69%, and 6.69% respectively, in the third quarter compared to a 9.43% return for the Russell 1000 Value Index. In addition, you can check the top 5 holdings of the strategy to know its best picks in 2024.
Artisan Value Fund highlighted stocks like The PNC Financial Services Group, Inc. (NYSE:PNC) in the third quarter 2024 investor letter. The PNC Financial Services Group, Inc. (NYSE:PNC) is a diversified financial services company, headquartered in Pittsburgh, Pennsylvania. The one-month return of The PNC Financial Services Group, Inc. (NYSE:PNC) was 10.86%, and its shares gained 61.82% of their value over the last 52 weeks. On November 13, 2024, The PNC Financial Services Group, Inc. (NYSE:PNC) stock closed at $209.30 per share with a market capitalization of $83.047 billion.
Artisan Value Fund stated the following regarding The PNC Financial Services Group, Inc. (NYSE:PNC) in its Q3 2024 investor letter:
“Other top performers were The PNC Financial Services Group, Inc. (NYSE:PNC) and Kerry Group. PNC and other bank stocks rallied as cooling inflation data solidified expectations that the Federal Reserve would join other central banks in easing monetary policy. Interest rate cuts are seen boosting net interest margins by reducing bank borrowing costs while also fostering better loan growth. PNC’s management noted that the bank’s net interest income has moved past its trough, increasing for the first time in six quarters. PNC, a stock we purchased in Q1 2023 when bank stocks were broadly out of favor given industry-wide headwinds related to higher rates, has been one of our top contributors to returns over the past year. It is well managed and has a solid balance sheet, and as one of the largest banks in the US, we believe it has the necessary scale to continually reinvest in the required technology and risk management systems needed to compete and attract deposits.”
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The PNC Financial Services Group, Inc. (NYSE:PNC) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 51 hedge fund portfolios held The PNC Financial Services Group, Inc. (NYSE:PNC) at the end of the second quarter which was 52 in the previous quarter. In the third quarter, The PNC Financial Services Group, Inc. (NYSE:PNC) reported $1.5 billion in net income worth $3.49, diluted earnings per share. While we acknowledge the potential of The PNC Financial Services Group, Inc. (NYSE:PNC) 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 The PNC Financial Services Group, Inc. (NYSE:PNC) and shared the list of dividend growth companies. 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.