Broyhill Asset Management, an investment advisor, released a third-quarter 2024, investor letter. A copy of the letter can be downloaded here. Broyhill Partners appreciated 6% net of all fees and expenses in the third quarter. The top contributors in the quarter were Philip Morris, Fiserv, Avantor, and Baxter. There was only one material detractor: Dollar General. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.
Broyhill Asset Management highlighted stocks like Dollar General Corporation (NYSE:DG) in the Q3 2024 investor letter. Dollar General Corporation (NYSE:DG) is a discount retailer, that provides various merchandise products. The one-month return of Dollar General Corporation (NYSE:DG) was 2.08%, and its shares lost 40.99% of their value over the last 52 weeks. On December 3, 2024, Dollar General Corporation (NYSE:DG) stock closed at $79.02 per share with a market capitalization of $17.378 billion.
Broyhill Asset Management stated the following regarding Dollar General Corporation (NYSE:DG) in its Q3 2024 investor letter:
“Shares of Dollar General Corporation (NYSE:DG) lost 36% in Q3. Dollar General has historically proven to be a safe haven for investors in uncertain times as consumers trade down and increase their spending with the retailer. While inflation has certainly put pressure on DG’s core customer in recent years, the retailer has seemingly lost market share to larger competitors. The most recent earnings report highlighted this dynamic, contrary to our expectation for a weaker economic environment to benefit the company.”
A busy shopping aisle filled with discounted items in a retail store.
Dollar General Corporation (NYSE:DG) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 45 hedge fund portfolios held Dollar General Corporation (NYSE:DG) at the end of the third quarter which was 42 in the previous quarter. While we acknowledge the potential of Dollar General Corporation (NYSE:DG) 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 General Corporation (NYSE:DG) and shared the list of oversold value stocks to buy. In Q3 2024, Dollar General Corporation (NYSE:DG) detracted from the performance of Artisan Value Fund after reporting weak results. 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.