Hotchkis & Wiley Funds, an investment management company, released its “Hotchkis & Wiley Large Cap Value Fund” third quarter 2024 investor letter. A copy of the same can be downloaded here. The S&P 500 Index was up +22.1% since the start of the year and returned +5.9% in the third quarter. The latest update on the Consumer Price Index provided additional proof that the rate of inflation is declining sustainably. In the quarter, large value beat large growth (+9.4% vs. +3.2%), although growth has a significant advantage so far this year (+24.6% vs. +16.7%). In the third quarter of 2024, the Hotchkis & Wiley Large Cap Fundamental Value portfolio underperformed the Russell 1000 Value index (gross and net of management fees). In addition, please check the fund’s top five holdings to know its best picks in 2024.
Hotchkis & Wiley Large Cap Value Fund highlighted stocks like General Motors Company (NYSE:GM) in the third quarter 2024 investor letter. General Motors Company (NYSE:GM) is a global automobile manufacturer. The one-month return of General Motors Company (NYSE:GM) was -2.81%, and its shares gained 49.50% of their value over the last 52 weeks. On December 24, 2024, General Motors Company (NYSE:GM) stock closed at $53.51 per share with a market capitalization of $59.005 billion.
Hotchkis & Wiley Large Cap Value Fund stated the following regarding General Motors Company (NYSE:GM) in its Q3 2024 investor letter:
“General Motors Company (NYSE:GM) is one of the world’s largest manufacturers of passenger vehicles. GM reported a strong Q2; however, management provided a cautious outlook for the second half of 2024. Comments from GM mirrored those of other OEMs and auto suppliers, leading investors to believe the automotive cycle has peaked. We believe this is an overreaction, and we continue to view GM as an attractive investment. We like GM for many reasons. First, we believe GM has leading market positions in its main business segments. Second, the valuation is extremely attractive. Finally, it is a strong free cash flow generator, and the management team is committed to repurchasing their undervalued shares.”
A factory worker using an ultra-sensitive pixel-based sensor while working on an automobile.
General Motors Company (NYSE:GM) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 64 hedge fund portfolios held General Motors Company (NYSE:GM) at the end of the third quarter which was 72 in the previous quarter. Third quarter revenue of General Motors Company (NYSE:GM) was up 10% to $49 billion. While we acknowledge the potential of General Motors Company (NYSE:GM) 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 General Motors Company (NYSE:GM) and shared the list of best self-driving technology stocks to buy according to hedge funds. 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.