Madison Investments, an investment advisor, released its “Madison Investors Fund” third-quarter 2024 investor letter. A copy of the letter can be downloaded here. In the third quarter, the fund (Class Y) appreciated 7.80% compared to a 5.89% return for the S&P 500 index. In the YTD, nine months period, the fund returned 16.96% compared to a 22.08% return for the index. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Madison Investors Fund highlighted stocks like Alphabet Inc. (NASDAQ:GOOG) in its Q3 2024 investor letter. Alphabet Inc. (NASDAQ:GOOG), the parent company of Google, offers various platforms and services operating through Google Services, Google Cloud, and Other Bets segments. The one-month return of Alphabet Inc. (NASDAQ:GOOG) was 1.21%, and its shares gained 19.69% of their value over the last 52 weeks. On October 18, 2024, Alphabet Inc. (NASDAQ:GOOG) stock closed at $165.05 per share with a market capitalization of $2.021 trillion.
Madison Investors Fund stated the following regarding Alphabet Inc. (NASDAQ:GOOG) in its Q3 2024 investor letter:
“The bottom five individual detractors were Dollar Tree, Alphabet Inc. (NASDAQ:GOOG), PACCAR, Charles Schwab, and Copart. Over the last few years, investors have oscillated between valuing Alphabet as an “AI Winner” and “AI Loser”. This quarter it was something different, a court ruling in the antitrust suit brought by the Department of Justice, that scared investors. While we believe Alphabet can absorb a wide range of regulatory outcomes, we will remain vigilant in our assessment of the company. Despite all the headlines around the legal case and competitive inroads from AI chatbots, the businesses’ underlying performance continues to be strong across Search, YouTube, and Cloud.”
A user’s hands typing a search query into a Google Search box, emphasizing the company’s search capabilities.
Alphabet Inc. (NASDAQ:GOOG) is in 7th position on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 165 hedge fund portfolios held Alphabet Inc. (NASDAQ:GOOG) at the end of the second quarter which was 165 in the previous quarter. While we acknowledge the potential of Alphabet Inc. (NASDAQ:GOOG) 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 Alphabet Inc. (NASDAQ:GOOG) and shared most profitable stocks of the last years. Alphabet Inc. (NASDAQ:GOOG) was the top detractor of Oakmark Select Fund in the third quarter. 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.