American Express (AXP) Returned +17.1% in Q3

GreensKeeper Asset Management, an investment management company, released its third quarter investor letter. A copy of the letter can be downloaded here. The Value Fund appreciated +4.7% (net) in the third quarter, +16.7% year to date and +24.4% over the past twelve months, however, the US dollar lowered returns by about -1.1% in Q3. The broader markets are clearly in positive territory for the year after a successful quarter. After the Federal Reserve decided to lower interest rates by 50 basis points in September, the major indices saw a surge, with the DJIA and S&P 500 closing the quarter at all-time highs. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.

GreensKeeper Asset Management highlighted stocks like American Express Company (NYSE:AXP) in the Q3 2024 investor letter. American Express Company (NYSE:AXP) operates as an integrated payments company. The one-month return of American Express Company (NYSE:AXP) was 2.35%, and its shares gained 80.35% of their value over the last 52 weeks. On December 3, 2024, American Express Company (NYSE:AXP) stock closed at $302.11 per share with a market capitalization of $212.926 billion.

GreensKeeper Asset Management stated the following regarding American Express Company (NYSE:AXP) in its Q3 2024 investor letter:

“American Express Company (NYSE:AXP) was our second-largest contributor this quarter, with a return of +17.1%. AXP continues to invest in its customers beyond traditional credit card rewards, recently enhancing its Global Dining Access to provide Platinum cardholders with exclusive reservations at premier restaurants worldwide. This focus on unique experiences has attracted a younger demographic, with millennials and Gen Z driving most of the customer acquisition and card spending growth in recent quarters. Exclusive events are more challenging to replicate than standard point reward systems, presenting a challenge for competing card issuers that lack AXP’s scale and concentrated base of affluent consumers. AXP has fine-tuned its offerings over decades to strengthen its network effect and shows no signs of slowing down.”

A close-up view of a payment terminal, capturing the sophistication of a payment network.

American Express Company (NYSE:AXP) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 62 hedge fund portfolios held American Express Company (NYSE:AXP) at the end of the third quarter which was 68 in the previous quarter. In the third quarter, American Express Company’s (NYSE:AXP) revenues were $16.6 billion, up 8% from the previous year. While we acknowledge the potential of American Express Company (NYSE:AXP) 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 American Express Company (NYSE:AXP) and shared Warren Buffett’s longest-held stocks. 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.