Bronte Capital, an investment management company, released its “Amalthea Fund” third-quarter 2024 investor letter. A copy of the letter can be downloaded here. The fund was down 3.72% for the quarter vs. +2.54% for the MSCI ACWI (in $A). It was down 5.59% in September vs. -0.35% for the index. The market rose in the third quarter, reaching new peaks, with a minor dip in late August and early September. In addition, you can check the top 5 holdings of the fund to know its best picks in 2024.
Amalthea Fund highlighted stocks like American Express Company (NYSE:AXP) in the Q3 2024 investor letter. American Express Company (NYSE:AXP) operates as integrated payments company. The one-month return of American Express Company (NYSE:AXP) was 5.28%, and its shares gained 74.34% of their value over the last 52 weeks. On November 19, 2024, American Express Company (NYSE:AXP) stock closed at $285.55 per share with a market capitalization of $201.154 billion.
Amalthea Fund stated the following regarding American Express Company (NYSE:AXP) in its Q3 2024 investor letter:
“US Credit cards have become a concentrated business. The leading players in order are Chase, a part of JPMorgan, American Express, Citi, Capital One, Bank of America and Discover. A combination of Capital One and Discover will become the number two player.
Most credit cards transact on the Visa/Mastercard networks. As noted in the main letter Visa is an enormously powerful company. There are however two independently owned networks. One is owned by American Express and the other by Discover.
American Express have competed with Visa by charging more than Visa. The idea was that by charging more than Visa you could offer more services (such as very good service if your card is lost overseas) or more airline points or both to customers. The cost for these were carried by the merchants who accepted the card. This made merchants reluctant to accept the card – with the reluctance offset by high value customers American Express brings…” (Click here to read the full text)
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, and its earnings per share were $3.49.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 the list of stocks Jim Cramer is talking about. 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.