Investment management company Curreen Capital released its third quarter 2024 Investor letter. A copy of the letter can be downloaded here. Although the overall market has seen an increase, many of the “ugly duckling” stocks the firm is concentrating on have become cheaper. This creates excellent opportunities to buy quality businesses while they are temporarily out of favor in the stock market. In the third quarter, the fund was up 0.9% compared to 5.89% for the S&P 500 Index. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.
Curreen Capital highlighted stocks like Advance Auto Parts, Inc. (NYSE:AAP) in the third quarter 2024 investor letter. Based in Raleigh, North Carolina, Advance Auto Parts, Inc. (NYSE:AAP) is an automotive replacement parts and accessories provider. The one-month return of Advance Auto Parts, Inc. (NYSE:AAP) was 4.22%, and its shares lost 30.57% of their value over the last 52 weeks. On November 7, 2024, Advance Auto Parts, Inc. (NYSE:AAP) stock closed at $38.98 per share with a market capitalization of $2.326 billion.
Curreen Capital stated the following regarding Advance Auto Parts, Inc. (NYSE:AAP) in its Q3 2024 investor letter:
“We sold our shares in Advantage Solutions, added to Advance Auto Parts and Enhabit. During the third quarter we added to two turnarounds: Advance Auto Parts and Enhabit, putting 1.5% of the fund into each of them. Our strategy is to add to such businesses at predetermined discounts to my estimate of their downside valuation. I am often surprised by how far down the market will push unpopular stocks. We respond to this dynamic by starting small and buying more as the stock price drops. We added to Advance Auto Parts at $45.49 per share, and to Enhabit at $7.83 per share.”
A manufacturing facility floor filled with an array of automotive parts and accessories.
Advance Auto Parts, Inc. (NYSE:AAP) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 39 hedge fund portfolios held Advance Auto Parts, Inc. (NYSE:AAP) at the end of the second quarter which was 39 in the previous quarter. Advance Auto Parts, Inc.’s (NYSE:AAP) pro-business segment led to a positive 0.4% growth in comparable sales for the second quarter. While we acknowledge the potential of Advance Auto Parts, Inc. (NYSE:AAP) 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 Advance Auto Parts, Inc. (NYSE:AAP) and shared the list of the best 52-week low stocks that pay dividends. 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.