Fidelity Investments, an investment management company, recently released its “Fidelity Growth Strategies Fund” third quarter 2024 investor letter. A copy of the letter can be downloaded here. Fidelity Growth Strategies Fund is a diversified domestic equity strategy with a focus on mid-cap growth. the fund’s Retail Class shares gained 6.28% in the third quarter, modestly underperforming the 6.54% return of the benchmark Russell Midcap® Growth Index. Throughout the three months, the U.S. Federal Reserve’s long-awaited shift to lowering interest rates, the promise of artificial intelligence, and robust corporate profits boosted U.S. mid-cap growth stocks. Value equities drove the surge, while those with mid- and small-caps outperformed those with large-caps. In addition, you can check the fund’s top 5 holdings to know its best picks in 2024.
Fidelity Growth Strategies Fund highlighted stocks like Palantir Technologies Inc. (NASDAQ:PLTR), in the third quarter 2024 investor letter. Palantir Technologies Inc. (NASDAQ:PLTR) offers software platforms for the intelligence community. The one-month return of Palantir Technologies Inc. (NASDAQ:PLTR) was 23.09%, and its shares gained 304.45% of their value over the last 52 weeks. On December 5, 2024, Palantir Technologies Inc. (NASDAQ:PLTR) stock closed at $71.87 per share with a market capitalization of $163.721 billion.
Fidelity Growth Strategies Fund stated the following regarding Palantir Technologies Inc. (NASDAQ:PLTR) in its Q3 2024 investor letter:
“Untimely ownership of Palantir Technologies Inc. (NASDAQ:PLTR) (+47%) also hurt the fund’s relative result. This software and services firm, which operates in both government and commercial segments, saw strong growth during the quarter, largely driven by its “AIP” – or Artificial Intelligence Platform – offering. In early August, the company reported Q2 financial results that mostly met somewhat lofty expectations. We established a sizable holding in Palantir Technologies during the quarter, and at quarter end it was the second-largest position and a slight overweight.”
A software engineer manipulating a vast network of code on virtual monitors.
Palantir Technologies Inc. (NASDAQ:PLTR) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 43 hedge fund portfolios held Palantir Technologies Inc. (NASDAQ:PLTR) at the end of the third quarter which was 44 in the previous quarter. While we acknowledge the potential of Palantir Technologies Inc. (NASDAQ:PLTR) 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 Palantir Technologies Inc. (NASDAQ:PLTR) and shared AI news that broke the internet. 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.