Baird Equity Asset Management, an investment management company, released its “Baird Mid Cap Growth Equity Strategy” second quarter 2024 investor letter. A copy of the letter can be downloaded here. The strategy returned -8.9%, net of fees, in the second quarter, compared to the Russell Midcap Growth’s -3.2% decline. It was a challenging quarter due to portfolio positioning and ongoing benchmark factor headwinds, which negatively impacted the relative performance of the strategy in the quarter. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Baird Mid Cap Growth Equity Strategy highlighted stocks like Dollar Tree, Inc. (NASDAQ:DLTR) in the second quarter 2024 investor letter. Dollar Tree, Inc. (NASDAQ:DLTR) operates retail discount stores, that runs Dollar Tree and Family Dollar segments. The one-month return of Dollar Tree, Inc. (NASDAQ:DLTR) was -13.92%, and its shares lost 31.68% of their value over the last 52 weeks. On September 25, 2024, Dollar Tree, Inc. (NASDAQ:DLTR) stock closed at $70.55 per share with a market capitalization of $15.714 billion.
Baird Mid Cap Growth Equity Strategy stated the following regarding Dollar Tree, Inc. (NASDAQ:DLTR) in its Q2 2024 investor letter:
“Consumer discretionary performance was the quarter’s largest detractor. Thematically, our holdings in retail and in particular value retail hurt due to greater-than-anticipated operating challenges amid the persistent inflationary environment. In addition, our expectation that value-based retailers would benefit from consumers trading down, spurring revenue and new customer growth, has not yet materialized in a meaningful way. Of note, Dollar Tree, Inc. (NASDAQ:DLTR) and Five Below delivered disappointing performance.”
A shopper browsing through a discount retailers merchandise aisle filled with a wide variety of items.
Dollar Tree, Inc. (NASDAQ:DLTR) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 38 hedge fund portfolios held Dollar Tree, Inc. (NASDAQ:DLTR) at the end of the second quarter which was 39 in the previous quarter. In the second quarter, Dollar Tree, Inc.’s (NASDAQ:DLTR) net sales increased 0.7% year-over-year to $7.4 billion. While we acknowledge the potential of Dollar Tree, Inc. (NASDAQ:DLTR) 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 Dollar Tree, Inc. (NASDAQ:DLTR) and shared the list of cheap retail stocks to buy according to analysts. In addition, please check out our hedge fund investor letters Q2 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.