Lindsell Train Ltd, an investment management company, released its third quarter 2024 investor letter. A copy of the letter can be downloaded here. The objective of the fund is to achieve both capital and income growth, aiming for a total return that exceeds the MSCI North America Index (GBP). This will be accomplished by investing a minimum of 80% of its assets directly in the stocks of North American companies. The fund returned 2.9% in the September quarter compared to 0.0% for the benchmark. In addition, you can check the top 5 holdings of the fund to know its best picks in 2024.
Lindsell Train highlighted stocks like T. Rowe Price Group, Inc. (NASDAQ:TROW) in the third quarter 2024 investor letter. T. Rowe Price Group, Inc. (NASDAQ:TROW) is an investment management company that offers services to individuals, institutional investors, retirement plans, financial intermediaries, and institutions. The one-month return of T. Rowe Price Group, Inc. (NASDAQ:TROW) was -8.06%, and its shares gained 6.40% of their value over the last 52 weeks. On December 31, 2024, T. Rowe Price Group, Inc. (NASDAQ:TROW) stock closed at $113.09 per share with a market capitalization of $25.124 billion.
Lindsell Train stated the following regarding T. Rowe Price Group, Inc. (NASDAQ:TROW) in its Q3 2024 investor letter:
“T. Rowe Price Group, Inc. (NASDAQ:TROW) is the only asset manager held in your Fund. The headwinds to this industry, notably the long-term shift to passive and resultant fee pressures, are well known, leading to mouthwatering valuations for what can be extremely profitable companies. In our view T. Rowe stands out with trillion-dollar scale, exceptional margins, and a long track-record of headwind-defying growth, affording it a place in our portfolio since inception. Its shares, however, have not been stellar performers over this four-year+ period, returning just c.30% in USD vs. the MSCI North America’s c.120%. In this month’s update we outline our reasons for continued optimism.
Founded back in 1937 by renowned growth investor Thomas Rowe Price Jr. (a pioneer of basing fees on assets), the eponymous T. Rowe Price is now one of the biggest active managers in the US with $1.6tn under management. This gives it the rare attributes of heritage, a resonant brand, and vast scale. With costs generally fixed (excepting c.30% of variable compensation) asset management thrives on operating leverage, with T. Rowe no exception, leveraging its scale to deliver at least 30% operating margins every year for three decades. Returns to equity bound between 20-and 30%, and with over $2bn of net cash on the balance sheet, almost all earnings are returned to shareholders via buybacks and a generous 4.5% dividend yield…” (Click here to read the full text)
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T. Rowe Price Group, Inc. (NASDAQ:TROW) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 26 hedge fund portfolios held T. Rowe Price Group, Inc. (NASDAQ:TROW) at the end of the third quarter which was 28 in the previous quarter. While we acknowledge the potential of T. Rowe Price Group, Inc. (NASDAQ:TROW) 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 T. Rowe Price Group, Inc. (NASDAQ:TROW) and shared the list of best dividend growth stocks to buy and hold in 2025. 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.