The London Company, an investment management company, released “The London Company Mid Cap Strategy” third quarter 2024 investor letter. A copy of the letter can be downloaded here. U.S. equities experienced an upward trend in the third quarter, with most major indices recording mid-single-digit gains. Notable market changes characterized this period. Despite these challenges, the stock market concluded the quarter on a positive note. The portfolio returned 7.9% (7.8% net) during the quarter compared to a 9.2% increase for the Russell Midcap Index. Both stock selection and sector exposure were modest headwinds to relative performance. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.
The London Company Mid Cap Strategy highlighted stocks like Allison Transmission Holdings, Inc. (NYSE:ALSN), in the third quarter 2024 investor letter. Allison Transmission Holdings, Inc. (NYSE:ALSN) designs, builds, and sells fully automatic transmissions for medium- and heavy-duty commercial vehicles, U.S. defense vehicles, and electrified propulsion systems globally. The one-month return of Allison Transmission Holdings, Inc. (NYSE:ALSN) was 18.09%, and its shares gained 125.07% of their value over the last 52 weeks. On November 6, 2024, Allison Transmission Holdings, Inc. (NYSE:ALSN) stock closed at $117.26 per share with a market capitalization of $10.157 billion.
The London Company Mid Cap Strategy stated the following regarding Allison Transmission Holdings, Inc. (NYSE:ALSN) in its Q3 2024 investor letter:
“Allison Transmission Holdings, Inc. (NYSE:ALSN) – ALSN reported strong results in recent quarters, reflecting solid top-line growth, pricing power, and margin expansion. Segments generally performed well aside from North American off- market, which has significant energy exposure. We are also starting to see ALSN’s defense end-market strategy paying off as the world readies for growing geopolitical tensions. We continue to like the company’s wide moat and solid management team.”
A carpenter installing an aluminum die cast component in the engine of a commercial vehicle.
Allison Transmission Holdings, Inc. (NYSE:ALSN) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 30 hedge fund portfolios held Allison Transmission Holdings, Inc. (NYSE:ALSN) at the end of the second quarter which was 31 in the previous quarter. Allison Transmission Holdings, Inc.’s (NYSE:ALSN) year-over-year net sales in the third quarter increased 12% to a record of $824 million. While we acknowledge the potential of Allison Transmission Holdings, Inc. (NYSE:ALSN) 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.
n 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.