Fidelity Investments, an investment management company, recently released its “Fidelity Dividend Growth Fund” third quarter 2024 investor letter. A copy of the letter can be downloaded here. Fidelity Dividend Growth Fund is a diversified domestic equity strategy with a focus on large-cap core. The portfolio invests in large and mid-cap firms with potential for sustainable dividend growth. The fund’s Retail Class shares gained 4.42% in the third quarter, underperforming the 5.89% advance of the benchmark S&P 500 index. The Federal Reserve’s long-awaited shift to lowering interest rates, the promise of artificial intelligence, and robust corporate profitability drove the US stocks higher in Q3. In addition, you can check the fund’s top 5 holdings to know its best picks in 2024.
Fidelity Dividend Growth Fund highlighted stocks like GE Vernova Inc. (NYSE:GEV) in the Q3 2024 investor letter. GE Vernova Inc. (NYSE:GEV) is an energy company that offers products and services that generate, transfer, orchestrate, convert, and store electricity. The one-month return of GE Vernova Inc. (NYSE:GEV) was 3.56%, and its shares gained 65.96% of their value over the last three months. On December 9, 2024, GE Vernova Inc. (NYSE:GEV) stock closed at $335.25 per share with a market capitalization of $92.413 billion.
Fidelity Dividend Growth Fund stated the following regarding GE Vernova Inc. (NYSE:GEV) in its Q3 2024 investor letter:
“Among individual holdings, the top relative contributor was an overweight stake in GE Vernova Inc. (NYSE:GEV). The company’s shares gained about 49% the past three months, as the power-generation business that split from General Electric on April 2 continued to fare well as a stand-alone entity. On July 24, the company reported quarterly earnings that were better than expected, boosted by its natural gas power-turbine business, and released an optimistic financial forecast for the rest of 2024.”
A closeup of a technician controlling a power generation facility.
GE Vernova Inc. (NYSE:GEV) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 89 hedge fund portfolios held GE Vernova Inc. (NYSE:GEV) at the end of the third quarter which was 92 in the previous quarter. While we acknowledge the potential of GE Vernova Inc. (NYSE:GEV) 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 GE Vernova Inc. (NYSE:GEV) and shared best wind power and solar stocks to invest in. In addition, please check out our hedge fund investor letters Q3 2024 page for more investor letters from hedge funds and other leading investors.
READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks.
Disclosure: None. This article is originally published at Insider Monkey.