Madison Investments, an investment advisor, released its “Madison Investors Fund” second-quarter 2024 investor letter. A copy of the letter can be downloaded here. In the second quarter, the fund (Class Y) fell by 1.03% compared to a 4.28% return for the S&P 500 index. YTD the fund returned 8.50% compared to a 15.29% return for the index. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Madison Investors Fund highlighted stocks like PACCAR Inc (NASDAQ:PCAR) in the second quarter 2024 investor letter. PACCAR Inc (NASDAQ:PCAR) manufactures, and distributes light, medium, and heavy-duty commercial trucks. The one-month return of PACCAR Inc (NASDAQ:PCAR) was 2.56%, and its shares gained 23.81% of their value over the last 52 weeks. On July 18, 2024, PACCAR Inc (NASDAQ:PCAR) stock closed at $109.98 per share with a market capitalization of $57.645 billion.
Madison Investors Fund stated the following regarding PACCAR Inc (NASDAQ:PCAR) in its Q2 2024 investor letter:
“PACCAR Inc’s (NASDAQ:PCAR) shares traded off from all-time highs as investors have grown concerned about North American Class 8 truck sales. Despite weak freight rates and a slowing overall demand environment, truck sales have held up surprisingly well for the past year due to private shippers expanding their fleets. However, private fleets are unlikely to buoy the market indefinitely, and it seems likely that a weakening retail economy may further suppress overall demand for trucks. The current macro environment aside, PACCAR continues to execute well in growing its high margin, stable aftermarket parts division, and we believe that will provide some level of support through any cyclical downturn.”
A fleet of trucks travelling on a highway, emphasizing the transportation Services provided by the organization.
PACCAR Inc (NASDAQ:PCAR) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 40 hedge fund portfolios held PACCAR Inc (NASDAQ:PCAR) at the end of the first quarter which was 38 in the previous quarter. In the first quarter PACCAR Inc (NASDAQ:PCAR) reported revenues of $8.74 billion and net income of $1.2 billion. While we acknowledge the potential of PACCAR Inc (NASDAQ:PCAR) 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 PACCAR Inc (NASDAQ:PCAR) and shared the list of largest truck manufacturers in the world. In Q1 2024, PACCAR Inc (NASDAQ:PCAR) was a top performer of Madison Investors Fund. 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.
