The London Company, an investment management company, released “The London Company Large Cap Strategy” third quarter 2024 investor letter. A copy of the letter can be downloaded here. U.S. equities increased during the third quarter, with most major indices recording mid-single-digit gains. The broader market, represented by the Russell 3000 Index, rose by 6.2%. Notably, there was a shift from large-cap growth stocks to small-cap and value styles. The portfolio increased 8.2% (8.1% net) during the quarter compared to a 6.1% increase for the Russell 1000 Index. Both stock selection and sector exposure were tailwinds to the relative performance of the strategy. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.
The London Company Large Cap Strategy highlighted stocks like Cisco Systems, Inc. (NASDAQ:CSCO) in the third quarter 2024 investor letter. Cisco Systems, Inc. (NASDAQ:CSCO) manufactures and supplies Internet Protocol-based networking and other products related to the communications and information technology industry. The one-month return of Cisco Systems, Inc. (NASDAQ:CSCO) was 4.85%, and its shares gained 5.96% of their value over the last 52 weeks. On November 5, 2024, Cisco Systems, Inc. (NASDAQ:CSCO) stock closed at $56.16 per share with a market capitalization of $223.855 billion.
The London Company Large Cap Strategy stated the following regarding Cisco Systems, Inc. (NASDAQ:CSCO) in its Q3 2024 investor letter:
“Exited: Cisco Systems, Inc. (NASDAQ:CSCO) – Sale reflects slowing growth prospects and risk of value-destroying M&A. Valuation of the shares is attractive, and CSCO offers a 3.3% dividend yield at the current price, which makes it a more attractive holding for our Income Equity portfolio.”
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Cisco Systems, Inc. (NASDAQ:CSCO) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 61 hedge fund portfolios held Cisco Systems, Inc. (NASDAQ:CSCO) at the end of the second quarter which was 58 in the previous quarter. While we acknowledge the potential of Cisco Systems, Inc. (NASDAQ:CSCO) 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 Cisco Systems, Inc. (NASDAQ:CSCO) and shared AI news investors should not miss. 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.