Madison Investments, an investment management firm, released its “Madison Investments U.S. Equity Strategy ” Q4 2023 investor Letter. A copy of the same can be downloaded here. In 2023, the US stock market experienced a positive year. The S&P 500 Index ended 2023 up 26.3%, having recovered all of its 2022 decline and a little bit more. The year’s most notable feature was the glaring concentration of returns in the Magnificent Seven. With an average annual return of 111.7%, these seven megacap technology firms accounted for considerably over half of the S&P 500’s entire gain. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Madison Investments U.S. Equity Strategy featured stocks such as The TJX Companies, Inc. (NYSE:TJX) in the fourth quarter 2023 investor letter. Headquartered in Framingham, Massachusetts, The TJX Companies, Inc. (NYSE:TJX) is an off-price apparel and home fashion retailer. On February 16, 2024, The TJX Companies, Inc. (NYSE:TJX) stock closed at $98.04 per share. One-month return of The TJX Companies, Inc. (NYSE:TJX) was 3.06%, and its shares gained 22.81% of their value over the last 52 weeks. The TJX Companies, Inc. (NYSE:TJX) has a market capitalization of $111.734 billion.
Madison Investments U.S. Equity Strategy stated the following regarding The TJX Companies, Inc. (NYSE:TJX) in its fourth quarter 2023 investor letter:
“Whether it’s performance by market capitalization, sectors, or any other factor, stock markets are intrinsically cyclical. Some cycles are long-term, taking decades to unfold, and some are short-term, lasting months, weeks, or even days. Many are medium in length, lasting two, three, or several years. Most cycles occur because a trend often creates the seeds of its own reversal. We at Madison Investments are certain that market cycles will occur, but it doesn’t mean we can predict their timing or magnitude. We don’t think we can. This is perhaps a major difference between us and many other investors. Most investors believe it’s their job to time market cycles despite overwhelming evidence that it’s nearly impossible to do so with enough accuracy to make such an effort profitable over long periods. We avoid making calls about market cycles and spend zero minutes thinking about them, not because we don’t think they can be important, but because we think they’re inherently unpredictable in duration.
This mentality of our team is generally true for other kinds of cycles, such as macroeconomic, industry, or company-specific, but is a bit more nuanced for those. We make no explicit prediction about cycles on which we base a buy or sell decision. Still, we are acutely aware of the various cyclical forces at work, and depending on whether we think we have the ability to assess the length or intensity of such, we may incorporate them to various degrees.
Let’s use a few examples to illustrate our point. We’ve been invested in off-price retailer The TJX Companies, Inc. (NYSE:TJX) for just under ten years, having invested in 2014 in our Large Cap strategy. TJX is one of the most recession-resistant companies we own due to its perennial value proposition to customers; customers always like to save money, especially when economic times get tough. As a result, the company has had an exceedingly steady revenue and earning profile over the past several decades…” (Click here to read the full text)
A busy store filled with customers shopping for the latest menswear apparel products.
The TJX Companies, Inc. (NYSE:TJX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. At the end of the fourth quarter, The TJX Companies, Inc. (NYSE:TJX) was held by 62 hedge fund portfolios, down from 71 in the previous quarter, according to our database.
We discussed The TJX Companies, Inc. (NYSE:TJX) in another article and shared the list of best discount retailer stocks to buy. In addition, please check out our hedge fund investor letters Q4 2023 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.
