Lithia Motors (LAD) Rose in Q4

Madison Investments, an investment advisor, released its “Madison Mid Cap Fund” fourth-quarter 2024 investor letter. A copy of the letter can be downloaded here. In the fourth quarter, the fund (Class Y) decreased 1.86% compared to the 0.62% increase for the Russell Midcap Index. The Fund returned 10.46% in the full year 2024 period, compared to 15.34% for the index. In addition, please check the fund’s top five holdings to know its best picks in 2024.

Madison Mid Cap Fund highlighted stocks like Lithia Motors, Inc. (NYSE:LAD) in the fourth quarter 2024 investor letter. Lithia Motors, Inc. (NYSE:LAD) is a global automotive retailer that operates in Vehicle Operations and Financing Operations segments. The one-month return of Lithia Motors, Inc. (NYSE:LAD) was 9.38%, and its shares gained 25.29% of their value over the last 52 weeks. On January 30, 2024, Lithia Motors, Inc. (NYSE:LAD) stock closed at $381.45 per share with a market capitalization of $10.161 billion.

Madison Mid Cap Fund stated the following regarding Lithia Motors, Inc. (NYSE:LAD) in its Q4 2024 investor letter:

“The top five contributors for the quarter were Liberty Formula One, Arista Networks, Copart, Brookfield Asset Management, and Lithia Motors, Inc. (NYSE:LAD). Lithia Motors reported quarterly results that suggested that at least some of the COVID-induced elevated levels of profitability may be more sustainable than previously thought.”

A customer in a store, examining a new vehicle on the showroom floor.

Lithia Motors, Inc. (NYSE:LAD) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 43 hedge fund portfolios held Lithia Motors, Inc. (NYSE:LAD) at the end of the third quarter which was 35 in the previous quarter. While we acknowledge the potential of Lithia Motors, Inc. (NYSE:LAD) 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 Lithia Motors, Inc. (NYSE:LAD) and shared long-term stock picks of billionaire Lee Cooperman. Madison Mid Cap Fund added Lithia Motors, Inc. (NYSE:LAD) to its portfolio during Q3 2024. 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.