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 Allison Transmission Holdings, Inc. (NYSE:ALSN), in the third quarter 2024 investor letter. Allison Transmission Holdings, Inc. (NYSE:ALSN) designs, builds, and sells fully automatic transmissions for medium- and heavy-duty commercial vehicles, U.S. defense vehicles, and electrified propulsion systems globally. The one-month return of Allison Transmission Holdings, Inc. (NYSE:ALSN) was -3.93%, and its shares gained 103.54% of their value over the last 52 weeks. On December 9, 2024, Allison Transmission Holdings, Inc. (NYSE:ALSN) stock closed at $113.80 per share with a market capitalization of $9.858 billion.
Fidelity Dividend Growth Fund stated the following regarding Allison Transmission Holdings, Inc. (NYSE:ALSN) in its Q3 2024 investor letter:
“A sizable non-benchmark stake in Allison Transmission Holdings, Inc. (NYSE:ALSN) (+27%) further bolstered performance. We were attracted to this company due to our optimism around demand for medium-duty truck transmissions, the stock’s cheap valuation and our expectation that the transition away from internal combustion engines will take place more slowly than the market expects. Lately, the market has begun to agree with this assessment.”
A carpenter installing an aluminum die cast component in the engine of a commercial vehicle.
Allison Transmission Holdings, Inc. (NYSE:ALSN) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 31 hedge fund portfolios held Allison Transmission Holdings, Inc. (NYSE:ALSN) at the end of the third quarter which was 30 in the previous quarter. Allison Transmission Holdings, Inc.’s (NYSE:ALSN) year-over-year net sales in the third quarter increased 12% to a record of $824 million. While we acknowledge the potential of Allison Transmission Holdings, Inc. (NYSE:ALSN) 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 Allison Transmission Holdings, Inc. (NYSE:ALSN) and shared The London Company Mid Cap Strategy’s views on the company. 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.