The London Company, an investment management company, released “The London Company Large Cap Strategy” second quarter 2024 investor letter. A copy of the letter can be downloaded here. The US stocks’ performance was mixed in the second quarter measured by the Russell 3000 Index’s 3.2% return. The fund declined 1.9% (2.0% net) during the quarter compared to a 3.6% return for the Russell 1000 Index. For more information on the fund’s top picks in 2024, please check its top five holdings.
The London Company Large Cap Strategy highlighted stocks like Norfolk Southern Corporation (NYSE:NSC), in the second quarter 2024 investor letter. Norfolk Southern Corporation (NYSE:NSC) engages in the rail transportation of raw materials, intermediate products, and finished goods in the United States. One-month return of Norfolk Southern Corporation (NYSE:NSC) was 12.76%, and its shares gained 8.36% of their value over the last 52 weeks. On August 2, 2024, Norfolk Southern Corporation (NYSE:NSC) stock closed at $243.41 per share with a market capitalization of $55.034 billion.
The London Company Large Cap Strategy stated the following regarding Norfolk Southern Corporation (NYSE:NSC) in its Q2 2024 investor letter:
“Norfolk Southern Corporation (NYSE:NSC) – NSC pre-announced weaker results in early April. Revenue declined in its latest quarter driven by lower fuel surcharges, an unfavorable product mix, and lower intermodal ancillary fees. Costs continued to rise. Activist involvement may lead to lower costs in the future. Added to the position following recent weakness in the shares. We believe the competitive advantages are intact and valuation is attractive.”
A bird’s eye view of a long freight train rumbling along the tracks.
Norfolk Southern Corporation (NYSE:NSC) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 54 hedge fund portfolios held Norfolk Southern Corporation (NYSE:NSC) at the end of the first quarter which was 50 in the previous quarter. The second quarter revenue of Norfolk Southern Corporation (NYSE:NSC) was just above $3 billion, down 2% year-over-year. While we acknowledge the potential of Norfolk Southern Corporation (NYSE:NSC) 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 Norfolk Southern Corporation (NYSE:NSC) and shared Aristotle Atlantic Core Equity Strategy’s views on the company. 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.
