Madison Investments, an investment advisor, released its “Madison Investors Fund” second-quarter 2024 investor letter. A copy of the letter can be downloaded here. In the second quarter, the fund (Class Y) fell by 1.03% compared to a 4.28% return for the S&P 500 index. YTD the fund returned 8.50% compared to a 15.29% return for the index. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Madison Investors Fund highlighted stocks like Dollar Tree, Inc. (NASDAQ:DLTR) in the second quarter 2024 investor letter. Dollar Tree, Inc. (NASDAQ:DLTR) operates retail discount stores, that runs Dollar Tree and Family Dollar segments. The one-month return of Dollar Tree, Inc. (NASDAQ:DLTR) was -0.85%, and its shares lost 29.78% of their value over the last 52 weeks. On July 18, 2024, Dollar Tree, Inc. (NASDAQ:DLTR) stock closed at $106.67 per share with a market capitalization of $22.928 billion.
Madison Investors Fund stated the following regarding Dollar Tree, Inc. (NASDAQ:DLTR) in its Q2 2024 investor letter:
“Dollar Tree, Inc. (NASDAQ:DLTR) underperformed following a plethora of concerns: weakness surrounding the low-end consumer, pricing actions by peers, and disappointing sales at the core Dollar Tree banner. In addition, the significant news that management has placed the struggling Family Dollar banner under strategic review was received skeptically by investors. Despite these concerns, we are encouraged by the long-term prospects of the multi-price initiatives at the Dollar Tree banner and are entirely supportive of management’s effort to enhance value by evaluating alternatives for Family Dollar. We also see a comfortable margin of safety in the shares at the current price.”
A shopper browsing through a discount retailers merchandise aisle filled with a wide variety of items.
Dollar Tree, Inc. (NASDAQ:DLTR) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 39 hedge fund portfolios held Dollar Tree, Inc. (NASDAQ:DLTR) at the end of the first quarter which was 39 in the previous quarter. In the first quarter Dollar Tree, Inc.’s (NASDAQ:DLTR) net sales grew 4.2% to $7.6 billion (see the details here). While we acknowledge the potential of Dollar Tree, Inc. (NASDAQ:DLTR) 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 Dollar Tree, Inc. (NASDAQ:DLTR) and shared the list of stocks democrats and corporate insiders are buying. Madison Investors Fund’s Q1 2024 investor letter discussed Dollar Tree, Inc.’s (NASDAQ:DLTR) underperformance during the quarter. 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.
