The London Company, an investment management company, released “The London Company Large Cap Strategy” third quarter 2024 investor letter. A copy of the letter can be downloaded here. U.S. equities increased during the third quarter, with most major indices recording mid-single-digit gains. The broader market, represented by the Russell 3000 Index, rose by 6.2%. Notably, there was a shift from large-cap growth stocks to small-cap and value styles. The portfolio increased 8.2% (8.1% net) during the quarter compared to a 6.1% increase for the Russell 1000 Index. Both stock selection and sector exposure were tailwinds to the relative performance of the strategy. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.
The London Company Large Cap Strategy highlighted stocks like Fiserv, Inc. (NYSE:FI), in the third quarter 2024 investor letter. Fiserv, Inc. (NYSE:FI) is a payment and financial services technology services provider with a market capitalization of $115.502 billion. The one-month return of Fiserv, Inc. (NYSE:FI) was 8.14%, and its shares gained 69.00% of their value over the last 52 weeks. On November 5, 2024, Fiserv, Inc. (NYSE:FI) stock closed at $203.02 per share.
The London Company Large Cap Strategy stated the following regarding Fiserv, Inc. (NYSE:FI) in its Q3 2024 investor letter:
“Fiserv, Inc. (NYSE:FI) – Fl delivered another strong quarter with both Merchant and Financial Solutions segments outperforming, driven by solid execution of company initiatives. Their product offerings continue to resonate in the market, and management is effectively leveraging å flexible go-to-market strategy by cross-selling core platforms and point solutions to increase customer share across both segments. Free cash flow generation remains strong with management prioritizing organic reinvestment and capital returns. We are confident in Fl’s ability to generate sustainable earnings growth through its robust product portfolio and disciplined capital allocation.”
A businessperson checking their laptop, highlighting the company’s integration of technology across its banking and financial services.
Fiserv, Inc. (NYSE:FI) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 73 hedge fund portfolios held Fiserv, Inc. (NYSE:FI) at the end of the second quarter which was 69 in the previous quarter. In the third quarter, Fiserv announced impressive financial results, reporting adjusted earnings per share of $2.30, which marks a substantial increase of 17%, fueled by robust revenue growth and further improvements in operating margins across its various businesses. While we acknowledge the potential of Fiserv, Inc. (NYSE:FI) 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 Fiserv, Inc. (NYSE:FI) and shared the list of best information technology services stocks to invest. In addition, please check out our hedge fund investor letters Q3 2024 page for more investor letters from hedge funds and other leading investors.
READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks.
Disclosure: None. This article is originally published at Insider Monkey.