ClearBridge Investments, an investment management company, released its “ClearBridge Large Cap Value Strategy” second quarter 2024 investor letter. A copy of the letter can be downloaded here. US equities continued the journey as the growing number of “winners” concentrated in the market due to the excitement surrounding new weight loss medications and artificial intelligence, while the overall market was being affected by weakening economic indicators. The Russell 1000 Value Index underperformed its growth counterpart in the quarter, returning -2.17% to the Russell 1000 Growth Index’s 8.34% return. The strategy lagged behind its Russell 1000 Value Index benchmark during the quarter and had negative contributions from nine of the 11 sectors it was invested, on an absolute basis. Overall stock selection detracted from the performance, relatively. In addition, please check the fund’s top five holdings to know its best picks in 2024.
ClearBridge Large Cap Value Strategy highlighted stocks like United Parcel Service, Inc. (NYSE:UPS), in the second quarter 2024 investor letter. United Parcel Service, Inc. (NYSE:UPS) is a package delivery company, with a market capitalization of $116.655 billion. The one-month return of United Parcel Service, Inc. (NYSE:UPS) was -0.97%, and its shares lost 24.81% of their value over the last 52 weeks. On July 5, 2024, United Parcel Service, Inc. (NYSE:UPS) stock closed at $136.35 per share.
ClearBridge Large Cap Value Strategy stated the following regarding United Parcel Service, Inc. (NYSE:UPS) in its Q2 2024 investor letter:
“Our industrials holdings weighed on relative performance as we are more exposed to transports such as “less than truckload” provider XPO and parcel delivery company United Parcel Service, Inc. (NYSE:UPS), which are struggling with weak volumes during the post-COVID freight recession. With industry volumes down to pre-COVID levels and strong pricing power in the LTL space in particular, we believe that the next upcycle will prove to be very strong for earnings. As a result, we added to XPO in the quarter while reducing our position in UPS on concerns that industry capacity remains excessive. Meanwhile, we have less exposure to electrical equipment stocks, which have been rewarded by views that they will benefit from the buildout of AI data centers.”
A warehouse filled with boxes of parcels, symbolizing the companies reliable logistics services.
United Parcel Service, Inc. (NYSE:UPS) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 43 hedge fund portfolios held United Parcel Service, Inc. (NYSE:UPS) at the end of the first quarter which was 46 in the previous quarter. In the first quarter, United Parcel Service, Inc. (NYSE:UPS) reported consolidated revenue of $21.7 billion, a 5.3% decrease compared to first quarter of 2023. While we acknowledge the potential of United Parcel Service, Inc. (NYSE:UPS) 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.
We discussed United Parcel Service, Inc. (NYSE:UPS) in another article and shared the list of largest publicly traded industrial companies in the US. United Parcel Service, Inc. (NYSE:UPS) negatively contributed to the performance of Artisan Value Fund in Q1 2024. 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.
