Bretton Capital Management, an investment management company, released “Bretton Fund” fourth quarter 2024 investor letter. A copy of the letter can be downloaded here. The market is experiencing a period of high returns, with two consecutive years of around 25% returns and 15 years of mid-teens returns, prompting investors to be cautious. The average stock market return is around 9-10% per year, historically, based on corporate earnings growth and dividends and buybacks. The 20 companies the fund owns are well-positioned and expected to perform well. Against this backdrop, in the fourth quarter, the fund returned -0.98% compared to 2.41% return for the S&P 500. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.
In its fourth quarter 2024 investor letter, Bretton Fund emphasized stocks such as TJX Companies, Inc. (NYSE:TJX). The TJX Companies, Inc. (NYSE:TJX) is an off-price apparel and home fashion retailer. The one-month return of The TJX Companies, Inc. (NYSE:TJX) was 2.04%, and its shares gained 26.83% of their value over the last 52 weeks. On February 14, 2025, The TJX Companies, Inc. (NYSE:TJX) stock closed at $124.34 per share with a market capitalization of $138.373 billion.
Bretton Fund stated the following regarding The TJX Companies, Inc. (NYSE:TJX) in its Q4 2024 investor letter:
“Pre-pandemic, The TJX Companies, Inc. (NYSE:TJX) and Ross were usually in lockstep operationally and performance-wise. The main difference is TJX is much larger and has more divisions: TJ Maxx has higher-end goods; Marshalls has lower price points and is very similar to Ross; HomeGoods and Homesense offer furniture and household goods. But as inflation spiked up, TJX was better able to push through price increases, helped in part due to its relatively higher-income shoppers being less sensitive to inflation. TJX’s earnings growth and share price have outperformed Ross the past few years, but we expect that to converge in the near term. TJX’s and Ross’s earnings increased an estimated 9% and 11%, respectively, and their stocks returned 31% and 10%.”
A busy retail store floor with customers trying on apparel and browsing the products.
The TJX Companies, Inc. (NYSE:TJX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 63 hedge fund portfolios held The TJX Companies, Inc. (NYSE:TJX) at the end of the third quarter which was 56 in the previous quarter. While we acknowledge the potential of The TJX Companies, Inc. (NYSE:TJX) 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 The TJX Companies, Inc. (NYSE:TJX) and shared the list of restaurants and retail stocks discussed by Jim Cramer. In addition, please check out our hedge fund investor letters Q4 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.