Wedgewood Partners, an investment management company, released its fourth-quarter 2024 investor letter. A copy of the letter can be downloaded here. In the fourth quarter, Wedgewood Composite’s net return was 5.5% compared to the Standard & Poor’s 2.4%, the Russell 1000 Growth Index’s 7.1%, and the Russell 1000 Value Index’s -2.0% return for the same period. Year to date, the composite returned 29.1% compared to the 25.0%, 33.4%, and 14.4% returns for the indexes, respectively. In addition, you can check the fund’s top 5 holdings to know its best picks in 2024.
Wedgewood Partners highlighted stocks like Tractor Supply Company (NASDAQ:TSCO), in the fourth quarter 2024 investor letter. Tractor Supply Company (NASDAQ:TSCO) is a rural lifestyle retailer in the United States. The one-month return of Tractor Supply Company (NASDAQ:TSCO) was 0.56%, and its shares gained 15.31% of their value over the last 52 weeks. On January 15, 2025, Tractor Supply Company (NASDAQ:TSCO) stock closed at $53.10 per share with a market capitalization of $28.64 billion.
Wedgewood Partners stated the following regarding Tractor Supply Company (NASDAQ:TSCO) in its Q4 2024 investor letter:
“Tractor Supply Company (NASDAQ:TSCO) detracted from performance during the quarter after reporting a slight decline in earnings on sales that were relatively flat. Tractor Supply Company continues to be a best-in-class retailer, focused on serving their niche customers that live in and maintain rural homes and homesteads, often with higher-than-average incomes. During the height of Covid-19 in the U.S., the Company grew substantially faster than its historical rates. Since then, and as consumer spending patterns have over-corrected back towards services, we have seen growth normalize. However, the Company continues to exhibit excellent returns on capital and retains ample addressable market to continue driving expected double-digit earnings growth through 2030.”
An equestrian rider proudly leading a horse around a competition course.
Tractor Supply Company (NASDAQ:TSCO) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 29 hedge fund portfolios held Tractor Supply Company (NASDAQ:TSCO) at the end of the third quarter which was 35 in the previous quarter. Tractor Supply’s (NASDAQ:TSCO) net sales grew 1.6% in the third quarter while comparable sales down a slight 0.2%. While we acknowledge the potential of Tractor Supply Company (NASDAQ:TSCO) 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 Tractor Supply Company (NASDAQ:TSCO) and shared the list of best stocks for steady dividends. 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.
