Wells Fargo & Company (WFC) Continues to Make Profit. Here’s Why

Diamond Hill Capital, an investment management company, released its “Large Cap Strategy” fourth-quarter 2024 investor letter. A copy of the letter can be downloaded here. Despite inconsistent Q4 gains, markets ended the year positively. The portfolio trailed the Russell 1000 Index benchmark in Q4 and 2024. In Q4, the strategy returned -2.27% (net) vs 2.75% returns for the index and in 2024 the strategy returned 12.06% (net) vs 24.51% returns for the index. To get an idea of the fund’s best choices for 2024, check out its top 5 positions.

In its fourth quarter 2024 investor letter, Diamond Hill Large Cap Strategy emphasized stocks such as Wells Fargo & Company (NYSE:WFC). Wells Fargo & Company (NYSE:WFC) is a diversified financial services company. The one-month return Wells Fargo & Company (NYSE:WFC) was -6.43%, and its shares gained 26.94% of their value over the last 52 weeks. On March 20, 2025, Wells Fargo & Company (NYSE:WFC) stock closed at $72.52 per share with a market capitalization of $236.789 billion.

Diamond Hill Large Cap Strategy stated the following regarding Wells Fargo & Company (NYSE:WFC) in its Q4 2024 investor letter:

“Among our other top Q4 contributors were Amazon, Wells Fargo & Company (NYSE:WFC) and Bank of America. Banking and financial services companies Wells Fargo and Bank of America benefited from broadly improved sentiment around banks as the market anticipates lower regulatory pressures under the incoming presidential administration. Wells Fargo also continues making progress growing its fee revenues and improving operating efficiency.”

Is Wells Fargo & Company (WFC) the Best Holding Company Stock to Buy Right Now?

A team of bankers in suits, discussing the success of the company’s banking products.

Wells Fargo & Company (NYSE:WFC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 96 hedge fund portfolios held Wells Fargo & Company (NYSE:WFC) at the end of the fourth quarter which was 72 in the previous quarter. While we acknowledge the potential of Wells Fargo & Company (NYSE:WFC) 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 Wells Fargo & Company (NYSE:WFC) and shared the list of best and cheap stocks to buy according to billionaires. 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.