ClearBridge Investments, an investment management company, released its “ClearBridge All Cap Growth Strategy” third quarter 2024 investor letter. A copy of the letter can be downloaded here. In the third quarter, the U.S. equities market experienced a brief decline due to disappointing employment statistics, causing an increase in volatility. Stocks surged after the Federal Reserve dropped interest rates by 50 basis points, resulting in wide gains for the period. The strategy performed in line with the benchmark in a value-driven market, with increased participation from positions in health care and communication services. In addition, please check the fund’s top five holdings to know its best picks in 2024.
ClearBridge All Cap Growth Strategy highlighted stocks like Builders FirstSource, Inc. (NYSE:BLDR) in the third quarter 2024 investor letter. Based in Irving, Texas, Builders FirstSource, Inc. (NYSE:BLDR) is a building material, manufactured components, and construction services provider. The one-month return of Builders FirstSource, Inc. (NYSE:BLDR) was -0.99%, and its shares gained 18.25% of their value over the last 52 weeks. On December 9, 2024, Builders FirstSource, Inc. (NYSE:BLDR) stock closed at $176.89 per share with a market capitalization of $20.36 billion.
ClearBridge All Cap Growth Strategy stated the following regarding Builders FirstSource, Inc. (NYSE:BLDR) in its Q3 2024 investor letter:
“New addition Builders FirstSource, Inc. (NYSE:BLDR), the largest U.S. distributor of building products, prefabricated components and value-added services to professional homebuilders, fits into this “mid cap plus” buy range. An organic share gainer, we see opportunity for BLDR to continue to consolidate share in a fragmented building products distribution market and believe its investments in digital capabilities (3D models and collaboration tools), which smaller competitors do not have the scale to match, can help accelerate share gains.”
A crane lifting a truss during the construction of a new building.
Builders FirstSource, Inc. (NYSE:BLDR) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 55 hedge fund portfolios held Builders FirstSource, Inc. (NYSE:BLDR) at the end of the third quarter which was 59 in the previous quarter. Builders FirstSource, Inc.’s (NYSE:BLDR) third quarter sales were $4.2 billion, a decrease of 6.7% compared to Q3 2023. While we acknowledge the potential of Builders FirstSource, Inc. (NYSE:BLDR) 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 Builders FirstSource, Inc. (NYSE:BLDR) and shared Diamond Hill Large Cap Strategy’s views on the company. In addition, please check out our hedge fund investor letters Q3 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.