ClearBridge Investments, an investment management company, released its “ClearBridge Large Cap Value Strategy” third quarter 2024 investor letter. A copy of the letter can be downloaded here. The third quarter experienced significant gains for U.S. equities, which recovered from a fear of slowing economic growth that had driven several asset markets into correction territory. A broad rebound was then induced by a 50 basis point interest rate drop by the Federal Reserve. The Russell 1000 Value Index generated a gain of 9.43% for the quarter. Against this backdrop, the ClearBridge Large Cap Value Strategy underperformed the benchmark Russell 1000 Value Index during the quarter. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.
ClearBridge Large Cap Value Strategy highlighted stocks like XPO, Inc. (NYSE:XPO), in the third quarter 2024 investor letter. XPO, Inc. (NYSE:XPO) offers freight transportation services that operate in North American LTL and European Transportation segments. The one-month return of XPO, Inc. (NYSE:XPO) was 5.65%, and its shares gained 52.79% of their value over the last 52 weeks. On October 11, 2024, XPO, Inc. (NYSE:XPO) stock closed at $115.54 per share with a market capitalization of $13.448 billion.
ClearBridge Large Cap Value Strategy stated the following regarding XPO, Inc. (NYSE:XPO) in its Q3 2024 investor letter:
“Among transports, we maintained our preference for less than truckload (LTL) provider XPO, Inc. (NYSE:XPO), to which we added during the period. We funded the XPO addition first by trimming and ultimately exiting United Parcel Service. UPS’s undemanding valuation notwithstanding, we think a healthier industry structure and better pricing dynamics make XPO a better longer-term investment.”
A convoy of freight trucks on a highway, reflecting industrial freight transportation.
XPO, Inc. (NYSE:XPO) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 37 hedge fund portfolios held XPO, Inc. (NYSE:XPO) at the end of the second quarter which was 47 in the previous quarter. XPO, Inc.’s (NYSE:XPO) Q2 2024 revenue increased 9% year-over-year to $2.1 billion. While we acknowledge the potential of XPO, Inc. (NYSE:XPO) 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 XPO, Inc. (NYSE:XPO) and shared Oppenheimer’s favorite stocks for the next 12 months and the top stock picks. ClearBridge Large Cap Value Strategy increased its holdings in XPO, Inc. (NYSE:XPO) in Q2 2024 as well. 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.