Wedgewood Partners, an investment management company, released its third-quarter 2024 investor letter. A copy of the letter can be downloaded here. In the third quarter, Wedgewood Composite’s net return was 5.8% compared to the Standard & Poor’s 5.9%, the Russell 1000 Growth Index’s 3.2%, and the Russell 1000 Value Index’s 9.4% return for the same period. Year to date, the composite returned 22.4% compared to the 22.1%, 24.6%, and 16.7% 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 Apple Inc. (NASDAQ:AAPL), in the third quarter 2024 investor letter. Apple Inc. (NASDAQ:AAPL) is an American multinational company that designs, manufactures, and markets smartphones, personal computers, tablets, wearables, and accessories. The one-month return of Apple Inc. (NASDAQ:AAPL) was 1.42%, and its shares gained 38.27% of their value over the last 52 weeks. On September 20, 2024, Apple Inc. (NASDAQ:AAPL) stock closed at $230.76 per share with a market capitalization of $3.508 trillion.
Wedgewood Partners stated the following regarding Apple Inc. (NASDAQ:AAPL) in its Q3 2024 investor letter:
“Apple Inc. (NASDAQ:AAPL) also contributed to performance as investors continued to favorably discount the recent unveiling of its AI strategy. As we have noted in the past, the Company has been at the forefront of proprietary semiconductor computer processor development for well over a decade. Given the compute-intensive nature of AI applications, Apple is well situated to develop a suite of compelling, consumer-friendly AI services that are also cost-effective. Apple’s AI value proposition should compel consumers to continue growing their engagement in the Apple ecosystem over the next several years.”
A busy sidewalk filled with people using Apple devices like iPhones, iPads and Apple Watches.
Apple Inc. (NASDAQ:AAPL) is in 9th position on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 184 hedge fund portfolios held Apple Inc. (NASDAQ:AAPL) at the end of the second quarter which was 150 in the previous quarter. In the June quarter Apple Inc. (NASDAQ:AAPL) delivered $85.8 billion in revenues, up 5% from a year ago. While we acknowledge the potential of Apple Inc. (NASDAQ:AAPL) 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.
