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Weitz Investment Management, an investment management firm, released its “Large Cap Equity Fund” third-quarter 2024 investor letter. A copy of the letter can be downloaded here. In the third quarter, the fund’s Institutional Class returned 7.84% compared to a +6.08% return for the Russell 1000 Index. As AI fever subsided, stock gains were widespread. Value stocks outperformed higher-flying growth stocks, while small and medium-sized businesses took the lead. In addition, you can check the fund’s top 5 holdings to find out its best picks for 2024.
Weitz Large Cap Equity Fund highlighted stocks like Global Payments Inc. (NYSE:GPN), in the third quarter 2024 investor letter. Global Payments Inc. (NYSE:GPN) provides payment technology and software solutions for card, check, and digital-based payments. The one-month return of Global Payments Inc. (NYSE:GPN) was 17.35%, and its shares gained 3.29% of their value over the last 52 weeks. On November 21, 2024, Global Payments Inc. (NYSE:GPN) stock closed at $116.33 per share with a market capitalization of $29.605 billion.
Weitz Large Cap Equity Fund stated the following regarding Global Payments Inc. (NYSE:GPN) in its Q3 2024 investor letter:
"We continued to increase the Fund's positions in Global Payments Inc. (NYSE:GPN) and Idex Corp. during the quarter. Both stocks trade at significant discounts to our business value estimates. The companies have fundamental catalysts that could drive the stocks, but the timetable may have slipped a bit. The challenge is that investors want results now, especially in a bull market. We have specific milestones to track, and we think their achievement can be measured in quarters rather than years. In our view, the potential payoffs are well worth the wait."
A payment terminal in action with customers apart of the experience.
Global Payments Inc. (NYSE:GPN) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 66 hedge fund portfolios held Global Payments Inc. (NYSE:GPN) at the end of the third quarter which was 66 in the previous quarter. In the third quarter, Global Payments Inc. (NYSE:GPN) reported adjusted net revenue of $2.36 billion, an increase of 6% from the prior year. While we acknowledge the potential of Global Payments Inc. (NYSE:GPN) 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.