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Polaris Capital Management, an investment management company, released its third quarter 2024 investor letter. A copy of the same can be downloaded here. Global markets were in solidly positive territory for the third straight quarter of 2024 despite geopolitical volatility. Polaris Global Equity Composite (net of fees) returned 6.86% in the quarter, compared to 6.46% return for the MSCI World Index, gross dividends reinvested. In addition, check the fund’s top five holdings to know its best picks in 2024.
Polaris Global Equity Strategy highlighted stocks like Allison Transmission Holdings, Inc. (NYSE:ALSN), in the third quarter 2024 investor letter. Allison Transmission Holdings, Inc. (NYSE:ALSN) designs, builds, and sells fully automatic transmissions for medium- and heavy-duty commercial vehicles, U.S. defense vehicles, and electrified propulsion systems globally. The one-month return of Allison Transmission Holdings, Inc. (NYSE:ALSN) was -8.65%, and its shares gained 87.13% of their value over the last 52 weeks. On December 20, 2024, Allison Transmission Holdings, Inc. (NYSE:ALSN) stock closed at $109.30 per share with a market capitalization of $9.468 billion.
Polaris Global Equity Strategy stated the following regarding Allison Transmission Holdings, Inc. (NYSE:ALSN) in its Q3 2024 investor letter:
"Allison Transmission Holdings, Inc. (NYSE:ALSN) was the top overall portfolio contributor, leading the industrial sector. The heavy-duty truck transmission supplier reported record quarterly net sales, driven by all-time highs in the North American on-highway end market. Performance was strengthened by year-over-year increases in defense and other end markets, while the company eyed up expansion partnerships in Vietnam and Indonesia, to name a few."
A carpenter installing an aluminum die cast component in the engine of a commercial vehicle.
Allison Transmission Holdings, Inc. (NYSE:ALSN) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 31 hedge fund portfolios held Allison Transmission Holdings, Inc. (NYSE:ALSN) at the end of the third quarter which was 30 in the previous quarter. Allison Transmission Holdings, Inc.’s (NYSE:ALSN) year-over-year net sales in the third quarter increased 12% to a record of $824 million. While we acknowledge the potential of Allison Transmission Holdings, Inc. (NYSE:ALSN) 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.