Investment advisor Madison Investments has released its Q3 2024 investor letter for the Madison Midcap Fund. A copy of the letter can be downloaded here. The fund (Class Y) returned 7.17% in the third quarter, compared to a 9.21% gain for the Russell Midcap Index. For the first nine months of the year, the fund returned 12.44%, compared to the index’s return of 14.63%. Plus, check out the fund’s top 5 holdings to find out the best stocks for 2024.
Madison Midcap Fund highlighted stocks like CarMax, Inc. (NYSE:KMX) in its Q3 2024 investor letter. CarMax, Inc. (NYSE:KMX) is a used car retailer headquartered in Richmond, Virginia. CarMax, Inc. (NYSE:KMX) has a 1-month return of -1.29%, and the company’s stock has increased 19.54% in value over the past 52 weeks. On October 17, 2024, CarMax, Inc. (NYSE:KMX) stock closed at $75.12 per share, giving it a market cap of $11.638 billion.
Madison Mid Cap Fund says the following about CarMax, Inc. (NYSE:KMX) in its Q3 2024 investor letter:
“We have reduced our positions in Moelis and CarMax. We have also reduced our position in CarMax, Inc. (NYSE:KMX) in line with the addition of two auto retailers. Although we are positive about the outlook for CarMax, We want to ensure that we manage a portfolio of ‘overall exposure to the new and used car market. ”
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Happy customer inspecting newly purchased used car with the help of sales assistant.
CarMax, Inc. (NYSE:KMX) isn’t included in our list of 31 most popular stocks among hedge funds. According to our database, 35 hedge fund portfolios held CarMax (NYSE:KMX) at the end of the second quarter, compared to 42 in the prior quarter. The company reported total sales of $7 billion in the second quarter of fiscal 2025, down 1% year over year. While we see CarMax’s (NYSE:KMX) potential as an investment, we believe AI stocks have a better chance of delivering higher returns and in a shorter time frame. If you’re looking for an AI stock with as much promise as NVIDIA, but trading at less than 5x earnings, check out our report on the cheapest AI stocks.
In another article, we covered CarMax, Inc. (NYSE:KMX) and shared Goldman Sachs’ list of stocks with the highest consensus return on equity (ROE). Additionally, for investor letters from hedge funds and other leading investors, please visit our Hedge Fund Investor Letters Q3 2024 page.
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Disclosure: None. This article was originally published on Insider Monkey.
