Columbia Threadneedle Investments, an investment management company released its “Columbia Dividend Opportunity Fund” third quarter 2024 investor letter. A copy of the letter can be downloaded here. Equity markets rose again in the third quarter, helping most major indices finish near record levels in September. The fund's investments rose across all sectors except energy, where stocks were pressured by falling crude oil prices. The fund returned 9.51% in the quarter compared to the MSCI USA High Dividend Yield Index–Net’s 9.42% return. In addition, you can check the fund’s top 5 holdings for its best picks for 2024.

Columbia Dividend Opportunity Fund highlighted stocks like  Kellanova (NYSE:K), in the third quarter 2024 investor letter. Kellanova (NYSE:K) engages in the manufacturing and marketing of snacks and convenience foods. The one-month return of Kellanova (NYSE:K) was 0.67%, and its shares gained 55.15% of their value over the last 52 weeks. On November 25, 2024, Kellanova (NYSE:K) stock closed at $81.11 per share with a market capitalization of $27.958 billion.

Columbia Dividend Opportunity Fund stated the following regarding Kellanova (NYSE:K) in its Q3 2024 investor letter:

"Elsewhere in the portfolio, the consumer staples stock Kellanova was a top contributor to relative performance. The company, which represents the snack division that was separated from Kellogg’s in a spin-off, was bid for by Mars. 3M, which the fund purchased in the second quarter, was also a top contributor thanks to a better-than-expected earnings report and investors’ growing confidence in the company’s new chief executive officer."

A stack of grocery bags filled with ready-to-eat cereals, frozen waffles, and savory snacks.

Kellanova (NYSE:K) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 64 hedge fund portfolios held Kellanova (NYSE:K) at the end of the third quarter which was 45 in the previous quarter. While we acknowledge the potential of Kellanova (NYSE:K) 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 Kellanova (NYSE:K) and shared Longleaf Partners Fund's views on the company. 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.