Diamond Hill Capital, an investment management company, released its “Large Cap Strategy” third-quarter 2024 investor letter. A copy of the letter can be downloaded here. Although there was some volatility, markets contributed to strong year-to-date gains in Q3. US stocks increased by 6%, as measured by the Russell 3000 Index, with small- and mid-cap equities accounting for most gains. This is a significant change. The strategy outperformed the Russell 1000 Index in Q3 and returned 7.84% (net) vs 6.08% for the index. In addition, you can check the top 5 holdings of the strategy to know its best picks in 2024.

Diamond Hill Large Cap Strategy highlighted stocks like Accenture plc (NYSE:ACN), in the third quarter 2024 investor letter. Accenture plc (NYSE:ACN) is a professional services company that provides management consulting, technology, and outsourcing services. The one-month return of Accenture plc (NYSE:ACN) was -0.74%, and its shares gained 7.89% of their value over the last 52 weeks. On November 22, 2024, Accenture plc (NYSE:ACN) stock closed at $358.66 per share with a market capitalization of $224.111 billion.

Diamond Hill Large Cap Strategy stated the following regarding Accenture plc (NYSE:ACN) in its Q3 2024 investor letter:

"We continue finding compelling new ideas, even as the bull market proceeds. In Q3, we initiated three new positions in Aon, Accenture plc (NYSE:ACN) and Builders FirstSource. Accenture is a leading global IT services and consultancy business. We think the services it provides — which are differentiated and in specialty areas relative to many of its peers — are critical and will be in high demand in the technology ecosystem for years to come. This should contribute to stable prices and margins. We believe the market is undervaluing Accenture relative to the opportunity ahead of it and, consequently, were able to initiate a position in the quarter at a discounted share price."

A team of data experts gathered around a computer monitor analyzing customer data.

Accenture plc (NYSE:ACN) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 60 hedge fund portfolios held Accenture plc (NYSE:ACN) at the end of the third quarter which was 68 in the previous quarter. While we acknowledge the potential of Accenture plc (NYSE:ACN) 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 Accenture plc (NYSE:ACN) and shared the list of best predictive analytics stocks to invest in. In addition, please check out our hedge fund investor letters Q3 2024 page for more investor letters from hedge funds and other leading investors.

READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks.

Disclosure: None. This article is originally published at Insider Monkey.