River Road Asset Management, an investment management company released its “River Road Large Cap Value Select Fund” Q4 2024 investor letter. A copy of the letter can be downloaded here. In the fourth quarter, AMG River Road Large Cap Value Select Fund returned 0.43% compared to (1.98%) return for the Russell 1000® Value Index. For the year 2024, the fund returned 24.59% significantly outperforming Index return of 14.37%. Stocks rallied in November after a Republican victory but declined sharply following hawkish Fed comments. Shorter duration stocks, including small caps and value, lost most of their post-election gains by the end of December. For more information on the fund’s best picks in 2024, please check its top five holdings.

In its fourth quarter 2024 investor letter, River Road Large Cap Value Select Fund emphasized stocks such as United Parcel Service, Inc. (NYSE:UPS). United Parcel Service, Inc. (NYSE:UPS) is a package delivery and logistics company, that offers transportation and delivery services. The one-month return of United Parcel Service, Inc. (NYSE:UPS) was -6.74%, and its shares lost 25.31% of their value over the last 52 weeks. On March 27, 2025, United Parcel Service, Inc. (NYSE:UPS) stock closed at $111.01 per share with a market capitalization of $94.085 billion.

River Road Large Cap Value Select Fund stated the following regarding United Parcel Service, Inc. (NYSE:UPS) in its Q4 2024 investor letter:

"As of December 31, the portfolio held 29 positions, up four positions from Q3. During Q4, the largest sector increase was 736 bps within industrials, while the largest decrease was -276 bps within consumer discretionary. We established five new positions and eliminated one position

We also initiated a position in United Parcel Service, Inc. (NYSE:UPS) (Cl B) (UPS, 3.0 conviction), the world’s largest package delivery company, which handles over six billion packages annually and can reach 90% of the world’s gross domestic product (GDP) within a day. After years of elevated network investments to expand capacity, UPS has refocused its strategy on growing return on invested capital (ROIC). We believe the stock will rerate higher as margins, which we believe have bottomed, are expected to expand with the price per package growing faster than the cost per package. In the interim, investors collect a 5% dividend, which has grown in 21 out of 24 years since UPS went public. The dividend is supported by healthy free cash flow and an investment grade balance sheet with ~1x net leverage."

A warehouse filled with boxes of parcels, symbolizing the companies reliable logistics services.

United Parcel Service, Inc. (NYSE:UPS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 59 hedge fund portfolios held United Parcel Service, Inc. (NYSE:UPS) at the end of the fourth quarter compared to 43 in the third quarter. United Parcel Service, Inc. (NYSE:UPS) posted $25.3 billion in revenues during Q4, marking a 1.5% increase from the previous year's quarter. While we acknowledge the potential of United Parcel Service, Inc. (NYSE:UPS) 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.

We covered United Parcel Service, Inc. (NYSE:UPS) in another article, where we shared the list of best industrial stocks that pay dividends. In addition, please check out our hedge fund investor letters Q4 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.