Old Dominion Freight Line (ODFL) Rose on Higher Future Growth Prospects
Wedgewood Partners, an investment management company, released its “Wedgewood Partners Large Cap Focused Growth Fund” third quarter 2023 investor letter. A copy of the same can be downloaded here. In the third quarter, Wedgewood Composite’s net return was -2.4% compared to the Standard & Poor’s -3.3%, Russell 1000 Growth Index’s -3.1%, and Russell 1000 Value Index’s -3.2% return for the same period. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Wedgewood Partners highlighted stocks like Old Dominion Freight Line, Inc. (NASDAQ:ODFL) in the third quarter 2023 investor letter. Headquartered in Thomasville, North Carolina, Old Dominion Freight Line, Inc. (NASDAQ:ODFL) is a less-than-truckload (LTL) motor carrier. On October 20, 2023, Old Dominion Freight Line, Inc. (NASDAQ:ODFL) stock closed at $393.03 per share. One-month return of Old Dominion Freight Line, Inc. (NASDAQ:ODFL) was -3.79%, and its shares gained 45.99% of their value over the last 52 weeks. Old Dominion Freight Line, Inc. (NASDAQ:ODFL) has a market capitalization of $42.946 billion.
Wedgewood Partners made the following comment about Old Dominion Freight Line, Inc. (NASDAQ:ODFL) in its Q3 2023 investor letter:
"In addition, we would like to comment on Old Dominion Freight Line, Inc. (NASDAQ:ODFL), which contributed to the performance during the quarter as the market discounted higher future growth prospects after one of the Company's largest competitors ceased operations. In addition, freight volumes continued to methodically recover after very difficult comparisons from a year ago, and pricing (ex-fuel) remained well above headline inflation. Although Old Dominion is rarely found in growth portfolios, it is one of the best growth stories of the past decade, with revenues tripling and operating income up more than six-fold. Much of this has to do with how much more efficiently the Company is operated relative to its competitors, which are saddled with a disproportionate amount of the legacy pension liabilities of the less-than-truckload (LTL) industry. Furthermore, the seemingly perpetual growth in demand for faster retail shipping as well as the declining reliability of competing modes of transportation (i.e., railroad and TL-truckload), continue to drive favorable long-term dynamics for LTL providers. That said, we trimmed positions in Old Dominion during the quarter as the market became too aggressive in its growth assumptions related to market share take after YRC Freight ceased operations."
A large fleet of freight trucks travelling down an interstate highway. Editorial photo for a financial news article. 8k. --ar 16:9
Old Dominion Freight Line, Inc. (NASDAQ:ODFL) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 25 hedge fund portfolios held Old Dominion Freight Line, Inc. (NASDAQ:ODFL) at the end of second quarter which was 37 in the previous quarter.
We discussed Old Dominion Freight Line, Inc. (NASDAQ:ODFL) in another article and shared the list of biggest logistics companies in the US. In addition, please check out our hedge fund investor letters Q3 2023 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.
