Diamond Hill Capital, an investment management company, released its “Large Cap Concentrated Fund” fourth-quarter 2024 investor letter. A copy of the letter can be downloaded here. Q4 saw an uneven increase in markets, capping off yet another strong year for the markets. Stocks broadly increased after the US election, but some gave up most or all of those gains before the end of the year. Against this backdrop, the portfolio trailed the Russell 1000 Index in Q4 and for the full year. The fund returned -2.00% (net) in Q4 vs 2.75% for the index. For the full year, the fund returned 14.24% compared to 24.51% for the index. In addition, you can check the top 5 holdings of the strategy to know its best picks in 2024.
In its fourth quarter 2024 investor letter, Diamond Hill Large Cap Concentrated Fund emphasized stocks such as Bank of America Corporation (NYSE:BAC). Bank of America Corporation (NYSE:BAC) offers various financial products and services for individual consumers, small and middle-market businesses, institutional investors, large corporations, and governments. The one-month return of Bank of America Corporation (NYSE:BAC) was -12.93%, and its shares gained 13.55% of their value over the last 52 weeks. On March 14, 2025, Bank of America Corporation (NYSE:BAC) stock closed at $40.89 per share with a market capitalization of $310.879 billion.
Diamond Hill Large Cap Concentrated Fund stated the following regarding Bank of America Corporation (NYSE:BAC) in its Q4 2024 investor letter:
“Other top Q4 contributors included Bank of America Corporation (NYSE:BAC), Parker-Hannifin and Labcorp. Banking and financial services company Bank of America benefited from broadly improved sentiment around banks as the market anticipates lower regulatory pressures under the incoming presidential administration. Shares also received a sentiment boost from growing optimism for better loan growth in the period ahead.”
A professional checking out money market accounts on a laptop reflecting the company’s commitment to online banking.
Bank of America Corporation (NYSE:BAC) is in 24th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 113 hedge fund portfolios held Bank of America Corporation (NYSE:BAC) at the end of the fourth quarter which was 98 in the previous quarter. While we acknowledge the potential of Bank of America Corporation (NYSE:BAC) 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 Bank of America Corporation (NYSE:BAC) and shared the list of best dividend stocks that are incredibly cheap. 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.