Cal-Maine Foods (CALM) is Well Positioned to Benefit from Cage-Free and Specialty Eggs

Diamond Hill Capital, an investment management company, released its “Small Cap Fund” third-quarter 2023 investor letter. A copy of the same can be downloaded here. During Q3 2023, US stocks fell by 3%, bringing YTD gains to around 12% as measured by the Russell 3000 Index. The portfolio trailed the Russell 2000 Index in Q3 and returned -5.62% bringing the YTD returns to 6.70%. Relative weakness in consumer discretionary holdings, industrials, and technology impacted the performance in the quarter. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.

Diamond Hill Small Cap Fund highlighted stocks like Cal-Maine Foods, Inc. (NASDAQ:CALM) in the third quarter 2023 investor letter. Headquartered in Ridgeland, Mississippi, Cal-Maine Foods, Inc. (NASDAQ:CALM) operates as a specialty shell egg company that produces, grades, packages, markets, and distributes shell eggs. On November 8, 2023, Cal-Maine Foods, Inc. (NASDAQ:CALM) stock closed at $48.17 per share. One-month return of Cal-Maine Foods, Inc. (NASDAQ:CALM) was 0.12%, and its shares glost 16.95% of their value over the last 52 weeks. Cal-Maine Foods, Inc. (NASDAQ:CALM) has a market capitalization of $2.369 billion.

Diamond Hill Small Cap Fund made the following comment about Cal-Maine Foods, Inc. (NASDAQ:CALM) in its Q3 2023 investor letter:

“On an individual holdings’ basis, top contributors to return in Q3 included Civitas Resources and Cal-Maine Foods, Inc. (NASDAQ:CALM). Fresh egg producer Cal-Maine Foods has positioned itself well to capitalize on the growing trend toward cage-free and specialty eggs. In May, the US Supreme Court upheld Proposition 12, whereby California can dictate only cage-free eggs be sold in the state — an outcome which will likely open the door for other states to either institute or maintain similar mandates, and which should drive increased long-term demand for Cal-Maine Foods’ eggs.”

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Cal-Maine Foods, Inc. (NASDAQ:CALM) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 26 hedge fund portfolios held Cal-Maine Foods, Inc. (NASDAQ:CALM) at the end of second quarter which was 28 in the previous quarter.

We discussed Cal-Maine Foods, Inc. (NASDAQ:CALM) in another article and shared the list of biggest stocks with negative beta. 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.