Diamond Hill Capital, an investment management company, released its “Long-Short Fund” fourth-quarter 2023 investor letter. A copy of the same can be downloaded here. The portfolio achieved positive returns in Q4, but it trailed the Russell 1000 Index and the blended benchmark (60% Russell 1000 Index/40% Bloomberg US Treasury Bills 1-3 Month Index). The short positions didn’t perform as well as the index, but they still contributed positively to the overall performance. The long positions in financials, on the other hand, performed better than the index. However, long positions in technology and the fund’s below-benchmark exposure didn’t perform well and were the cause of underperformance in Q4. In addition, you may look at the fund’s top 5 holdings to learn about its best picks in 2023.
Diamond Hill Long-Short Fund featured stocks like Citigroup Inc. (NYSE:C) in the fourth quarter 2023 investor letter. Headquartered in New York, New York, Citigroup Inc. (NYSE:C) is a diversified financial service holding company. On April 3, 2024, Citigroup Inc. (NYSE:C) stock closed at $61.69 per share. One-month return of Citigroup Inc. (NYSE:C) was 6.88%, and its shares lost 34.52% of their value over the last 52 weeks. Citigroup Inc. (NYSE:C) has a market capitalization of $120.356 billion.
Diamond Hill Long-Short Fund stated the following regarding Citigroup Inc. (NYSE:C) in its fourth quarter 2023 investor letter:
“On an individual holdings’ basis, top contributors to return in Q4 were all from our long book, including KKR, Citigroup Inc. (NYSE:C) and Truist Financial. Banking and financial services companies Citigroup and Truist Financial rallied alongside large-cap banks broadly in Q4 as the market focused less on interest-rate risks amid the Fed’s announcement it was likely done raising interest rates. Banks also likely benefited from a relief rally following three-plus quarters of negative sentiment to start the year. Industry trends aside, however, we maintain our conviction in both companies. Under new leadership, Citigroup continues improving its position relative to competitors and has an attractive opportunity to close its valuation gap relative to peers, while Truist has compelling exposure to attractive geographies in the Southeast and Mid-Atlantic as well as to the insurance brokerage business which should allow the company to generate above average returns over time.”
Citigroup Inc. (NYSE:C) is not on our list of 30 Most Popular Stocks Among Hedge Funds. At the end of the fourth quarter, Citigroup Inc. (NYSE:C) was held by 87 hedge fund portfolios, up from 79 in the previous quarter, according to our database.
We discussed Citigroup Inc. (NYSE:C) in another article and shared the list of best stocks to buy according to financial media. In addition, please check out our hedge fund investor letters Q4 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.
