Diamond Hill Capital, an investment management company, released its “Select Strategy” second-quarter 2024 investor letter. A copy of the letter can be downloaded here. In Q2, markets saw a modest boost, delivering positive returns across the majority of regions and nations. The Russell 3000 Index showed a +3% increase in US stocks; however, the majority of the gains came from large-cap stocks, which increased by about +4%. Returns were negative across the cap spectrum, with mid-caps and small caps, as indicated by their respective Russell indices, each down about -3%. The portfolio underperformed the Russell 3000 Index in Q2 and returned -4.96% net of fees compared to 3.22% for the index. In addition, you can check the fund’s top 5 holdings to find out its best picks for 2024.
Diamond Hill Select Strategy highlighted stocks like Coherent Corp. (NYSE:COHR) in the second quarter 2024 investor letter. Coherent Corp. (NYSE:COHR) manufactures and distributes engineered materials and optoelectronic components and devices. The one-month return of Coherent Corp. (NYSE:COHR) was -10.58%, and its shares gained 38.79% of their value over the last 52 weeks. On July 30, 2024, Coherent Corp. (NYSE:COHR) stock closed at $65.15 per share with a market capitalization of $9.933 billion.
Diamond Hill Select Strategy stated the following regarding Coherent Corp. (NYSE:COHR) in its Q2 2024 investor letter:
“Other top individual contributors in the quarter included Coherent Corp. (NYSE:COHR) and new holding International Paper Company. Coherent is a global leader in materials, networking and lasers for the industrial, communications, electronics and instrumentation markets. The company is benefiting from rapid growth in AI-related transceiver sales. Investors were also seemingly encouraged by Jim Anderson’s hire as the new CEO. Anderson came from Lattice Semiconductor, where he had an excellent track record.”
A row of precision industrial lasers in action, cutting the most intricate of shapes.
Coherent Corp. (NYSE:COHR) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 50 hedge fund portfolios held Coherent Corp. (NYSE:COHR) at the end of the first quarter which was 35 in the previous quarter. During the fiscal third quarter of 2024, COHR recorded a sequential revenue growth of almost 7% and $0.17, or a sequential non-GAAP EPS increase of nearly 50%. While we acknowledge the potential of Coherent Corp. (NYSE:COHR) 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 Coherent Corp. (NYSE:COHR) and shared the list of under the radar stocks with massive upside for 2024. Diamond Hill Select Strategy established a position in Coherent Corp. (NYSE:COHR) during Q4 2023. In addition, please check out our hedge fund investor letters Q2 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.
