CubeSmart (CUBE) Benefitted From Lower Interest Rate

Diamond Hill Capital, an investment management company, released its “Mid Cap Strategy” third-quarter 2024 investor letter. A copy of the letter can be downloaded here. The market added robust year-to-date gains in Q3. The portfolio underperformed the Russell Midcap Index in the quarter. The relative weakness is concentrated primarily among materials holdings. The strategy returned 8.53% (gross) and 8.34% (net) in the quarter compared to 9.21% for the index. In addition, you can check the top 5 holdings of the strategy to know its best picks in 2024.

Diamond Hill Mid Cap Strategy highlighted stocks like CubeSmart (NYSE:CUBE) in the third quarter 2024 investor letter. CubeSmart (NYSE:CUBE) is a self-managed and self-administered real estate investment trust. The one-month return of CubeSmart (NYSE:CUBE) was -2.53%, and its shares gained 23.80% of their value over the last 52 weeks. On November 13, 2024, CubeSmart (NYSE:CUBE) stock closed at $48.64 per share with a market capitalization of $11.06 billion.

Diamond Hill Mid Cap Strategy stated the following regarding CubeSmart (NYSE:CUBE) in its Q3 2024 investor letter:

“On an individual holdings basis, top contributors to return in Q3 included Regal Rexnord, NVR and CubeSmart (NYSE:CUBE). Similarly, shares of self-storage real estate investment trust (REIT) CubeSmart benefited from the broad tailwind of lower interest rates. The company continues delivering solid operating results, even in a slower real estate environment.”

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CubeSmart (NYSE:CUBE) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 23 hedge fund portfolios held CubeSmart (NYSE:CUBE) at the end of the second quarter which was 25 in the previous quarter. While we acknowledge the potential of CubeSmart (NYSE:CUBE) 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 CubeSmart (NYSE:CUBE) and shared the list of high growth real estate stocks that are profitable in 2024. In addition, please check out our hedge fund investor letters Q3 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.