CubeSmart (CUBE) Fell on Rise in 10-Year Treasury Yields

Diamond Hill Capital, an investment management company, released its “Mid Cap Strategy” fourth-quarter 2024 investor letter. A copy of the letter can be downloaded here. Q4 witnessed an uneven increase in markets, capping off yet another positive year for the markets. In general, equities rose after the US election, but some gave up most or all of those gains by the end of the year. The portfolio trailed the Russell Midcap Index in Q4 and for the full year. The strategy returned -2.18% (gross) and -2.35% (net) in the quarter compared to 0.62% for the index. For the full year, the strategy returned 11.39% (gross) and 10.61% (net) compared to 15.34% return 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 Mid Cap Strategy emphasized stocks such as CubeSmart (NYSE:CUBE). CubeSmart (NYSE:CUBE) is a self-managed and self-administered real estate investment trust. The one-month return of CubeSmart (NYSE:CUBE) was 1.66%, and its shares lost 0.98% of their value over the last 52 weeks. On March 18, 2025, CubeSmart (NYSE:CUBE) stock closed at $42.30 per share with a market capitalization of $9.69 billion.

Diamond Hill Mid Cap Strategy stated the following regarding CubeSmart (NYSE:CUBE) in its Q4 2024 investor letter:

“Other bottom contributors included CubeSmart (NYSE:CUBE), NVR and Freeport-McMoRan. Shares of self-storage real estate investment trust (REIT) CubeSmart and homebuilder NVR were pressured in Q4 against a backdrop of rising 10 year Treasury yields, which are likely to impact the housing market and slow home sales.”

Is CubeSmart (CUBE) the Best Warehouse and Self-Storage Stock to Buy Now?

A row of self-storage units in a self-storage complex, showing the affordability and security offered by the company.

CubeSmart (NYSE:CUBE) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 37 hedge fund portfolios held CubeSmart (NYSE:CUBE) at the end of the fourth quarter compared to 26 in the third 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 best self-storage and apartment stocks to invest in. CubeSmart (NYSE:CUBE) was a key contributor to Diamond Hill Mid Cap Strategy’s Q3 2024 returns. 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.