Diamond Hill Capital: “Allegiant Remains Well Positioned to Benefit From Pent-Up Demand”

Diamond Hill Capital, an investment management firm, published its “Diamond Hill Mid Cap Fund” first-quarter 2022 investor letter – a copy of which can be downloaded here. Diamond Hill invests on behalf of clients through a shared commitment to its valuation-driven investment principles, long-term perspective, capacity discipline, and client alignment. Amid a rocky market quarter overall, Diamond Hill Mid Cap Fund’s negative returns still outpaced the Russell Midcap Index by a healthy margin in Q1. Try to take some time looking at the fund’s top 5 holdings to be informed about their best picks for 2022.

In its Q1 2022 investor letter, Diamond Hill Mid Cap Fund mentioned Allegiant Travel Company (NASDAQ:ALGT) and explained its insights for the company. Founded in 1997, Allegiant Travel Company (NASDAQ:ALGT) is a Las Vegas, Nevada-based airline company with a $2.0 billion market capitalization. Allegiant Travel Company (NASDAQ:ALGT) delivered a -39.19% return since the beginning of the year, while its 12-month returns are down by -38.99%. The stock closed at $113.74 per share on July 13, 2022.

Here is what Diamond Hill Mid Cap Fund has to say about Allegiant Travel Company (NASDAQ:ALGT) in its Q1 2022 investor letter:

“Shares of airline operator Allegiant came under pressure starting in Q4 from the rising omicron wave. Subsequently, share prices were further pressured by rising fuel prices driven, in part, by Russia’s invasion of Ukraine. We took the opportunity of near-term weakness to initiate an investment at what appeared to be an attractive discount to our estimate of intrinsic value. We believe Allegiant remains well positioned to benefit from pent-up demand. Leisure travel, where Allegiant is focused, has been recovering first, and Allegiant is differentiated by a more flexible route structure than peers.

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Our calculations show that Allegiant Travel Company (NASDAQ:ALGT) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Allegiant Travel Company (NASDAQ:ALGT) was in 24 hedge fund portfolios at the end of the first quarter of 2022, compared to 24 funds in the previous quarter. Allegiant Travel Company (NASDAQ:ALGT) delivered a -27.72% return in the past 3 months.

In September 2021, we also shared another hedge fund’s views on Allegiant Travel Company (NASDAQ:ALGT) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q1 page.

Disclosure: None. This article is originally published at Insider Monkey.