Diamond Hill Capital: “Rocky (RCKY) is Well Positioned to Navigate Industry Supply Chain Headwinds”

Diamond Hill Capital, an investment management firm, published its “Diamond Hill Small Cap Fund” fourth-quarter 2021 investor letter – a copy of which can be downloaded here. The portfolio outpaced the Russell 2000® Index in the quarter, adding to full-year outperformance. Relative performance was aided by our below-benchmark health care exposure, particularly its lack of exposure to biotechnology stocks which were down nearly 13% in the quarter and represent almost half the sector’s weight. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Diamond Hill Small Cap Fund, in its Q4 2021 investor letter, mentioned Rocky Brands, Inc. (NASDAQ: RCKY) and discussed its stance on the firm. Rocky Brands, Inc. is a Nelsonville, Ohio-based footwear manufacturing company with a $287.9 million market capitalization. RCKY delivered a -0.90% return since the beginning of the year, while its 12-month returns are up by -9.52%. The stock closed at $39.44 per share on February 25, 2022.

Here is what Diamond Hill Small Cap Fund has to say about Rocky Brands, Inc. in its Q4 2021 investor letter:

“Rocky Brands is a footwear manufacturer and distributor focused on the work, Western, outdoor and military boot markets. Management has improved operations in recent years, but temporary fulfillment issues associated with the integration of its transformational acquisition of Honeywell’s footwear brands allowed us to initiate a position at a discount to our estimate of intrinsic value. We believe Rocky is well positioned to navigate industry supply chain headwinds and exit the disruptions as a leader in the relatively stable boot category.”

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Our calculations show that Rocky Brands, Inc. (NASDAQ: RCKY) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. RCKY was in 8 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 10 funds in the previous quarter. Rocky Brands, Inc. (NASDAQ: RCKY) delivered a 9.62% return in the past 3 months.

In February 2022, we also shared another hedge fund’s views on RCKY in another article. You can find other letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.

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