Diamond Hill Capital, an investment management company, released its “Long-Short Fund” first-quarter 2024 investor letter. A copy of the letter can be downloaded here. The portfolio achieved positive returns in Q4 but trailed the Russell 1000 Index and outperformed the blended benchmark (60% Russell 1000 Index/40% Bloomberg US Treasury Bills 1-3 Month Index). The short positions didn’t perform as well as the index, giving a relative tailwind to the performance. The long positions in financials and communication services also contributed to relative strength. On the other hand, long holdings in health care and industrials were positive on an absolute basis but lagged behind benchmark peers, which hindered relative performance in Q1. In addition, you may look at the fund’s top 5 holdings to learn about its best picks in 2024.
Diamond Hill Capital Long-Short Fund highlighted stocks like International Business Machines Corporation (NYSE:IBM), in the first quarter 2024 investor letter. International Business Machines Corporation (NYSE:IBM) offers integrated solutions and services. The one-month return of International Business Machines Corporation (NYSE:IBM) was 6.09%, and its shares gained 31.17% of their value over the last 52 weeks. On June 28, 2024, International Business Machines Corporation (NYSE:IBM) stock closed at $172.95 per share with a market capitalization of $161.049 billion.
Diamond Hill Capital Long-Short Fund stated the following regarding International Business Machines Corporation (NYSE:IBM) in its first quarter 2024 investor letter:
“Among our bottom Q1 contributors short positions in Dick’s Sporting Goods, International Business Machines Corporation (NYSE:IBM) and Palomar Holdings. Though we believe the quality and durability of IBM’s free cash flow-generating capabilities remain questionable, investor sentiment has improved amid optimism for the company’s still-nascent AI product suite.”
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International Business Machines Corporation (NYSE:IBM) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 49 hedge fund portfolios held International Business Machines Corporation (NYSE:IBM) at the end of the first quarter which was 50 in the previous quarter. While we acknowledge the potential of International Business Machines Corporation (NYSE:IBM) 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.
We discussed International Business Machines Corporation (NYSE:IBM) in another article and shared the list of worst dividend aristocrat stocks. In addition, please check out our hedge fund investor letters Q1 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.
