Diamond Hill Capital, an investment management company, released its “Long-Short Fund” second-quarter 2024 investor letter. A copy of the letter can be downloaded here. The portfolio achieved positive returns in Q2 but trailed the Russell 1000 Index and 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 industrials, materials, and real estate holdings contributed to relative strength. In addition, you may look at the fund’s top 5 holdings to learn about its best picks in 2024.
Diamond Hill Long-Short Fund highlighted stocks like Deckers Outdoor Corporation (NYSE:DECK) in the second quarter 2024 investor letter. Deckers Outdoor Corporation (NYSE:DECK) designs manufactures, and markets footwear, apparel, and accessories. Deckers Outdoor Corporation’s (NYSE:DECK) one-month return was -2.44%, and its shares gained 84.70% of their value over the last 52 weeks. On September 24, 2024, Deckers Outdoor Corporation (NYSE:DECK) stock closed at $154.40 per share with a market capitalization of $23.54 billion.
Diamond Hill Long-Short Fund stated the following regarding Deckers Outdoor Corporation (NYSE:DECK) in its Q2 2024 investor letter:
“We also initiated two new short positions in the quarter: Deckers Outdoor Corporation (NYSE:DECK) and Doximity. We initiated a short position in footwear and apparel manufacturer Deckers as we believe growing competition in running footwear will weigh on growth in the company’s HOKA brand. Additionally, we believe the company’s UGG brand is subject to unpredictable fashion trends, which we believe are unlikely to persist.”
A customer browsing a retail store, finding the perfect footwear for their casual outfits.
Deckers Outdoor Corporation (NYSE:DECK) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 52 hedge fund portfolios held Deckers Outdoor Corporation (NYSE:DECK) at the end of the second quarter which was 42 in the previous quarter. In the first quarter of fiscal year 2025, Deckers Outdoor Corporation (NYSE:DECK) generated $825 million in revenues, up 22% from the previous year. While we acknowledge the potential of Deckers Outdoor Corporation (NYSE:DECK) 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 Deckers Outdoor Corporation (NYSE:DECK) and shared the list of stocks that may be splitting soon. FPA Queens Road Small Cap Value Fund trimmed its position in Deckers Outdoor Corporation (NYSE:DECK) during Q2 2024. In addition, please check out our hedge fund investor letters Q2 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.