Diamond Hill Capital, an investment management company, released its “Mid Cap Strategy” fourth-quarter 2023 investor letter. A copy of the same can be downloaded here. During Q4, the markets experienced a sharp rebound, resulting in positive returns in most regions and countries. The portfolio had a better performance than the Russell Midcap Index during the Q4 period, but it underperformed for the entire calendar year. The strategy experienced relative strength in Q4, which was mainly due to the real estate holdings and exposure. These benefited from the declining interest rates environment. Holdings in industrials, financials, and consumer discretionary also added to the performance, as well as the below-benchmark exposure to energy. However, the below-benchmark exposure to technology and above-benchmark exposure to consumer staples detracted from the relative performance. The strategy delivered returns of 13.68% (net of fees) in Q4 and 9.88% (net of fees) for the full year. This compares to the Russell Midcap Index returns of 12.82% and 17.23% for Q4 and the full year, respectively. In addition, you can check the top 5 holdings of the strategy to know its best picks in 2023.
Diamond Hill Mid Cap Strategy featured stocks like Insperity, Inc. (NYSE:NSP) in the fourth quarter 2023 investor letter. Headquartered in Kingwood, Texas, Insperity, Inc. (NYSE:NSP) provides human resources (HR) and business solutions to improve business performance. On March 7, 2024, Insperity, Inc. (NYSE:NSP) stock closed at $100.39 per share. One-month return of Insperity, Inc. (NYSE:NSP) was 4.17%, and its shares lost 15.33% of their value over the last 52 weeks. Insperity, Inc. (NYSE:NSP) has a market capitalization of $3.743 billion.
Diamond Hill Mid Cap Strategy stated the following regarding Insperity, Inc. (NYSE:NSP) in its fourth quarter 2023 investor letter:
“Despite a rising market environment, we were able to initiate several new positions in Q4, including GoDaddy, Envista Holdings, Insperity, Inc. (NYSE:NSP) and Fortune Brands Innovations. Insperity is the US’s fifth-largest professional employer organization (PEO), providing a comprehensive outsourced HR package (including payroll processing, general administrative support and advice, compliance management, etc.) to mostly small and medium business clients. PEOs also use their scale to offer accessible and affordable insurance. These offerings offer a value proposition to smaller companies as they unburden business leaders of several non-core functions. Further, Insperity is a scale operator in an industry that has been growing solidly amid several secular trends, including increased adoption of the PEO service model, increased regulation and growing HR complexity. Shares have underperformed over the last few years due largely to operational investments and pandemic-related challenges — both of which we anticipate to be transitory. Given our positive outlook on the company’s long-term prospects, we capitalized on an attractive valuation to initiate a position in Q4.”
Insperity, Inc. (NYSE:NSP) is not on our list of 30 Most Popular Stocks Among Hedge Funds. At the end of the fourth quarter, Insperity, Inc. (NYSE:NSP) was held by 23 hedge fund portfolios, up from 22 in the previous quarter, according to our database.
We discussed Insperity, Inc. (NYSE:NSP) in another article and shared the list of long-term returns of Jeff Smith’s activist targets. In addition, please check out our hedge fund investor letters Q4 2023 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.
