Diamond Hill Capital, an investment management company, released its “Select Strategy” second-quarter 2024 investor letter. A copy of the letter can be downloaded here. In Q2, markets saw a modest boost, delivering positive returns across the majority of regions and nations. The Russell 3000 Index showed a +3% increase in US stocks; however, the majority of the gains came from large-cap stocks, which increased by about +4%. Returns were negative across the cap spectrum, with mid-caps and small caps, as indicated by their respective Russell indices, each down about -3%. The portfolio underperformed the Russell 3000 Index in Q2 and returned -4.96% net of fees compared to 3.22% for the index. In addition, you can check the fund’s top 5 holdings to find out its best picks for 2024.
Diamond Hill Select Strategy highlighted stocks like Enovis Corporation (NYSE:ENOV), in the second quarter 2024 investor letter. Enovis Corporation (NYSE:ENOV) is a medical technology company. The one-month return of Enovis Corporation (NYSE:ENOV) was 7.20%, and its shares lost 24.79% of their value over the last 52 weeks. On July 30, 2024, Enovis Corporation (NYSE:ENOV) stock closed at $47.93 per share with a market capitalization of $2.63 billion.
Diamond Hill Select Strategy stated the following regarding Enovis Corporation (NYSE:ENOV) in its Q2 2024 investor letter:
“Other bottom contributors in Q2 included CarMax, Target Corporation and Enovis Corporation (NYSE:ENOV). Shares of innovative medical technology company Enovis were pressured amid some short-term headwinds related to the integration of a recent acquisition. While some were quick to conclude the boost Enovis and the medical technology industry overall received from a COVID-era backlog of surgeries is winding down, we believe Enovis remains well-positioned to continue taking share as it cross-sells new products. Further, we believe the market is undervaluing the company’s ability to use its continuous improvement-focused business system to drive above[1]market organic growth, make accretive acquisitions and meaningfully expand margins over the long term.”
A patient recieving cold therapy treatment using the company’s products.
Enovis Corporation (NYSE:ENOV) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 29 hedge fund portfolios held Enovis Corporation (NYSE:ENOV) at the end of the first quarter which was 30 in the previous quarter. Enovis Corporation (NYSE:ENOV) reported sales of $516 million in the first quarter, representing a 27% year-over-year increase and 5% on a pro forma basis. While we acknowledge the potential of Enovis Corporation (NYSE:ENOV) 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 Enovis Corporation (NYSE:ENOV) and shared Alphyn Capital Management’s views on the company. 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.
