Diamond Hill Capital, an investment management company, released its “Small Cap Fund” third-quarter 2024 investor letter. A copy of the letter can be downloaded here. In Q3, markets contributed to strong year-to-date gains, though not without some volatility. As shown by the Russell 2000 Index, small-cap equities increased by 9%, while the broad market Russell 3000 Index increased by slightly more than 6%. Against this backdrop, the strategy trailed the index and returned 8.43% in the quarter compared to 9.27% for the Russell 2000 Index. For more information on the fund’s top picks in 2024, please check its top five holdings.
Diamond Hill Small Cap Fund highlighted stocks like Enovis Corporation (NYSE:ENOV), in the third quarter 2024 investor letter. Enovis Corporation (NYSE:ENOV) is a medical technology company. The one-month return of Enovis Corporation (NYSE:ENOV) was 4.28%, and its shares lost 9.55% of their value over the last 52 weeks. On October 30, 2024, Enovis Corporation (NYSE:ENOV) stock closed at $42.06 per share with a market capitalization of $2.329 billion.
Diamond Hill Small Cap Fund stated the following regarding Enovis Corporation (NYSE:ENOV) in its Q3 2024 investor letter:
“Other bottom Q3 contributors included Allient, Rimini Street and Enovis Corporation (NYSE:ENOV). Shares of innovative medical technology company Enovis underperformed amid investors’ disappointment with its US surgical business growth, which slowed dramatically as the company focuses on integrating recent acquisition Lima. However, given the product overlap and different sales channels, we aren’t surprised at these disruptions and believe the acquisition will prove beneficial in the long run.”
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, 30 hedge fund portfolios held Enovis Corporation (NYSE:ENOV) at the end of the second quarter which was 29 in the previous quarter. Enovis Corporation (NYSE:ENOV) reported sales of $525 million in the second quarter, representing a 23% 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 best industrial stocks to buy according to analysts. Enovis Corporation (NYSE:ENOV) was in the bottom contributors list of Diamond Hill Select Strategy in the previous quarter. In addition, please check out our hedge fund investor letters Q3 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.