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 Fortune Brands Innovations, Inc. (NYSE:FBIN) in the fourth quarter 2023 investor letter. Headquartered in Deerfield, Illinois, Fortune Brands Innovations, Inc. (NYSE:FBIN) is a home and security products provider. On March 7, 2024, Fortune Brands Innovations, Inc. (NYSE:FBIN) stock closed at $81.64 per share. One-month return of Fortune Brands Innovations, Inc. (NYSE:FBIN) was 1.90%, and its shares gained 37.70% of their value over the last 52 weeks. Fortune Brands Innovations, Inc. (NYSE:FBIN) has a market capitalization of $10.297 billion.
Diamond Hill Mid Cap Strategy stated the following regarding Fortune Brands Innovations, Inc. (NYSE:FBIN) in its fourth quarter 2023 investor letter:
“We initiated a position in Fortune Brands Innovations, Inc. (NYSE:FBIN), a leading manufacturer of decorative plumbing fixtures, exterior doors, composite decking and locks and safes. Shares have been pressured recently against a backdrop of declining existing home sales, which is generally considered the primary driver of repair and remodeling (R&R) spending. However, the long-term outlook for new construction and R&R spending is positive given historical underinvestment and favorable demographic trends. Further, history shows R&R spending can grow despite declining existing home sales as it did from 1978-1982. FBIN’s portfolio includes leading brands with attractive end markets and secular tailwinds, and we believe the outlook from here is positive.”
On-site technicians inspecting a water management system.
Fortune Brands Innovations, Inc. (NYSE:FBIN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. At the end of the fourth quarter, Fortune Brands Innovations, Inc. (NYSE:FBIN) was held by 30 hedge fund portfolios, up from 26 in the previous quarter, according to our database.
We discussed Fortune Brands Innovations, Inc. (NYSE:FBIN) in another article and shared Longleaf Partners Global Fund’s views on the company in the previous quarter. 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.
