Diamond Hill Capital, an investment management company, released its “Large Cap Concentrated Fund” fourth-quarter 2024 investor letter. A copy of the letter can be downloaded here. Q4 saw an uneven increase in markets, capping off yet another strong year for the markets. Stocks broadly increased after the US election, but some gave up most or all of those gains before the end of the year. Against this backdrop, the portfolio trailed the Russell 1000 Index in Q4 and for the full year. The fund returned -2.00% (net) in Q4 vs 2.75% for the index. For the full year, the fund returned 14.24% compared to 24.51% for the index. In addition, you can check the top 5 holdings of the strategy to know its best picks in 2024.
In its fourth quarter 2024 investor letter, Diamond Hill Large Cap Concentrated Fund emphasized stocks such as Freeport-McMoRan Inc. (NYSE:FCX). Headquartered in Phoenix, Arizona, Freeport-McMoRan Inc. (NYSE:FCX) is a mining company that explores copper, gold, molybdenum, silver, and other metals. One-month return of Freeport-McMoRan Inc. (NYSE:FCX) was -1.57% and its shares lost 12.66% of their value over the last 52 weeks. On March 14, 2025, Freeport-McMoRan Inc. (NYSE:FCX) stock closed at $38.85 per share with a market capitalization of $55.83 billion.
Diamond Hill Large Cap Concentrated Fund stated the following regarding Freeport-McMoRan Inc. (NYSE:FCX) in its Q4 2024 investor letter:
“Among our bottom individual contributors in Q4 were HCA Healthcare and Freeport-McMoRan Inc. (NYSE:FCX). Copper-focused mining company Freeport-McMoRan faced declining copper prices amid a generally challenging macroeconomic environment, including a strong US dollar, ongoing US-China trade tensions, the potential for increased tariffs under President-elect Trump’s administration and general post-election uncertainty.”
A large open-pit copper mine with heavy machinery extracting minerals from the earth.
Freeport-McMoRan Inc. (NYSE:FCX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 88 hedge fund portfolios held Freeport-McMoRan Inc. (NYSE:FCX) at the end of the fourth quarter compared to 74 in the third quarter. While we acknowledge the potential of Freeport-McMoRan Inc. (NYSE:FCX) 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 Freeport-McMoRan Inc. (NYSE:FCX) and shared the list of best metal stocks to buy according to analysts. In addition, please check out our hedge fund investor letters Q4 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.