Diamond Hill Capital, an investment management company, released its “Mid Cap Strategy” second-quarter 2024 investor letter. A copy of the letter can be downloaded here. In Q2, markets saw a modest increase, providing favorable results in most regions and nations. In the quarter the strategy lagged the Russell Midcap Index. The relative weakness was mostly concentrated in the industrial holdings, which underperformed their index counterparts. Another area of relative weakness came from holdings in utilities and consumer discretionary. On the other hand, holdings in health care and materials were comparatively strong. The strategy returned -4.39% (gross) and -4.56% (net) in the quarter vs -3.35% for the index. In addition, you can check the top 5 holdings of the strategy to know its best picks in 2024.
Diamond Hill Mid Cap Strategy highlighted stocks like GoDaddy Inc. (NYSE:GDDY) in the second quarter 2024 investor letter. GoDaddy Inc. (NYSE:GDDY) designs and develops cloud-based products. The one-month return of GoDaddy Inc. (NYSE:GDDY) was 14.17%, and its shares gained 130.28% of their value over the last 52 weeks. On August 26, 2024, GoDaddy Inc. (NYSE:GDDY) stock closed at $164.17 per share with a market capitalization of $23.144 billion.
Diamond Hill Mid Cap Strategy stated the following regarding GoDaddy Inc. (NYSE:GDDY) in its Q2 2024 investor letter:
“On an individual holdings’ basis, top contributors to return in Q2 included Mid-America Apartment Communities, UDR and GoDaddy Inc. (NYSE:GDDY). GoDaddy Inc. (NYSE:GDDY) designs and develops cloud-based web platforms primarily for small businesses. Shares rose in the quarter on the back of strong applications and commerce segment bookings, which contributed to a notable acceleration in revenue growth. Though management has been conservative in its guidance, we believe the market is increasingly recognizing the magnitude of the opportunity in front of the company, giving a boost to shares.”
A close-up of a complex web page being developed and refined by a web development specialist.
GoDaddy Inc. (NYSE:GDDY) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 48 hedge fund portfolios held GoDaddy Inc. (NYSE:GDDY) at the end of the second quarter which was 48 in the previous quarter. In the second quarter, GoDaddy Inc.’s (NYSE:GDDY) total revenue increased to $1.1 billion, representing a 7% growth on both reported and constant currency basis, surpassing the upper limit of the guided range for the quarter. While we acknowledge the potential of GoDaddy Inc. (NYSE:GDDY) 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 GoDaddy Inc. (NYSE:GDDY) and shared the list of companies that are facing activist pressure. In Q4 2023, Diamond Hill Mid Cap Strategy initiated a position in GoDaddy Inc. (NYSE:GDDY). 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.
