Here’s What Makes ADM a Great Investment Pick

Diamond Hill Capital, an investment management firm, published its “Diamond Hill Long-Short Fund” first-quarter 2022 investor letter – a copy of which can be downloaded here. The Diamond Hill Long-Short Fund’s returns were just about flat—slightly positive— in Q1. After a strong rebound in 2021, the fund expects the global GDP growth to moderate in 2022. Try to take some time looking at the fund’s top 5 holdings to be informed about their best picks for 2022.

In its Q1 2022 investor letter, Diamond Hill Long-Short Fund mentioned Archer-Daniels-Midland Company (NYSE:ADM) and explained its insights for the company. Founded in 1902, Archer-Daniels-Midland Company (NYSE:ADM) is a Chicago, Illinois-based food processing company with a $40.3 billion market capitalization. Archer-Daniels-Midland Company (NYSE:ADM) delivered a 6.08% return since the beginning of the year, while its 12-month returns are up by 23.17%. The stock closed at $71.70 per share on July 14, 2022.

Here is what Diamond Hill Long-Short Fund has to say about Archer-Daniels-Midland Company (NYSE:ADM) in its Q1 2022 investor letter:

ADM is a leading agricultural processor that also operates a global nutrition business focused on the development of ingredients and flavors for food and beverages, supplements and more. The company’s recent operating results have benefited (unfortunately) from the war in Ukraine as grain prices and agricultural markets globally experienced strong price increases. ADM is positioned well to benefit from the volatility due to its stable North American agricultural base.”

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Our calculations show that Archer-Daniels-Midland Company (NYSE:ADM) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Archer-Daniels-Midland Company (NYSE:ADM) was in 42 hedge fund portfolios at the end of the first quarter of 2022, compared to 41 funds in the previous quarter. Archer-Daniels-Midland Company (NYSE:ADM) delivered a -26.01% return in the past 3 months.

In July 2022, we also shared another hedge fund’s views on Archer-Daniels-Midland Company (NYSE:ADM) in 10 Best Stocks to Buy Amid Inflation in 2022 and Beyond. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q1 page.

Disclosure: None. This article is originally published at Insider Monkey.