Diamond Hill Capital, an investment management company, released its “Mid Cap Strategy” first-quarter 2024 investor letter. A copy of the letter can be downloaded here. In the quarter the strategy outperformed the Russell Midcap Index. The strategy returned 9.74% (gross) and 9.55% net of fees vs 8.60% for the index. As the economy and profit growth remained strong, equity markets continued their upward trend in Q1. In addition, you can check the top 5 holdings of the strategy to know its best picks in 2024.
Diamond Hill Capital Mid Cap Strategy highlighted stocks like Archer-Daniels-Midland Company (NYSE:ADM), in the first quarter 2024 investor letter. Archer-Daniels-Midland Company (NYSE:ADM) procures, transports, stores, and merchandises agricultural commodities, ingredients, flavors, and solutions. The one-month return of Archer-Daniels-Midland Company (NYSE:ADM) was -2.87%, and its shares lost 15.67% of their value over the last 52 weeks. On June 6, 2024, Archer-Daniels-Midland Company (NYSE:ADM) stock closed at $61.17 per share with a market capitalization of $30.245 billion.
Diamond Hill Capital Mid Cap Strategy stated the following regarding Archer-Daniels-Midland Company (NYSE:ADM) in its first quarter 2024 investor letter:
“Other bottom contributors in Q1 included Archer-Daniels-Midland Company (NYSE:ADM). Shares of agricultural commodities and products company ADM sold off materially following the announcement its CFO had been put on administrative leave due to inter-segment financial reporting issues (particularly related to the nutrition segment) and the SEC had an open investigation into the matter. ADM has since published its fiscal year 2023 10-K, which included restatements of inter-segment operating profits from 2018-2023. Since this was an inter-segment issue, the consolidated financials did not need to be restated. While we are watching further developments, we remain comfortable with the business valuation at the current level.”
A wheat field at sunset, showing the company’s commitment to agricultural commodities.
Archer-Daniels-Midland Company (NYSE:ADM) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 40 hedge fund portfolios held Archer-Daniels-Midland Company (NYSE:ADM) at the end of the first quarter which was 34 in the previous quarter. While we acknowledge the potential of Archer-Daniels-Midland Company (NYSE:ADM) 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 addition, please check out our hedge fund investor letters Q1 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.
