Diamond Hill Capital, an investment management company, released its “Large Cap Strategy” fourth-quarter 2023 investor letter. A copy of the same can be downloaded here. The strategy trailed the Russell 1000 Index for Q4 and underperformed for the calendar year. In Q4, both the fund’s below-benchmark weighting and individual holdings underperformed index peers, resulting in relative weakness in the technology exposure for both the full year and the quarter. In addition, overweight exposure to the weak energy sector detracted from the relative results, along with healthcare holdings. Financial holdings and over-benchmark allocation boosted performance. Positive stock picks in real estate and consumer staples sectors also contributed. The strategy returned 11.39% (net) in Q4 compared to 11.96% for the Russell 1000 Index. For the full year, the strategy returned 13.68% (net) compared to a 26.53% return for the index. In addition, you can check the top 5 holdings of the strategy to know its best picks in 2023.
Diamond Hill Large Cap Strategy featured stocks like BorgWarner Inc. (NYSE:BWA) in its Q4 2023 investor letter. Headquartered in Auburn Hills, Michigan, BorgWarner Inc. (NYSE:BWA) offers solutions for combustion, hybrid, and electric vehicles. On February 28, 2024, BorgWarner Inc. (NYSE:BWA) stock closed at $30.78 per share. One-month return of BorgWarner Inc. (NYSE:BWA) was -11.05%, and its shares lost 31.24% of their value over the last 52 weeks. BorgWarner Inc. (NYSE:BWA) has a market capitalization of $7.073 billion.
Diamond Hill Large Cap Strategy stated the following regarding BorgWarner Inc. (NYSE:BWA) in its fourth quarter 2023 investor letter:
“Among our bottom contributors in Q4 were BorgWarner Inc. (NYSE:BWA) and Pfizer. BorgWarner is a high-quality global automotive supplier focused on fuel-efficient technologies. Shares were pressured in the quarter alongside a slowdown in electric vehicle production growth, which has been an area of focus for BorgWarner. However, we believe the company’s long-term outlook is intact given its strong balance sheet, smart capital allocation decisions and positioning relative to the trend toward increased content per vehicle as fuel efficiency standards tighten and more hybrid and electric technologies are adopted.”
Workers assembling a state-of-the-art engine in a modern auto factory.
BorgWarner Inc. (NYSE:BWA) is not on our list of 30 Most Popular Stocks Among Hedge Funds. At the end of the fourth quarter, BorgWarner Inc. (NYSE:BWA) was held by 25 hedge fund portfolios, compared to 25 in the previous quarter, according to our database.
We discussed BorgWarner Inc. (NYSE:BWA) in another article and shared the list of value stocks to buy for 2024 (picked by Joel Greenblatt). 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.
