Here’s Why Diamond Hill Capital Sold its SPX Flow (SPXC) Position

Diamond Hill Capital, an investment management firm, published its “Diamond Hill Small Cap Fund” first-quarter 2022 investor letter – a copy of which can be downloaded here. Diamond Hill invests on behalf of clients through a shared commitment to its valuation-driven investment principles, long-term perspective, capacity discipline, and client alignment. Amid a rocky market environment, the portfolio’s negative returns still outpaced the Russell 2000 Index by a healthy margin in Q1.  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 Small Cap Fund mentioned SPX Corporation (NYSE:SPXC) and explained its insights into the company. Founded in 1911, SPX Corporation (NYSE:SPXC) is a Charlotte, North Carolina-based highly engineered infrastructure equipment and technology supplier with a $2.4 billion market capitalization. SPX Corporation (NYSE:SPXC) delivered a -11.78% return since the beginning of the year, while its 12-month returns are down by -16.94%. The stock closed at $52.65 per share on July 12, 2022.

Here is what Diamond Hill Small Cap Fund has to say about SPX Corporation (NYSE:SPXC) in its Q1 2022 investor letter:

“Amid a rocky market environment, our portfolio’s negative returns still outpaced the Russell 2000 Index by a healthy margin in Q1. Relative performance was aided by strength among our consumer staples holdings — in aggregate, their positive returns outpaced the market. We were further aided by our above-benchmark exposure. We sold pumping equipment manufacturer SPX Flow (NYSE:SPXC) in advance of its acquisition by Lone Star as shares were trading above the takeout price.

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Our calculations show that SPX Corporation (NYSE:SPXC) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. SPX Corporation (NYSE:SPXC) was in 14 hedge fund portfolios at the end of the first quarter of 2022, compared to 14 funds in the previous quarter. SPX Corporation (NYSE:SPXC) delivered a 16.15% return in the past 3 months.

In (date of publication), we also shared another hedge fund’s views on SPX Corporation (NYSE:SPXC) in another article. 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.