Diamond Hill Capital, an investment management company, released its “Long-Short Fund” second-quarter 2024 investor letter. A copy of the letter can be downloaded here. The portfolio achieved positive returns in Q2 but trailed the Russell 1000 Index and the blended benchmark (60% Russell 1000 Index/40% Bloomberg US Treasury Bills 1-3 Month Index). The short positions didn’t perform as well as the index, giving a relative tailwind to the performance. The long positions in industrials, materials, and real estate holdings contributed to relative strength. In addition, you may look at the fund’s top 5 holdings to learn about its best picks in 2024.
Diamond Hill Long-Short Fund highlighted stocks like Alarm.com Holdings, Inc. (NASDAQ:ALRM), in the second quarter 2024 investor letter. Alarm.com Holdings, Inc. (NASDAQ:ALRM) is a company that offers various Internet of Things (IoT) and solutions. The one-month return of Alarm.com Holdings, Inc. (NASDAQ:ALRM) was -5.69%, and its shares lost 9.18% of their value over the last 52 weeks. On September 24, 2024, Alarm.com Holdings, Inc. (NASDAQ:ALRM) stock closed at $55.20 per share with a market capitalization of $2.719 billion.
Diamond Hill Long-Short Fund stated the following regarding Alarm.com Holdings, Inc. (NASDAQ:ALRM) in its Q2 2024 investor letter:
“Other top contributors included our short positions in WD-40 and Alarm.com Holdings, Inc. (NASDAQ:ALRM). Alarm.com sells software-as-a-service (SaaS)-based operating systems to third parties that integrate them into their home security hardware systems. We believe the competitive environment is getting more difficult for the company: ADT is one of Alarm.com’s large customers and has recently launched its own software platform, which ADT is adding to new users instead of Alarm.com’s products. Further, ADT is prioritizing its partnership with Google Nest, which should challenge Alarm.com’s future revenue growth. In the wake of these growing competitive forces, shares have been pressured.”
A view of a control room with video screens monitoring multiple sites through intelligent automation.
Alarm.com Holdings, Inc. (NASDAQ:ALRM) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 31 hedge fund portfolios held Alarm.com Holdings, Inc. (NASDAQ:ALRM) at the end of the second quarter which was 29 in the previous quarter. While we acknowledge the potential of Alarm.com Holdings, Inc. (NASDAQ:ALRM) 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 Alarm.com Holdings, Inc. (NASDAQ:ALRM) and shared the list of smart home companies revolutionizing the US. Diamond Hill Long-Short Fund initiated the short position in Alarm.com Holdings, Inc. (NASDAQ:ALRM) during Q3 2023. 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.