Diamond Hill Capital, an investment management company, released its “Long-Short Fund” first-quarter 2024 investor letter. A copy of the letter can be downloaded here. The portfolio achieved positive returns in Q4 but trailed the Russell 1000 Index and outperformed 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 financials and communication services also contributed to relative strength. On the other hand, long holdings in health care and industrials were positive on an absolute basis but lagged behind benchmark peers, which hindered relative performance in Q1. In addition, you may look at the fund’s top 5 holdings to learn about its best picks in 2024.
Diamond Hill Capital Long-Short Fund highlighted stocks like Palomar Holdings, Inc. (NASDAQ:PLMR), in the first quarter 2024 investor letter. Palomar Holdings, Inc. (NASDAQ:PLMR), with a market capitalization of $2.074 billion, is a specialty insurance company. One-month return of Palomar Holdings, Inc. (NASDAQ:PLMR) was -2.31%, and its shares gained 42.61% of their value over the last 52 weeks. On July 1, 2024, Palomar Holdings, Inc. (NASDAQ:PLMR) stock closed at $83.20 per share.
Diamond Hill Capital Long-Short Fund stated the following regarding Palomar Holdings, Inc. (NASDAQ:PLMR) in its first quarter 2024 investor letter:
“Among our bottom Q1 contributors were our short positions in Dick’s Sporting Goods, International Business Machines (IBM) and Palomar Holdings, Inc. (NASDAQ:PLMR). Residential and business property and casualty insurance company Palomar has benefited from solid fundamentals, even amid a difficult reinsurance environment in 2023. However, we believe shares remain overvalued and are maintaining our short position.”
A real estate investment banker sitting in a plush office, reviewing financials and papers.
Palomar Holdings, Inc. (NASDAQ:PLMR) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 16 hedge fund portfolios held Palomar Holdings, Inc. (NASDAQ:PLMR) at the end of the first quarter which was 19 in the previous quarter. The adjusted net income of Palomar Holdings, Inc. (NASDAQ:PLMR) for the first quarter was $27.8 million or $1.09 per share compared to adjusted net income of $20.4 million or $0.80 per share for the first quarter 2023. While we acknowledge the potential of Palomar Holdings, Inc. (NASDAQ:PLMR) 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.
We discussed Palomar Holdings, Inc. (NASDAQ:PLMR) in another article and shared Conestoga Capital Advisors’ views on the company. 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.
