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 Diamondback Energy, Inc. (NASDAQ:FANG), in the first quarter 2024 investor letter. Diamondback Energy, Inc. (NASDAQ:FANG) is an independent oil and natural gas company. The one-month return of Diamondback Energy, Inc. (NASDAQ:FANG) was -5.51%, and its shares gained 44.42% of their value over the last 52 weeks. On June 6, 2024, Diamondback Energy, Inc. (NASDAQ:FANG) stock closed at $191.04 per share with a market capitalization of $34.071 billion.
Diamond Hill Capital Mid Cap Strategy stated the following regarding Diamondback Energy, Inc. (NASDAQ:FANG) in its first quarter 2024 investor letter:
“Though valuations have increased, we continue identifying high-quality companies we believe the market is overlooking. We accordingly initiated four new positions in Q1: Generac Holdings, Diamondback Energy, Inc. (NASDAQ:FANG), Johnson Controls International and Humana. FANG is a scaled, low-cost energy exploration and production company in one of the US’s most prolific shale basins. The company focuses on cost efficiency and prudent, sustainable management of its assets, and we believe the company is well-positioned for free cash-flow generation over the long term. Further, we have confidence in the management team, which we believe is well-aligned with shareholders. We initiated a position in FANG at a compelling price relative to our estimate of intrinsic value in February, just ahead of the company’s announced and attractive acquisition of Endeavor.”
A drilling rig in an oil field, the sun setting over the horizon.
Diamondback Energy, Inc. (NASDAQ:FANG) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 44 hedge fund portfolios held Diamondback Energy, Inc. (NASDAQ:FANG) at the end of the first quarter which was 42 in the previous quarter. While we acknowledge the potential of Diamondback Energy, Inc. (NASDAQ:FANG) 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 Diamondback Energy, Inc. (NASDAQ:FANG) and shared the list of top oil Producing Companies in the US. Diamond Hill’s Select Strategy commented about Diamondback Energy, Inc. (NASDAQ:FANG) in the previous quarter investor letter. 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.
