Diamond Hill Capital, an investment management company, released its “Small Cap Fund” third-quarter 2024 investor letter. A copy of the letter can be downloaded here. In Q3, markets contributed to strong year-to-date gains, though not without some volatility. As shown by the Russell 2000 Index, small-cap equities increased by 9%, while the broad market Russell 3000 Index increased by slightly more than 6%. Against this backdrop, the strategy trailed the index and returned 8.43% in the quarter compared to 9.27% for the Russell 2000 Index. For more information on the fund’s top picks in 2024, please check its top five holdings.
Diamond Hill Small Cap Fund highlighted stocks like Insperity, Inc. (NYSE:NSP) in the third quarter 2024 investor letter. Headquartered in Kingwood, Texas, Insperity, Inc. (NYSE:NSP) provides human resources (HR) and business solutions to improve performance. The one-month return of Insperity, Inc. (NYSE:NSP) was -4.83%, and its shares lost 21.99% of their value over the last 52 weeks. On October 30, 2024, Insperity, Inc. (NYSE:NSP) stock closed at $81.11 per share with a market capitalization of $3.161 billion.
Diamond Hill Small Cap Fund stated the following regarding Insperity, Inc. (NYSE:NSP) in its Q3 2024 investor letter:
“We continue finding compelling new ideas, even as the bull market proceeds. In Q3, we initiated new positions in Insperity, Inc. (NYSE:NSP), International General Insurance Holdings, Perma-Fix Environmental Services and Proficient Auto Logistics.
Insperity provides human resources (HR) and business solutions primarily to US-based small and mid-sized businesses. Recent labor-market softness and its previously announced partnership with cloud-based provider of finance and HR-related applications Workday have weighed on near-term fundamentals. However, these concerns aside, Insperity has enviable scale in the outsourced HR business that has benefited from several secular trends, including greater adoption of the outsourced HR service model, increased regulation and growing HR complexity. We believe these secular trends likely remain intact for the foreseeable future. The company has historically allocated capital and generated cash well. We believe there is a compelling opportunity for margin improvement over time and capitalized on the near-term price weakness to initiate a position.”
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Insperity, Inc. (NYSE:NSP) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 26 hedge fund portfolios held Insperity, Inc. (NYSE:NSP) at the end of the second quarter which was 20 in the previous quarter. While we acknowledge the potential of Insperity, Inc. (NYSE:NSP) 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 Insperity, Inc. (NYSE:NSP) and shared Carillon Scout Small Cap Fund’s views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q3 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.