Diamond Hill Capital, an investment management company, released its “Mid Cap Strategy” fourth-quarter 2023 investor letter. A copy of the same can be downloaded here. During Q4, the markets experienced a sharp rebound, resulting in positive returns in most regions and countries. The portfolio had a better performance than the Russell Midcap Index during the Q4 period, but it underperformed for the entire calendar year. The strategy experienced relative strength in Q4, which was mainly due to the real estate holdings and exposure. These benefited from the declining interest rates environment. Holdings in industrials, financials, and consumer discretionary also added to the performance, as well as the below-benchmark exposure to energy. However, the below-benchmark exposure to technology and above-benchmark exposure to consumer staples detracted from the relative performance. The strategy delivered returns of 13.68% (net of fees) in Q4 and 9.88% (net of fees) for the full year. This compares to the Russell Midcap Index returns of 12.82% and 17.23% for Q4 and the full year, respectively. In addition, you can check the top 5 holdings of the strategy to know its best picks in 2023.
Diamond Hill Mid Cap Strategy featured stocks like Envista Holdings Corporation (NYSE:NVST) in the fourth quarter 2023 investor letter. Headquartered in Brea, California, Envista Holdings Corporation (NYSE:NVST) engages in the business of dental products. On March 7, 2024, Envista Holdings Corporation (NYSE:NVST) stock closed at $21.13 per share. One-month return of Envista Holdings Corporation (NYSE:NVST) was -5.84%, and its shares lost 44.29% of their value over the last 52 weeks. Envista Holdings Corporation (NYSE:NVST) has a market capitalization of $3.625 billion.
Diamond Hill Mid Cap Strategy stated the following regarding Envista Holdings Corporation (NYSE:NVST) in its fourth quarter 2023 investor letter:
“Despite a rising market environment, we were able to initiate several new positions in Q4, including GoDaddy, Envista Holdings Corporation (NYSE:NVST), Insperity and Fortune Brands Innovations. Envista is a leading provider of dental consumables and equipment which, over the past few years, has worked to reshape its portfolio to focus on higher-growth, higher-margin products while also seeking to drive efficiencies in its business systems. Given its reasonable leverage ratio following efforts to pay down debt, the company should be well-positioned for future acquisitions. When combined with its significant discount to medical devices and dental peers, we believe Envista offers an attractive opportunity to own a high-quality company with the potential to grow steadily and expand margins in the period ahead.”
A close-up of a dental bracket and wires being fitted into a patient’s mouth.
Envista Holdings Corporation (NYSE:NVST) is not on our list of 30 Most Popular Stocks Among Hedge Funds. At the end of the fourth quarter, Envista Holdings Corporation (NYSE:NVST) was held by 33 hedge fund portfolios, up from 31 in the previous quarter, according to our database.
We discussed Envista Holdings Corporation (NYSE:NVST) in another article and shared Artisan Small Cap Fund’s views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q4 2023 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.
