Diamond Hill Capital, an investment management company, released its “Large Cap Concentrated Fund” fourth-quarter 2024 investor letter. A copy of the letter can be downloaded here. Q4 saw an uneven increase in markets, capping off yet another strong year for the markets. Stocks broadly increased after the US election, but some gave up most or all of those gains before the end of the year. Against this backdrop, the portfolio trailed the Russell 1000 Index in Q4 and for the full year. The fund returned -2.00% (net) in Q4 vs 2.75% for the index. For the full year, the fund returned 14.24% compared to 24.51% for the index. In addition, you can check the top 5 holdings of the strategy to know its best picks in 2024.
In its fourth quarter 2024 investor letter, Diamond Hill Large Cap Concentrated Fund emphasized stocks such as Extra Space Storage Inc. (NYSE:EXR). Extra Space Storage Inc. (NYSE:EXR) is a self-administered and self-managed REIT. The one-month return of Extra Space Storage Inc. (NYSE:EXR) was -6.41%, and its shares gained 5.01% of their value over the last 52 weeks. On March 14, 2025, Extra Space Storage Inc. (NYSE:EXR) stock closed at $144.99 per share with a market capitalization of $32.09 billion.
Diamond Hill Large Cap Concentrated Fund stated the following regarding Extra Space Storage Inc. (NYSE:EXR) in its Q4 2024 investor letter:
“Other bottom Q4 contributors included Extra Space Storage Inc. (NYSE:EXR), Texas Instruments and Union Pacific. Shares of self-storage real estate investment trust (REIT) Extra Space Storage were pressured in Q4 as 10-year Treasury rates rose, broadly impacting REITs. Further, high rates could slow a recovery in home sales, which contributed to negative sentiment in the quarter.”
An aerial view of a self-storage facility, its parking lot full with cars and RV’s.
Extra Space Storage Inc. (NYSE:EXR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 36 hedge fund portfolios held Extra Space Storage Inc. (NYSE:EXR) at the end of the fourth quarter compared to 28 in the third quarter. While we acknowledge the potential of Extra Space Storage Inc. (NYSE:EXR) 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 Extra Space Storage Inc. (NYSE:EXR) and shared the list of best self-storage and apartment stocks to invest in. In addition, please check out our hedge fund investor letters Q4 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.