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 Meta Platforms, Inc. (NASDAQ:META), in the first quarter 2024 investor letter. Meta Platforms, Inc. (NASDAQ:META) is a technology company that develops products to connect people. The one-month return of Meta Platforms, Inc. (NASDAQ:META) was 5.81%, and its shares gained 76.45% of their value over the last 52 weeks. On July 1, 2024, Meta Platforms, Inc. (NASDAQ:META) stock closed at $504.68 per share with a market capitalization of $1.28 trillion.
Diamond Hill Capital Long-Short Fund stated the following regarding Meta Platforms, Inc. (NASDAQ:META) in its first quarter 2024 investor letter:
“Other top Q1 contributors included Meta Platforms, Inc. (NASDAQ:META), Citigroup and Walt Disney. Shares of social media platform Meta rose in Q1 as advertising revenues rebounded and cost-cutting measures contributed to higher profits and revenues. The company’s user base on its apps — including Facebook, Instagram, Messenger and WhatsApp — also grew during the quarter.”
A team of developers working in unison to create the company’s messaging application.
Meta Platforms, Inc. (NASDAQ:META) is in third position on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 246 hedge fund portfolios held Meta Platforms, Inc. (NASDAQ:META) at the end of the first quarter which was 242 in the previous quarter. Meta Platforms, Inc.’s (NASDAQ:META) trailing 12 months revenue was $142.71 billion and year over year quarterly revenue growth rate is 27.30%. While we acknowledge the potential of Meta Platforms, Inc. (NASDAQ:META) 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 Meta Platforms, Inc. (NASDAQ:META) in another article and shared the list of best AI momentum stocks to benefit from volatility ahead. 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.
