Diamond Hill Capital, an investment management company, released its “Select Strategy” first-quarter 2024 investor letter. A copy of the letter can be downloaded here. The portfolio appreciated double digits in Q1 outperforming the Russell 3000 Index. The strategy returned 12.66% gross of fees and 12.43% net of fees vs 10.02% for the index. The relative performance of the portfolio concentrated on discretionary, financials, and consumer staples holdings however industrials and healthcare holdings, while positive on an absolute basis, trailed benchmark peers, posing a relative headwind in Q1. Relative performance was also negatively impacted by lack of exposure to the communication services sector. In addition, you can check the top 5 holdings of the fund to know its best picks in 2024.
Diamond Hill Select Strategy highlighted stocks like Mr. Cooper Group Inc. (NASDAQ:COOP), in the first quarter 2024 investor letter. Mr. Cooper Group Inc. (NASDAQ:COOP) is a residential loan service-providing company. The one-month return of Mr. Cooper Group Inc. (NASDAQ:COOP) was -1.07%, and its shares gained 64.48% of their value over the last 52 weeks. On June 10, 2024, Mr. Cooper Group Inc. (NASDAQ:COOP) stock closed at $81.09 per share with a market capitalization of $5.248 billion.
Diamond Hill Select Strategy stated the following regarding Mr. Cooper Group Inc. (NASDAQ:COOP) in its first quarter 2024 investor letter:
“Other top Q1 contributors included Mr. Cooper Group Inc. (NASDAQ:COOP), Allstate and American International Group (AIG). Shares of mortgage-servicing company Mr. Cooper Group held up well as investors lowered their expectations around when the Federal Reserve will begin cutting rates — particularly as a higher-for-longer environment should give a boost to Mr. Cooper’s mortgage servicing business.”
A direct-to-consumer channel customer checking their mortgage account online.
Mr. Cooper Group Inc. (NASDAQ:COOP) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 41 hedge fund portfolios held Mr. Cooper Group Inc. (NASDAQ:COOP) at the end of the first quarter which was 34 in the previous quarter. While we acknowledge the potential of Mr. Cooper Group Inc. (NASDAQ:COOP) 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 Mr. Cooper Group Inc. (NASDAQ:COOP) and shared the list of top stocks in Billionaire Leon Cooperman’s portfolio. Diamond Hill Select Strategy benefitted from Mr. Cooper Group Inc. (NASDAQ:COOP) in the previous quarter. 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.
