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 The Walt Disney Company (NYSE:DIS), in the first quarter 2024 investor letter. The Walt Disney Company (NYSE:DIS) is an entertainment company that operates through Entertainment, Sports, and Experiences segments. The one-month return of The Walt Disney Company (NYSE:DIS) was -5.12%, and its shares gained 8.33% of their value over the last 52 weeks. On July 1, 2024, The Walt Disney Company (NYSE:DIS) stock closed at $98.04 per share with a market capitalization of $178.731 billion.
Diamond Hill Capital Long-Short Fund stated the following regarding The Walt Disney Company (NYSE:DIS) in its first quarter 2024 investor letter:
“Other top Q1 contributors included Meta Platforms, Citigroup and The Walt Disney Company (NYSE:DIS). Media and entertainment company Walt Disney faced — and defeated — an activist campaign and proxy battle during the quarter, giving a boost to shares. Profitability has also improved — with the company announcing it expects to reach double-digits profitability in its streaming business — and it announced forthcoming capital returns to shareholders.”
A packed theater of moviegoers watching a blockbuster film produced by the entertainment company.
The Walt Disney Company (NYSE:DIS) is in 31st position on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 92 hedge fund portfolios held The Walt Disney Company (NYSE:DIS) at the end of the first quarter which was 89 in the previous quarter. The Walt Disney Company (NYSE:DIS) either met or surpassed most of its financial targets in the quarter, primarily due to savings in expenses. While we acknowledge the potential of The Walt Disney Company (NYSE:DIS) 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 The Walt Disney Company (NYSE:DIS) in another article and shared the list of leisure and recreation services stocks to buy. The Walt Disney Company (NYSE:DIS) was a top contributor to RiverPark Large Growth Fund in the first quarter of 2024. 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.
