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 Union Pacific Corporation (NYSE:UNP). Union Pacific Corporation (NYSE:UNP) is a US-based railroad company. The one-month return of Union Pacific Corporation (NYSE:UNP) was -4.69%, and its shares lost 2.80% of their value over the last 52 weeks. On March 14, 2025, Union Pacific Corporation (NYSE:UNP) stock closed at $237.53 per share with a market capitalization of $143.536 billion.
Diamond Hill Large Cap Concentrated Fund stated the following regarding Union Pacific Corporation (NYSE:UNP) in its Q4 2024 investor letter:
“Other bottom Q4 contributors included Extra Space Storage, Texas Instruments and Union Pacific Corporation (NYSE:UNP). Railroad operator Union Pacific saw muted volume growth in the quarter. Further, investors are contemplating the possibility higher tariffs on goods coming from Mexico could weigh on Union Pacific’s business, which handles a large share of border crossings.”
An intermodal container train winding through a rural landscape.
Union Pacific Corporation (NYSE:UNP) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 93 hedge fund portfolios held Union Pacific Corporation (NYSE:UNP) at the end of the fourth quarter which was 78 in the previous quarter. Union Pacific Corporation (NYSE:UNP) reported a net income of $1.8 billion and earnings per share of $2.91 for the fourth quarter of 2024, both reflecting a 7% increase. While we acknowledge the potential of Union Pacific Corporation (NYSE:UNP) 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 Union Pacific Corporation (NYSE:UNP) and shared the list of best railroad stocks to buy. In addition, please check out our hedge fund investor letters Q4 2024 page for more investor letters from hedge funds and other leading investors.
READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks.
Disclosure: None. This article is originally published at Insider Monkey.