Diamond Hill Capital, an investment management company, released its “Select Strategy” second-quarter 2024 investor letter. A copy of the letter can be downloaded here. In Q2, markets saw a modest boost, delivering positive returns across the majority of regions and nations. The Russell 3000 Index showed a +3% increase in US stocks; however, the majority of the gains came from large-cap stocks, which increased by about +4%. Returns were negative across the cap spectrum, with mid-caps and small caps, as indicated by their respective Russell indices, each down about -3%. The portfolio underperformed the Russell 3000 Index in Q2 and returned -4.96% net of fees compared to 3.22% for the index. In addition, you can check the fund’s top 5 holdings to find out its best picks for 2024.
Diamond Hill Select Strategy highlighted stocks like International Paper Company (NYSE:IP) in the second quarter 2024 investor letter. International Paper Company (NYSE:IP) produces and sells renewable fiber-based packaging and pulp products. The one-month return of International Paper Company (NYSE:IP) was 5.47%, and its shares gained 25.50% of their value over the last 52 weeks. On July 30, 2024, International Paper Company (NYSE:IP) stock closed at $45.92 per share with a market capitalization of $15.951 billion.
Diamond Hill Select Strategy stated the following regarding International Paper Company (NYSE:IP) in its Q2 2024 investor letter:
“Other top individual contributors in the quarter included Coherent and new holding International Paper Company (NYSE:IP). International Paper is one of the US’s largest manufacturers of containerboards, which is used to make corrugated boxes and other packaging materials. We expect that as the demand environment improves and the company focuses on its commercial execution, it will be able to improve profitability and bring operating margins back to normalized levels. Given what we view as an attractive valuation for a high-quality company, we capitalized on the opportunity to initiate a position in Q2. Shares subsequently rallied after reports that Brazilian company Suzano is interested in acquiring the company.”
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International Paper Company (NYSE:IP) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 37 hedge fund portfolios held International Paper Company (NYSE:IP) at the end of the first quarter which was 31 in the previous quarter. Adjusted operating earnings per share of International Paper Company (NYSE:IP) for the second quarter were $0.55, compared to $0.17 for the first quarter. While we acknowledge the potential of International Paper Company (NYSE:IP) 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 International Paper Company (NYSE:IP) and shared the list of best land and timber stocks to buy according to hedge funds. In addition, please check out our hedge fund investor letters Q2 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.
