Diamond Hill Capital, an investment management company, released its “Mid Cap Strategy” fourth-quarter 2023 investor letter. A copy of the same can be downloaded here. During Q4, the markets experienced a sharp rebound, resulting in positive returns in most regions and countries. The portfolio had a better performance than the Russell Midcap Index during the Q4 period, but it underperformed for the entire calendar year. The strategy experienced relative strength in Q4, which was mainly due to the real estate holdings and exposure. These benefited from the declining interest rates environment. Holdings in industrials, financials, and consumer discretionary also added to the performance, as well as the below-benchmark exposure to energy. However, the below-benchmark exposure to technology and above-benchmark exposure to consumer staples detracted from the relative performance. The strategy delivered returns of 13.68% (net of fees) in Q4 and 9.88% (net of fees) for the full year. This compares to the Russell Midcap Index returns of 12.82% and 17.23% for Q4 and the full year, respectively. In addition, you can check the top 5 holdings of the strategy to know its best picks in 2023.
Diamond Hill Mid Cap Strategy featured stocks like GoDaddy Inc. (NYSE:GDDY) in the fourth quarter 2023 investor letter. Headquartered in Tempe, Arizona, GoDaddy Inc. (NYSE:GDDY) offers domain name registration and web hosting services. On March 7, 2024, GoDaddy Inc. (NYSE:GDDY) stock closed at $113.82 per share. One-month return of GoDaddy Inc. (NYSE:GDDY) was 1.09%, and its shares gained 51.80% of their value over the last 52 weeks. GoDaddy Inc. (NYSE:GDDY) has a market capitalization of $16.217 billion.
Diamond Hill Mid Cap Strategy stated the following regarding GoDaddy Inc. (NYSE:GDDY) in its fourth quarter 2023 investor letter:
“Despite a rising market environment, we were able to initiate several new positions in Q4, including GoDaddy Inc. (NYSE:GDDY), Envista Holdings, Insperity and Fortune Brands Innovations. GoDaddy designs and develops cloud-based web platforms primarily for small businesses — an attractive business with a largely recurring, subscription-based revenue model. The company has a wide moat given its dominant domains segment, which is customers’ main onramp to the Internet and provides the company with a customer acquisition advantage relative to its competitors. GoDaddy has improved its ability to capitalize on this advantage as it has improved its website-building software and commerce capabilities, which is already leading to increased sales among customers. As the economy continues normalizing post-COVID, we believe GoDaddy will be well-positioned over the next five years and initiated a position.”
A close-up of a complex web page being developed and refined by a web development specialist.
GoDaddy Inc. (NYSE:GDDY) is not on our list of 30 Most Popular Stocks Among Hedge Funds. At the end of the fourth quarter, GoDaddy Inc. (NYSE:GDDY) was held by 42 hedge fund portfolios, up from 41 in the previous quarter, according to our database.
We discussed GoDaddy Inc. (NYSE:GDDY) in another article and shared long-term returns of Jeff Smith’s activist targets. In addition, please check out our hedge fund investor letters Q4 2023 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.
