Diamond Hill Capital, an investment management company, released its “Large Cap Strategy” first-quarter 2024 investor letter. A copy of the letter can be downloaded here. Markets rose significantly in the first quarter of 2024, providing positive returns across most regions and countries. The strategy outperformed the Russell 1000 Index in Q1 and returned 10.64% (net) vs 10.30% for the index. In addition, you can check the top 5 holdings of the strategy to know its best picks in 2024.
Diamond Hill Large Cap Strategy highlighted stocks like Sysco Corporation (NYSE:SYY) in the first quarter 2024 investor letter. Headquartered in Houston, Texas, Sysco Corporation (NYSE:SYY) markets and distributes various food and related products. Sysco Corporation’s (NYSE:SYY) one-month return was -3.46%, and its shares gained 0.44% of their value over the last 52 weeks. On June 3, 2024, Sysco Corporation (NYSE:SYY) stock closed at $73.19 per share with a market capitalization of $36.447 billion.
Diamond Hill Large Cap Strategy stated the following regarding Sysco Corporation (NYSE:SYY) in its first quarter 2024 investor letter:
“Portfolio activity has remained modest as valuations have risen, and it is increasingly challenging to find high-quality companies trading at interesting valuations. However, we did identify two new investments in Q1: Sysco Corporation (NYSE:SYY) and KeyCorp.
Sysco is the market-share leader in the US food-service industry, in which scale and size are critical. We believe Sysco is exiting the pandemic in a stronger position after investing organically and inorganically in its business. It is well-positioned to harvest these investments over the next several years. However, Sysco trades at a discount to its historical multiple, which we think makes for an attractive entry point into this high-quality company.”
A butcher shop showcasing fresh meats and seafood for customers.
Sysco Corporation (NYSE:SYY) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 46 hedge fund portfolios held Sysco Corporation (NYSE:SYY) at the end of the first quarter which was 39 in the previous quarter. While we acknowledge the potential of SYY 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 Sysco Corporation (NYSE:SYY) and shared Aristotle Capital’s Value Equity Strategy’s views on the company. 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.
