Diamond Hill Capital, an investment management company, released its “Mid Cap Strategy” second-quarter 2024 investor letter. A copy of the letter can be downloaded here. In Q2, markets saw a modest increase, providing favorable results in most regions and nations. In the quarter the strategy lagged the Russell Midcap Index. The relative weakness was mostly concentrated in the industrial holdings, which underperformed their index counterparts. Another area of relative weakness came from holdings in utilities and consumer discretionary. On the other hand, holdings in health care and materials were comparatively strong. The strategy returned -4.39% (gross) and -4.56% (net) in the quarter vs -3.35% for the index. In addition, you can check the top 5 holdings of the strategy to know its best picks in 2024.
Diamond Hill Mid Cap Strategy highlighted stocks like Sysco Corporation (NYSE:SYY) in the second quarter 2024 investor letter. Sysco Corporation (NYSE:SYY) markets and distributes various food and related products to the food service or food-away-from-home industry. The one-month return of Sysco Corporation (NYSE:SYY) was 0.72%, and its shares gained 9.24% of their value over the last 52 weeks. On August 26, 2024, Sysco Corporation (NYSE:SYY) stock closed at $76.99 per share with a market capitalization of $37.86 billion.
Diamond Hill Mid Cap Strategy stated the following regarding Sysco Corporation (NYSE:SYY) in its Q2 2024 investor letter:
“Despite rising valuations, we continue finding attractively valued, quality companies the market is overlooking amid its increasingly narrow focus on the mega-cap technology stocks dominating the major indices. In Q2, we introduced new positions in Sysco Corporation (NYSE:SYY), Civitas Resources, Labcorp Holdings and VeriSign.
Sysco is the US’s leading food-service distributor. We believe it is a high-quality business, and we have followed it for many years. As investors’ concerns about slowing quick-service restaurant traffic have pressured shares, we capitalized on what we believe to be a temporary headwind to initiate a position at an attractive valuation.”
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, 37 hedge fund portfolios held Sysco Corporation (NYSE:SYY) at the end of the second quarter which was 46 in the previous quarter. While we acknowledge the potential of Sysco Corporation (NYSE: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 the list of largest publicly traded food companies in 2024. Diamond Hill Capital’s Large Cap Strategy initiated a position in Sysco Corporation (NYSE:SYY) during Q1 2024. 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.
