Diamond Hill Capital, an investment management company, released its “Large Cap Strategy” fourth-quarter 2023 investor letter. A copy of the same can be downloaded here. The strategy trailed the Russell 1000 Index for Q4 and underperformed for the calendar year. In Q4, both the fund’s below-benchmark weighting and individual holdings underperformed index peers, resulting in relative weakness in the technology exposure for both the full year and the quarter. In addition, overweight exposure to the weak energy sector detracted from the relative results, along with healthcare holdings. Financial holdings and over-benchmark allocation boosted performance. Positive stock picks in real estate and consumer staples sectors also contributed. The strategy returned 11.39% (net) in Q4 compared to 11.96% for the Russell 1000 Index. For the full year, the strategy returned 13.68% (net) compared to a 26.53% return for the index. In addition, you can check the top 5 holdings of the strategy to know its best picks in 2023.
Diamond Hill Large Cap Strategy featured stocks like KKR & Co. Inc. (NYSE:KKR) in the fourth quarter 2023 investor letter. Headquartered in New York, New York, KKR & Co. Inc. (NYSE:KKR) is an equity and real estate investment firm. On February 28, 2024, KKR & Co. Inc. (NYSE:KKR) stock closed at $95.85 per share. One-month return of KKR & Co. Inc. (NYSE:KKR) was 8.74%, and its shares gained 71.74% of their value over the last 52 weeks. KKR & Co. Inc. (NYSE:KKR) has a market capitalization of $85.203 billion.
Diamond Hill Large Cap Strategy stated the following regarding KKR & Co. Inc. (NYSE:KKR) in its fourth quarter 2023 investor letter:
“Among our top individual contributors in Q4 were KKR & Co. Inc. (NYSE:KKR) and Bank of America. Shares of private equity firm KKR received a boost in Q4 from the Fed’s recent dovish pivot. However, it is also delivering accelerating fundamentals and has made positive changes to its employee compensation structure and reporting framework. Under this new compensation structure, shareholders will be entitled to a greater portion of fee-related earnings — KKR’s stable and recurring earnings stream including management fees — while receiving a significantly smaller portion of realized performance income. The new reporting framework will highlight the recurring portion of the company’s realized investment income, which we anticipate will, over time, help reduce the discount at which shares are currently trading. Given the strong near-term outlook for fundraising, deployment and monetization, we are optimistic about the company’s positioning.”
A modern looking financial adviser sitting in front of a trading monitor, gesturing to a group of investors.
KKR & Co. Inc. (NYSE:KKR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. At the end of the fourth quarter, KKR & Co. Inc. (NYSE:KKR) was held by 68 hedge fund portfolios, down from 69 in the previous quarter, according to our database.
We discussed KKR & Co. Inc. (NYSE:KKR) in another article and shared the list of best breakout stocks to buy. 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.
