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 Mr. Cooper Group Inc. (NASDAQ:COOP) in the second quarter 2024 investor letter. Mr. Cooper Group Inc. (NASDAQ:COOP) is a residential loan service-providing company. The one-month return of Mr. Cooper Group Inc. (NASDAQ:COOP) was 13.02%, and its shares gained 55.94% of their value over the last 52 weeks. On July 30, 2024, Mr. Cooper Group Inc. (NASDAQ:COOP) stock closed at $90.96 per share with a market capitalization of $5.895 billion.
Diamond Hill Select Strategy stated the following regarding Mr. Cooper Group Inc. (NASDAQ:COOP) in its Q2 2024 investor letter:
“Among our top individual contributors in Q2 were Amazon, Texas Instruments and Mr. Cooper Group Inc. (NASDAQ:COOP). Mortgage-servicing company Mr. Cooper Group is benefiting from a high interest-rate environment, which is supporting increased profitability in the mortgage-servicing business.”
A businessperson examining financial graphs and charts of the company’s portfolio, while surrounded by residential mortgage loan documents.
Mr. Cooper Group Inc. (NASDAQ:COOP) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 33 hedge fund portfolios held Mr. Cooper Group Inc. (NASDAQ:COOP) at the end of the first quarter which was 34 in the previous quarter. Mr. Cooper Group Inc. (NASDAQ:COOP) reported pre-tax operating income of $219 million for the second quarter, a 46% year-over-year increase. Operating ROTCE was 15.3%, up nearly 400 basis points from last year. While we acknowledge the potential of Mr. Cooper Group Inc. (NASDAQ:COOP) 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 Mr. Cooper Group Inc. (NASDAQ:COOP) and shared Diamond Hill Select Strategy’s views on the company in the previous quarter. 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.
