Multiple Headwinds Dragged Ciena Corporation (CIEN) in Q2

Diamond Hill Capital, an investment management company, released its “Mid Cap Strategy” second-quarter 2023 investor letter. A copy of the same can be downloaded here. The portfolio delivered positive results in the second quarter while modestly trailing the Russell Midcap Index. The healthcare holdings positively contributed to the relative performance while the information technology and materials holdings trailed benchmark peers. The fund returned 6.76% (net) in Q2 compared to 9.10% for the benchmark. In addition, you can check the top 5 holdings of the strategy to know its best picks in 2023.

Diamond Hill Capital Mid Cap Strategy highlighted stocks like Ciena Corporation (NYSE:CIEN) in the second quarter 2023 investor letter. Headquartered in Hanover, Maryland, Ciena Corporation (NYSE:CIEN) provides network and communication infrastructure. On September 6, 2023, Ciena Corporation (NYSE:CIEN) stock closed at $48.74 per share. One-month return of Ciena Corporation (NYSE:CIEN) was 16.99%, and its shares gained 11.10% of their value over the last 52 weeks. Ciena Corporation (NYSE:CIEN) has a market capitalization of $7.287 billion.

Diamond Hill Capital Mid Cap Strategy made the following comment about Ciena Corporation (NYSE:CIEN) in its Q2 2023 investor letter:

“Other bottom contributors included Ciena Corporation (NYSE:CIEN), Sensata Technologies and Post Holdings. Networking systems company Ciena has faced a significant orders backlog given ongoing supply chain constraints. With those now easing, Ciena has begun fulfilling orders, generating strong fundamentals. However, two of its largest segments — telecommunications and webscale — have begun pushing out orders, leading to concerns those orders could ultimately be cancelled and weighing on shares. However, our long-term fundamental outlook on the company remains favorable, and we anticipate it will work through these near-term issues.”

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Ciena Corporation (NYSE:CIEN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 35 hedge fund portfolios held Ciena Corporation (NYSE:CIEN) at the end of second quarter which was 32 in the previous quarter.

We discussed Ciena Corporation (NYSE:CIEN) in another article and shared Giverny Capital Asset Management’s views on the company. In addition, please check out our hedge fund investor letters Q2 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.