Diamond Hill Capital, an investment management company, released its “Mid Cap Strategy” fourth-quarter 2023 investor letter. A copy of the same can be downloaded here. During Q4, the markets experienced a sharp rebound, resulting in positive returns in most regions and countries. The portfolio had a better performance than the Russell Midcap Index during the Q4 period, but it underperformed for the entire calendar year. The strategy experienced relative strength in Q4, which was mainly due to the real estate holdings and exposure. These benefited from the declining interest rates environment. Holdings in industrials, financials, and consumer discretionary also added to the performance, as well as the below-benchmark exposure to energy. However, the below-benchmark exposure to technology and above-benchmark exposure to consumer staples detracted from the relative performance. The strategy delivered returns of 13.68% (net of fees) in Q4 and 9.88% (net of fees) for the full year. This compares to the Russell Midcap Index returns of 12.82% and 17.23% for Q4 and the full year, respectively. In addition, you can check the top 5 holdings of the strategy to know its best picks in 2023.
Diamond Hill Mid Cap Strategy featured stocks like Parker-Hannifin Corporation (NYSE:PH) in the fourth quarter 2023 investor letter. Headquartered in Cleveland, Ohio, Parker-Hannifin Corporation (NYSE:PH) manufactures motion and control technologies and systems. On March 7, 2024, Parker-Hannifin Corporation (NYSE:PH) stock closed at $539.48 per share. One-month return of Parker-Hannifin Corporation (NYSE:PH) was 3.47%, and its shares gained 59.39% of their value over the last 52 weeks. Parker-Hannifin Corporation (NYSE:PH) has a market capitalization of $69.275 billion.
Diamond Hill Mid Cap Strategy stated the following regarding Parker-Hannifin Corporation (NYSE:PH) in its fourth quarter 2023 investor letter:
“Other top contributors in Q4 included CubeSmart, Webster Financial and Parker-Hannifin Corporation (NYSE:PH). Diversified industrial and aerospace manufacturer Parker-Hannifin’s management team is executing well, diversifying the company beyond heavily cyclical areas to higher-, steadier-growing areas like aerospace and strategically deploying capital — decisions which are contributing to resilient top-line growth and margin expansion.”
A robotic arm in a factory demonstrating the application of motion control technologies.
Parker-Hannifin Corporation (NYSE:PH) is not on our list of 30 Most Popular Stocks Among Hedge Funds. At the end of the fourth quarter, Parker-Hannifin Corporation (NYSE:PH) was held by 63 hedge fund portfolios, up from 52 in the previous quarter, according to our database.
We discussed Parker-Hannifin Corporation (NYSE:PH) in another article and shared the list of best dividend growth stocks to buy and hold in 2024. 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.
