Diamond Hill Capital, an investment management company, released its “Large Cap Strategy” fourth-quarter 2022 investor letter. A copy of the same can be downloaded here. The strategy returned 10.96% net in the fourth quarter compared to a 7.24% return for the Russell 1000 Index. Holdings in the technology and consumer discretionary sectors helped the strategy to outperform in the quarter. The strategy returned better than the index during 2022 but still declined by double digits. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.
Diamond Hill Large Cap Strategy highlighted stocks like Chevron Corporation (NYSE:CVX) in its Q4 2022 investor letter. Headquartered in San Ramon, California, Chevron Corporation (NYSE:CVX) engages in energy and chemicals operations. On February 15, 2023, Chevron Corporation (NYSE:CVX) stock closed at $169.01 per share. One-month return of Chevron Corporation (NYSE:CVX) was -5.58%, and its shares gained 26.50% of their value over the last 52 weeks. Chevron Corporation (NYSE:CVX) has a market capitalization of $326.804 billion.
Diamond Hill Large Cap Strategy made the following comment about Chevron Corporation (NYSE:CVX) in its Q4 2022 investor letter:
“Most recently in Q4, we increased our energy exposure by reinitiating a position in a company we know well and have owned in the past, integrated oil and gas company Chevron Corporation (NYSE:CVX).
We previously owned Chevron as recently as February 2022. We sold our position at that time due to heightened risk associated with operations in Kazakhstan, which sends oil through a pipeline that runs through Russia out to the Black Sea. When Russia invaded Ukraine, we believed there was real risk that something would happen to inhibit Chevron’s ability to get that oil to the market. We didn’t believe that risk was reflected in the stock price, so we sold our position. Today, 10+ months into the Ukraine crisis, more information has become available regarding the Kazakhstan operations, and the associated risks are now well-known. We believe those risks are fully priced into the current stock valuation. Chevron is one of the best operators in its field, with a diversified portfolio and strong management, and we took the opportunity to reinvest when the stock was trading below our estimate of intrinsic value.”
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Chevron Corporation (NYSE:CVX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 66 hedge fund portfolios held Chevron Corporation (NYSE:CVX) at the end of the third quarter, which was 59 in the previous quarter.
We discussed Chevron Corporation (NYSE:CVX) in another article and shared the list of most profitable oil stocks in the world. In addition, please check out our hedge fund investor letters Q4 2022 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.
