Diamond Hill Capital, an investment management company, released its “Small Cap Fund” second-quarter 2024 investor letter. A copy of the same can be downloaded here. Equity markets reported mixed results in the second quarter of 2024. However, the broad market Russell 3000 Index and the large-cap-focused Russell 1000 Index advanced approximately 3%, most other market segments posted negative returns. Diamond Hill Small Cap Fund slightly trailed its benchmark, the Russell 2000 Index, in Q2 and returned -3.42% while the benchmark return was -3.28% during the same period. For more information on the fund’s top picks in 2024, please check its top five holdings.
Diamond Hill Small Cap Fund highlighted stocks like Allient Inc. (NASDAQ:ALNT), in the second quarter 2024 investor letter. Allient Inc. (NASDAQ:ALNT) designs, manufactures, and sells precision and specialty-controlled motion components and systems across various industries. The one-month return of Allient Inc. (NASDAQ:ALNT) was -9.38%, and its shares lost 26.06% of their value over the last 52 weeks. On August 7, 2024, Allient Inc. (NASDAQ:ALNT) stock closed at $23.86 per share with a market capitalization of $400.268 million.
Diamond Hill Small Cap Fund stated the following regarding Allient Inc. (NASDAQ:ALNT) in its Q2 2024 investor letter:
Other bottom Q2 contributors included Live Oak Bancshares, Allegiant Travel and Allient. Designer and manufacturer of precision and specialty-controlled motion components and systems Allient faced a mixed-demand environment in Q2 as supply normalized and demand weakened in pockets of Europe. Looking forward, we expect the company to benefit from its end-market diversity as order backlogs firm up and channel inventory corrects. Further, Allient is undertaking an efficiency program to integrate recent acquisitions and better align its operating structure to support growth and margin expansion in the coming years.
Close up of a precision injection molding machine in a metal fabrication facility.
Allient Inc. (NASDAQ:ALNT) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 22 hedge fund portfolios held Allient Inc. (NASDAQ:ALNT) at the end of the first quarter which was 19 in the previous quarter. The first quarter revenue of Allient Inc. (NASDAQ:ALNT) increase 1% to $146.7 million. While we acknowledge the potential of Allient Inc. (NASDAQ:ALNT) 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 Allient Inc. (NASDAQ:ALNT) and shared Diamond Hill Small Cap Fund’s views on the company in Q4 2023. 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.
