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 Ciena Corporation (NYSE:CIEN) in the fourth quarter 2023 investor letter. Headquartered in Hanover, Maryland, Ciena Corporation (NYSE:CIEN) provides network and communication infrastructure. On March 7, 2024, Ciena Corporation (NYSE:CIEN) stock closed at $52.84 per share. One-month return of Ciena Corporation (NYSE:CIEN) was -6.87%, and its shares gained 6.68% of their value over the last 52 weeks. Ciena Corporation (NYSE:CIEN) has a market capitalization of $7.662 billion.
Diamond Hill Mid Cap Strategy stated the following regarding Ciena Corporation (NYSE:CIEN) in its fourth quarter 2023 investor letter:
“Other bottom contributors in Q4 included Coterra Energy, VF Corporation andCiena Corporation (NYSE:CIEN). Networking systems company Ciena’s customers are working through their inventories, creating some uncertainty around near-term demand. However, the company’s cloud customers have helped offset some of this uncertainty and, longer term, we believe Ciena has a meaningful opportunity to take share in the switching and routing and optical markets.”
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Ciena Corporation (NYSE:CIEN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. At the end of the fourth quarter, Ciena Corporation (NYSE:CIEN) was held by 39 hedge fund portfolios, up from 26 in the previous quarter, according to our database.
We discussed Ciena Corporation (NYSE:CIEN) in another article and shared Carillon Chartwell Mid Cap Value Fund’s views on the company in the previous quarter. 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.
