Diamond Hill Capital, an investment management company, released its “Large Cap Strategy” fourth-quarter 2024 investor letter. A copy of the letter can be downloaded here. Despite inconsistent Q4 gains, markets ended the year positively. The portfolio trailed the Russell 1000 Index benchmark in Q4 and 2024. In Q4, the strategy returned -2.27% (net) vs 2.75% returns for the index and in 2024 the strategy returned 12.06% (net) vs 24.51% returns for the index. To get an idea of the fund’s best choices for 2024, check out its top 5 positions.
In its fourth quarter 2024 investor letter, Diamond Hill Large Cap Strategy emphasized stocks such as Colgate-Palmolive Company (NYSE:CL). Colgate-Palmolive Company (NYSE:CL) engages in the manufacturing and sale of consumer product. The one-month return Colgate-Palmolive Company (NYSE:CL) was 0.91%, and its shares gained 1.21% of their value over the last 52 weeks. On March 20, 2025, Colgate-Palmolive Company (NYSE:CL) stock closed at $90.28 per share with a market capitalization of $73.265 billion.
Diamond Hill Large Cap Strategy stated the following regarding Colgate-Palmolive Company (NYSE:CL) in its Q4 2024 investor letter:
“As valuations have continued rising and the economic cycle has gotten relatively long in the tooth, we’ve thought carefully about where and how we are exposed to more cyclical stocks. As such, we initiated just two new positions in Q4: Colgate-Palmolive Company (NYSE:CL) and the aforementioned lululemon.
Colgate-Palmolive is a high-quality business with leading positions in oral care, home products and pet nutrition. Historically, the company has allocated capital well, and it produces significant free cash flows. Shares were pressured in Q4 primarily, we believe, in sympathy with near-term macroeconomic concerns rather than any fundamental issues at the business. We consequently capitalized on the underperformance and compelling valuation to start a position.”
An array of toothpaste, toothbrushes, and mouthwashes on a bright background, highlighting the company’s oral care products.
Colgate-Palmolive Company (NYSE:CL) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 62 hedge fund portfolios held Colgate-Palmolive Company (NYSE:CL) at the end of the fourth quarter which was 54 in the previous quarter. While we acknowledge the potential of Colgate-Palmolive Company (NYSE:CL) 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 Colgate-Palmolive Company (NYSE:CL) and shared the list of best skincare stocks to buy according to hedge funds. In addition, please check out our hedge fund investor letters Q4 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.