Fiduciary Management Inc. (FMI), an independent money management firm, released its fourth quarter 2023 investor letter. A copy of the same can be downloaded here. Global stock markets had a strong year in 2023, with robust consumer demand, tight labor markets, and declining inflation all contributing to the positive outlook. The Small Cap Strategy rose 12.4% (gross) / 12.2% (net) in the quarter compared to 14.03% and 15.26% for the Russell 2000 Index and Russell 2000 Value Index. FMI Large Cap Strategy gained 13.1% (gross) / 13.0% (net) compared with 11.69% and 9.50% for the S&P 500 and iShares Russell 1000 Value ETF, respectively. The FMI All Cap Equity advanced 11.4% (gross) / 11.2% (net), compared with 12.14% for the iShares Russell 3000 ETF. Finally, the FMI International Strategies gained 6.4% (gross) / 6.2% (net) on a currency-hedged basis and 9.6% (gross) / 9.4% (net) on a currency-unhedged basis. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Fiduciary Management featured stocks such as Diageo plc (NYSE:DEO) in the Q4 2023 investor letter. Headquartered in London, the United Kingdom, Diageo plc (NYSE:DEO) engages in the production and distribution of alcoholic beverages. On January 10, 2024, Diageo plc (NYSE:DEO) stock closed at $142.75 per share. One-month return of Diageo plc (NYSE:DEO) was -2.04%, and its shares lost 20.96% of their value over the last 52 weeks. Diageo plc (NYSE:DEO) has a market capitalization of $79.809 billion.
Fiduciary Management stated the following regarding Diageo plc (NYSE:DEO) in its fourth quarter 2023 investor letter:
“Diageo plc (NYSE:DEO) is the #1 player in the large and attractive global spirits industry, with #1 positions in Scotch, Tequila, Gin, Vodka, and Rum. Total Beverage Alcohol (TBA) is a $950+ billion market, with Diageo at 4.7% of TBA, and aspiring to 6% by 2030. Premiumization in spirits is value creating, and Diageo owns 9 of the top 30 global brands, including Johnnie Walker, Tanqueray, Smirnoff, and Guinness. 12 of Diageo’s top brands are over 140 years old. The company has strong exposure to growth in emerging markets (38% of sales) and has proven to be a superior brand builder. The Diageo portfolio has been optimized, with limited reliance on M&A over the last decade. Capital allocation has been shareholder friendly. Following a period of post-COVID inventory destocking, Diageo trades at its lowest valuation in 10 years.”
A close-up of an iconic bottle of branded spirit produced by the distillery.
Diageo plc (NYSE:DEO) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 30 hedge fund portfolios held Diageo plc (NYSE:DEO) at the end of third quarter which was 25 in the previous quarter.
We discussed Diageo plc (NYSE:DEO) in another article and shared the list of best sin stocks to invest 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.
