Diamond Hill Capital, an investment management company, released its “Small Cap Fund” third-quarter 2024 investor letter. A copy of the letter can be downloaded here. In Q3, markets contributed to strong year-to-date gains, though not without some volatility. As shown by the Russell 2000 Index, small-cap equities increased by 9%, while the broad market Russell 3000 Index increased by slightly more than 6%. Against this backdrop, the strategy trailed the index and returned 8.43% in the quarter compared to 9.27% for the Russell 2000 Index. 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 Perma-Fix Environmental Services, Inc. (NASDAQ:PESI) in the third quarter 2024 investor letter. Headquartered in Atlanta, Georgia, Perma-Fix Environmental Services, Inc. (NASDAQ:PESI) is an environmental and technology know-how company. The one-month return of Perma-Fix Environmental Services, Inc. (NASDAQ:PESI) was 14.81%, and its shares gained 64.89% of their value over the last 52 weeks. On October 30, 2024, Perma-Fix Environmental Services, Inc. (NASDAQ:PESI) stock closed at $14.85 per share with a market capitalization of $223.578 million.
Diamond Hill Small Cap Fund stated the following regarding Perma-Fix Environmental Services, Inc. (NASDAQ:PESI) in its Q3 2024 investor letter:
“We continue finding compelling new ideas, even as the bull market proceeds. In Q3, we initiated new positions in Insperity, International General Insurance Holdings, Perma-Fix Environmental Services, Inc. (NASDAQ:PESI) and Proficient Auto Logistics.
Perma-Fix Environmental Services provides hazardous and nuclear waste disposal. The company benefits from a deep moat around its treatment facilities, regulatory permits and intellectual property. We believe it is well-positioned to generate accelerating organic growth as it begins working on significant, long-term contracts at new facilities, and we capitalized on what we view as an attractive valuation to purchase shares in a company offering an idiosyncratic risk profile relative to other portfolio holdings.”
Manned and unmanned hazardous waste-processing equipment operating in a hazardous environment.
Perma-Fix Environmental Services, Inc. (NASDAQ:PESI) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 7 hedge fund portfolios held Perma-Fix Environmental Services, Inc. (NASDAQ:PESI) at the end of the second quarter which was 6 in the previous quarter. In the second quarter, the total revenue of Perma-Fix Environmental Services, Inc. (NASDAQ:PESI) from continuing operations was $14.0 million compared to last year’s $25 million. While we acknowledge the potential of Perma-Fix Environmental Services, Inc. (NASDAQ:PESI) 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 Perma-Fix Environmental Services, Inc. (NASDAQ:PESI) and shared Long Cast Advisers’ views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q3 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.