Diamond Hill Capital, an investment management company, released its “Long-Short Fund” fourth-quarter 2023 investor letter. A copy of the same can be downloaded here. The portfolio achieved positive returns in Q4, but it trailed the Russell 1000 Index and the blended benchmark (60% Russell 1000 Index/40% Bloomberg US Treasury Bills 1-3 Month Index). The short positions didn’t perform as well as the index, but they still contributed positively to the overall performance. The long positions in financials, on the other hand, performed better than the index. However, long positions in technology and the fund’s below-benchmark exposure didn’t perform well and were the cause of underperformance in Q4. In addition, you may look at the fund’s top 5 holdings to learn about its best picks in 2023.
Diamond Hill Long-Short Fund featured stocks like Truist Financial Corporation (NYSE:TFC) in the fourth quarter 2023 investor letter. Headquartered in Charlotte, North Carolina, Truist Financial Corporation (NYSE:TFC) is a financial services company that provides banking and trust services. On April 3, 2024, Truist Financial Corporation (NYSE:TFC) stock closed at $37.95 per share. One-month return of Truist Financial Corporation (NYSE:TFC) was 2.79%, and its shares gained 15.91% of their value over the last 52 weeks. Truist Financial Corporation (NYSE:TFC) has a market capitalization of $50.648 billion.
Diamond Hill Long-Short Fund stated the following regarding Truist Financial Corporation (NYSE:TFC) in its fourth quarter 2023 investor letter:
“On an individual holdings’ basis, top contributors to return in Q4 were all from our long book, including KKR, Citigroup and Truist Financial Corporation (NYSE:TFC). Banking and financial services companies Citigroup and Truist Financial rallied alongside large-cap banks broadly in Q4 as the market focused less on interest-rate risks amid the Fed’s announcement it was likely done raising interest rates. Banks also likely benefited from a relief rally following three-plus quarters of negative sentiment to start the year. Industry trends aside, however, we maintain our conviction in both companies. Under new leadership, Citigroup continues improving its position relative to competitors and has an attractive opportunity to close its valuation gap relative to peers, while Truist has compelling exposure to attractive geographies in the Southeast and Mid-Atlantic as well as to the insurance brokerage business which should allow the company to generate above average returns over time.”
A closeup view of a hand inserting a credit card into an ATM machine.
Truist Financial Corporation (NYSE:TFC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. At the end of the fourth quarter, Truist Financial Corporation (NYSE:TFC) was held by 59 hedge fund portfolios, compared to 47 in the previous quarter, according to our database.
We discussed Truist Financial Corporation (NYSE:TFC) in another article and shared Ariel Global Fund’s views on the company. 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.
