Diamond Hill Capital, an investment management company, released its “Select Strategy” second-quarter 2024 investor letter. A copy of the letter can be downloaded here. In Q2, markets saw a modest boost, delivering positive returns across the majority of regions and nations. The Russell 3000 Index showed a +3% increase in US stocks; however, the majority of the gains came from large-cap stocks, which increased by about +4%. Returns were negative across the cap spectrum, with mid-caps and small caps, as indicated by their respective Russell indices, each down about -3%. The portfolio underperformed the Russell 3000 Index in Q2 and returned -4.96% net of fees compared to 3.22% for the index. In addition, you can check the fund’s top 5 holdings to find out its best picks for 2024.
Diamond Hill Select Strategy highlighted stocks like Lear Corporation (NYSE:LEA), in the second quarter 2024 investor letter. Lear Corporation (NYSE:LEA) is an automotive seating and electrical components manufacturer. The one-month return of Lear Corporation (NYSE:LEA) was 6.28%, and its shares lost 21.13% of their value over the last 52 weeks. On July 29, 2024, Lear Corporation (NYSE:LEA) stock closed at $121.81 per share with a market capitalization of $6.853 billion.
Diamond Hill Select Strategy stated the following regarding Lear Corporation (NYSE:LEA) in its Q2 2024 investor letter:
“Among our bottom individual Q2 contributors were Lear Corporation (NYSE:LEA) and Regal Rexnord. Leading global automotive seating manufacturer Lear underperformed in Q2 as slowing electric vehicle (EV) adoption weighed on the company’s E-Systems segment in the near term. Further, rising dealer inventories are contributing to some concerns about the near-term demand outlook — though it’s worth noting dealer inventories remain below pre-COVID levels.”
A mechanic working in a busy automotive service station, attended by customers.
Lear Corporation (NYSE:LEA) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 32 hedge fund portfolios held Lear Corporation (NYSE:LEA) at the end of the first quarter which was 34 in the previous quarter. Lear Corporation (NYSE:LEA) reported modest revenue growth in the second quarter, exceeding $6 billion compared to last year. Core operating earnings were unchanged at $302 million, but adjusted earnings per share increased by 8% to $3.60. While we acknowledge the potential of Lear Corporation (NYSE:LEA) 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 addition, please check out our hedge fund investor letters Q2 2024 page for more investor letters from hedge funds and other leading investors.
READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks.
Disclosure: None. This article is originally published at Insider Monkey.
