Diamond Hill Capital, an investment management company, released its “Mid Cap Strategy” second-quarter 2024 investor letter. A copy of the letter can be downloaded here. In Q2, markets saw a modest increase, providing favorable results in most regions and nations. In the quarter the strategy lagged the Russell Midcap Index. The relative weakness was mostly concentrated in the industrial holdings, which underperformed their index counterparts. Another area of relative weakness came from holdings in utilities and consumer discretionary. On the other hand, holdings in health care and materials were comparatively strong. The strategy returned -4.39% (gross) and -4.56% (net) in the quarter vs -3.35% for the index. In addition, you can check the top 5 holdings of the strategy to know its best picks in 2024.
Diamond Hill Mid Cap Strategy highlighted stocks like Mid-America Apartment Communities, Inc. (NYSE:MAA) in the second quarter 2024 investor letter. Mid-America Apartment Communities, Inc. (NYSE:MAA) is a real estate investment trust (REIT) focused on delivering quality apartment communities. The one-month return of Mid-America Apartment Communities, Inc. (NYSE:MAA) was 14.70%, and its shares gained 9.54% of their value over the last 52 weeks. On August 27, 2024, Mid-America Apartment Communities, Inc. (NYSE:MAA) stock closed at $160.31 per share with a market capitalization of $19.232 billion.
Diamond Hill Mid Cap Strategy stated the following regarding Mid-America Apartment Communities, Inc. (NYSE:MAA) in its Q2 2024 investor letter:
“On an individual holdings’ basis, top contributors to return in Q2 included Mid-America Apartment Communities, Inc. (NYSE:MAA), UDR and GoDaddy. Apartment real estate investment trusts (REITs) Mid-America Apartment Communities and UDR benefited in Q2 from rents and occupancy rates that remain stronger than expected — positioning both companies well as we head into peak leasing season over the summer and into the fall.”
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Mid-America Apartment Communities, Inc. (NYSE:MAA) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 23 hedge fund portfolios held Mid-America Apartment Communities, Inc. (NYSE:MAA) at the end of the second quarter which was 28 in the previous quarter. In the second quarter, Mid-America Apartment Communities, Inc. (NYSE:MAA) reported a core FFO of $2.22 per share, which was $0.03 per share above the mid-point of Q2 guidance. While we acknowledge the potential of Mid-America Apartment Communities, Inc. (NYSE:MAA) 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 Mid-America Apartment Communities, Inc. (NYSE:MAA) and shared the list of best residential real estate stocks to buy. In addition, please check out our hedge fund investor letters Q2 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.