Diamond Hill Capital, an investment management company, released its “Mid Cap Strategy” fourth-quarter 2023 investor letter. A copy of the same can be downloaded here. During Q4, the markets experienced a sharp rebound, resulting in positive returns in most regions and countries. The portfolio had a better performance than the Russell Midcap Index during the Q4 period, but it underperformed for the entire calendar year. The strategy experienced relative strength in Q4, which was mainly due to the real estate holdings and exposure. These benefited from the declining interest rates environment. Holdings in industrials, financials, and consumer discretionary also added to the performance, as well as the below-benchmark exposure to energy. However, the below-benchmark exposure to technology and above-benchmark exposure to consumer staples detracted from the relative performance. The strategy delivered returns of 13.68% (net of fees) in Q4 and 9.88% (net of fees) for the full year. This compares to the Russell Midcap Index returns of 12.82% and 17.23% for Q4 and the full year, respectively. In addition, you can check the top 5 holdings of the strategy to know its best picks in 2023.
Diamond Hill Mid Cap Strategy featured stocks like Sensata Technologies Holding plc (NYSE:ST) in the fourth quarter 2023 investor letter. Headquartered in Attleboro, Massachusetts, Sensata Technologies Holding plc (NYSE:ST) is an industrial technology company that manufactures and sells sensors and sensor-rich solutions, electrical protection components and systems, and other products. On March 7, 2024, Sensata Technologies Holding plc (NYSE:ST) stock closed at $35.07 per share. One-month return of Sensata Technologies Holding plc (NYSE:ST) was 6.43%, and its shares lost 27.56% of their value over the last 52 weeks. Sensata Technologies Holding plc (NYSE:ST) has a market capitalization of $5.277 billion.
Diamond Hill Mid Cap Strategy stated the following regarding Sensata Technologies Holding plc (NYSE:ST) in its fourth quarter 2023 investor letter:
“Among our bottom contributors in Q4 were Sensata Technologies Holding plc (NYSE:ST) and BorgWarner. Sensata Technologies, an electronics component manufacturer, was pressured by United Auto Workers (UAW) strikes during the quarter, which weighed on its near-term guidance. Further, the company’s management team has executed poorly recently. However, we maintain our conviction in the long-term outlook for Sensata, which should benefit from increased use of sensors and controls in new cars.”
A frontline worker in a factory coat assembling electronic components on a production line.
Sensata Technologies Holding plc (NYSE:ST) is not on our list of 30 Most Popular Stocks Among Hedge Funds. At the end of the fourth quarter, Sensata Technologies Holding plc (NYSE:ST) was held by 35 hedge fund portfolios, up from 28 in the previous quarter, according to our database.
We discussed Sensata Technologies Holding plc (NYSE:ST) in another article and shared the list of most profitable lithium stocks to buy. 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.
