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 Webster Financial Corporation (NYSE:WBS) in the fourth quarter 2023 investor letter. Headquartered in Stamford, Connecticut, Webster Financial Corporation (NYSE:WBS) is a bank holding company for Webster Bank, National Association. On March 7, 2024, Webster Financial Corporation (NYSE:WBS) stock closed at $48.82 per share. One-month return of Webster Financial Corporation (NYSE:WBS) was 4.45%, and its shares gained 13.46% of their value over the last 52 weeks. Webster Financial Corporation (NYSE:WBS) has a market capitalization of $8.385 billion.
Diamond Hill Mid Cap Strategy stated the following regarding Webster Financial Corporation (NYSE:WBS) in its fourth quarter 2023 investor letter:
“Other top contributors in Q4 included CubeSmart, Webster Financial Corporation (NYSE:WBS) and Parker-Hannifin. Similarly, HSA-focused bank Webster Financial rose alongside financials in the wake of the Fed’s November meeting, which investors broadly interpreted to signal an end to rate hikes and a potential pivot to cuts sometime in 2024.”
A business owner discussing commercial business loans with a bank representative.
Webster Financial Corporation (NYSE:WBS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. At the end of the fourth quarter, Webster Financial Corporation (NYSE:WBS) was held by 41 hedge fund portfolios, up from 33 in the previous quarter, according to our database.
We discussed Webster Financial Corporation (NYSE:WBS) in another article and shared the list of best bank stocks to invest in for long term. In addition, please check out our hedge fund investor letters Q4 2023 page for more investor letters from hedge funds and other leading investors.
Suggested Articles:
- 10 Affordable Alternatives to Airpods
- 15 Most Historical Countries to Visit in the World
- 15 Cities with the Worst Public Transportation in the US
Disclosure: None. This article is originally published at Insider Monkey.
