Diamond Hill Capital, an investment management company, released its “Small Cap Fund” third-quarter 2024 investor letter. A copy of the letter can be downloaded here. In Q3, markets contributed to strong year-to-date gains, though not without some volatility. As shown by the Russell 2000 Index, small-cap equities increased by 9%, while the broad market Russell 3000 Index increased by slightly more than 6%. Against this backdrop, the strategy trailed the index and returned 8.43% in the quarter compared to 9.27% for the Russell 2000 Index. For more information on the fund’s top picks in 2024, please check its top five holdings.
Diamond Hill Small Cap Fund highlighted stocks like Allient Inc. (NASDAQ:ALNT), in the third quarter 2024 investor letter. Allient Inc. (NASDAQ:ALNT) designs, manufactures, and distributes precision and specialty-controlled motion components and systems for various industries. The one-month return of Allient Inc. (NASDAQ:ALNT) was 0.23%, and its shares lost 31.50% of their value over the last 52 weeks. On October 30, 2024, Allient Inc. (NASDAQ:ALNT) stock closed at $17.56 per share with a market capitalization of $293.424 million.
Diamond Hill Small Cap Fund stated the following regarding Allient Inc. (NASDAQ:ALNT) in its Q3 2024 investor letter:
“Other bottom Q3 contributors included Allient Inc. (NASDAQ:ALNT), Rimini Street and Enovis. Designer and manufacturer of precision and specialty-controlled motion components and systems Allient has seen weaker demand as customers — particularly in the industrial automation and power sports and recreation industries — de-stock and delay orders. With orders not expected to normalize until mid-2025, management is taking steps to right-size the business, reducing costs while integrating recent acquisitions to accelerate margin expansion and accelerate product development.”
A robotic arm in a factory demonstrating the application of motion control technologies.
Allient Inc. (NASDAQ:ALNT)) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 17 hedge fund portfolios held Allient Inc. (NASDAQ:ALNT)) at the end of the second quarter which was 22 in the previous quarter. Allient Inc.’s (NASDAQ:ALNT) second quarter revenue was $136 million, down 7% year-over-year. While we acknowledge the potential of Allient Inc. (NASDAQ:ALNT)) 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 Allient Inc. (NASDAQ:ALNT) and shared Diamond Hill Small Cap Fund’s views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q3 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.