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 WESCO International, Inc. (NYSE:WCC) in the fourth quarter 2023 investor letter. Headquartered in Pittsburgh, Pennsylvania, WESCO International, Inc. (NYSE:WCC) offers business-to-business distribution, logistics services, and supply chain solutions. On March 7, 2024, WESCO International, Inc. (NYSE:WCC) stock closed at $160.29 per share. One-month return of WESCO International, Inc. (NYSE:WCC) was -17.30%, and its shares gained 1.04% of their value over the last 52 weeks. WESCO International, Inc. (NYSE:WCC) has a market capitalization of $8.167 billion.
Diamond Hill Mid Cap Strategy stated the following regarding WESCO International, Inc. (NYSE:WCC) in its fourth quarter 2023 investor letter:
“On an individual holdings’ basis, among our top Q4 contributors were WESCO International, Inc. (NYSE:WCC) and Red Rock Resorts. Leading industrial distributor WESCO (WCC) announced three large project wins in the quarter, despite overall signs of an industry-wide cyclical slowdown. Further, WCC has generated better-than-anticipated revenue and cost synergies from its 2020 Anixter acquisition, which made WCC the largest electrical and data communications distribution company in North America. This fundamental strength has allowed the company to deleverage the balance sheet, which should help it better weather any further macroeconomic weakness.”
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WESCO International, Inc. (NYSE:WCC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. At the end of the fourth quarter, WESCO International, Inc. (NYSE:WCC) was held by 39 hedge fund portfolios, up from 35 in the previous quarter, according to our database.
We discussed WESCO International, Inc. (NYSE:WCC) in another article and shared Jim Cramer’s Latest Lightning Round: Stock Recommendations. 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.
