Diamond Hill Capital, an investment management company, released its “Mid Cap Strategy” fourth-quarter 2024 investor letter. A copy of the letter can be downloaded here. Q4 witnessed an uneven increase in markets, capping off yet another positive year for the markets. In general, equities rose after the US election, but some gave up most or all of those gains by the end of the year. The portfolio trailed the Russell Midcap Index in Q4 and for the full year. The strategy returned -2.18% (gross) and -2.35% (net) in the quarter compared to 0.62% for the index. For the full year, the strategy returned 11.39% (gross) and 10.61% (net) compared to 15.34% return for the index. In addition, you can check the top 5 holdings of the strategy to know its best picks in 2024.
In its fourth quarter 2024 investor letter, Diamond Hill Mid Cap Strategy emphasized stocks such as WESCO International, Inc. (NYSE:WCC). WESCO International, Inc. (NYSE:WCC) offers business-to-business distribution, logistics services, and supply chain solutions. The one-month return of WESCO International, Inc. (NYSE:WCC) was -18.18%, and its shares lost 0.37% of their value over the last 52 weeks. On March 17, 2025, WESCO International, Inc. (NYSE:WCC) stock closed at $163.59 per share with a market capitalization of $7.983 billion.
Diamond Hill Mid Cap Strategy stated the following regarding WESCO International, Inc. (NYSE:WCC) in its Q4 2024 investor letter:
“On an individual holdings’ basis, top contributors to return in Q4 included Ciena and WESCO International, Inc. (NYSE:WCC). Industrial distributor WESCO is benefiting from strong demand in its data center business. Though the company’s leverage level remains somewhat elevated, leaving it potentially vulnerable to near-term macroeconomic weakness, its solid free cash flow generation should allow it to deleverage over time. Though shares received a nice boost in the quarter, we believe the market still undervalues WESCO’s ability to leverage its significant scale advantage to take share and improve margins. We also anticipate it will benefit from several secular tailwinds in the period ahead.”
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WESCO International, Inc. (NYSE:WCC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 62 hedge fund portfolios held WESCO International, Inc. (NYSE:WCC) at the end of the fourth quarter compared to 50 in the third quarter. While we acknowledge the potential of WESCO International, Inc. (NYSE:WCC) 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 WESCO International, Inc. (NYSE:WCC) and shared the list of best stocks to buy according to Seth Klarman. In addition, please check out our hedge fund investor letters Q4 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.