Diamond Hill Capital, an investment management company, released its “Large Cap Concentrated Fund” fourth-quarter 2024 investor letter. A copy of the letter can be downloaded here. Q4 saw an uneven increase in markets, capping off yet another strong year for the markets. Stocks broadly increased after the US election, but some gave up most or all of those gains before the end of the year. Against this backdrop, the portfolio trailed the Russell 1000 Index in Q4 and for the full year. The fund returned -2.00% (net) in Q4 vs 2.75% for the index. For the full year, the fund returned 14.24% compared to 24.51% 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 Large Cap Concentrated Fund emphasized stocks such as Berkshire Hathaway Inc. (NYSE:BRK-B). Incorporated in 1998, Berkshire Hathaway Inc. (NYSE:BRK-B) engages in insurance, freight rail transportation, and utility businesses. The one-month return of Berkshire Hathaway Inc. (NYSE:BRK-B) was 7.30%, and its shares gained 26.00% of their value over the last 52 weeks. On March 14, 2025, Berkshire Hathaway Inc. (NYSE:BRK-B) stock closed at $514.60 per share with a market capitalization of $1.11 trillion.
Diamond Hill Large Cap Concentrated Fund stated the following regarding Berkshire Hathaway Inc. (NYSE:BRK-B) in its Q4 2024 investor letter:
“As valuations have continued rising and the economic cycle has gotten relatively long in the tooth, we’ve thought carefully about where and how we are exposed to more cyclical stocks. As such, we initiated just three new positions in Q4: Berkshire Hathaway Inc. (NYSE:BRK-B), Aon and Waste Management.
Berkshire Hathaway is a holding company with interests in insurance, energy, industrial and consumer markets. The company has a long track record of value-added capital allocation. We added a position in the quarter as we believe the market is not properly valuing the company’s very large net cash position combined with its significantly diversified collection of high-quality businesses that are growing nicely and generate attractive returns on capital.”
A team of insurance professionals in a boardroom overlooking a city skyline.
Berkshire Hathaway Inc. (NYSE:BRK-B) is in 15th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 131 hedge fund portfolios held Berkshire Hathaway Inc. (NYSE:BRK-B) at the end of the fourth quarter which was 120 in the previous quarter. While we acknowledge the potential of Berkshire Hathaway Inc. (NYSE:BRK-B) 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 Berkshire Hathaway Inc. (NYSE:BRK-B) and shared the list of top stocks to buy according to Adage Capital Management. 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.