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 Teledyne Technologies Incorporated (NYSE:TDY). Teledyne Technologies Incorporated (NYSE:TDY) offers enabling technologies for industrial growth markets. The one-month return of Teledyne Technologies Incorporated (NYSE:TDY) was 0.08%, and its shares gained 17.98% of their value over the last 52 weeks. On March 17, 2025, Teledyne Technologies Incorporated (NYSE:TDY) stock closed at $497.30 per share with a market capitalization of $23.292 billion.
Diamond Hill Mid Cap Strategy stated the following regarding Teledyne Technologies Incorporated (NYSE:TDY) 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 a number of new positions in Q4, including ICON, Informatica, Teledyne Technologies Incorporated (NYSE:TDY), LPL Financial Holdings, Teleflex Incorporated and Solventum Corporation.
Teledyne Technologies is a diversified industrial technology provider focused on specialty sensors and instrumentation products. The company has a long history of creating shareholder value via margin improvement and M&A activity. However, some lingering investor skepticism around Teledyne’s acquisition of FLIR Systems, its largest and priciest acquisition to date, has weighed on the valuation some, making it attractive relative to its high-quality industrials peers. Though the acquisition has taken longer than some anticipated to generate synergies, we believe this is partly attributable to near-term macroeconomic related weakness and find the FLIR deal a successful one. Given our confidence in the long-term outlook for Teledyne, we capitalized on the attractive valuation to initiate a position.”
A technician in a lab coat calibrating advanced electronic components.
Teledyne Technologies Incorporated (NYSE:TDY) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 45 hedge fund portfolios held Teledyne Technologies Incorporated (NYSE:TDY) at the end of the fourth quarter compared to 39 in the third quarter. While we acknowledge the potential of Teledyne Technologies Incorporated (NYSE:TDY) 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 Teledyne Technologies Incorporated (NYSE:TDY) and shared the list of best scientific instruments stocks to buy. In Q4 2024, Optimist Fund took a position in Teledyne Technologies Incorporated (NYSE:TDY), impressed by its outstanding track record. 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.