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 Teleflex Incorporated (NYSE:TFX). Teleflex Incorporated (NYSE:TFX) engages in the development and manufacturing of single-use medical devices for diagnostic and therapeutic procedures. The one-month return Teleflex Incorporated (NYSE:TFX) was -17.47%, and its shares lost 35.92% of their value over the last 52 weeks. On March 17, 2025, Teleflex Incorporated (NYSE:TFX) stock closed at $139.75 per share with a market capitalization of $6.48 billion.
Diamond Hill Mid Cap Strategy stated the following regarding Teleflex Incorporated (NYSE:TFX) 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, LPL Financial Holdings, Teleflex Incorporated and Solventum Corporation.
Medical devices manufacturer Teleflex Incorporated (NYSE:TFX) sells a diverse portfolio of medical products, making it a cash-generative business with a healthy balance sheet. As shares were trading below our estimate of its intrinsic value, we initiated a position during the quarter.”
A doctor in their office, consulting with a patient about the benefits of the company’s interventional urology products.
Teleflex Incorporated (NYSE:TFX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 36 hedge fund portfolios held Teleflex Incorporated (NYSE:TFX) at the end of the fourth quarter compared to 34 in the third quarter. In the fourth quarter Teleflex Incorporated (NYSE:TFX) generated $795.4 million in revenues, up 2.8% year-over-year on a GAAP basis and an increase of 3.2% on an adjusted constant currency basis. While we acknowledge the potential of Teleflex Incorporated (NYSE:TFX) 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 Teleflex Incorporated (NYSE:TFX) and shared Conestoga Capital Advisors’ views on the company. 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.