Diamond Hill Capital, an investment management company, released its “Small Cap Fund” third-quarter 2023 investor letter. A copy of the same can be downloaded here. During Q3 2023, US stocks fell by 3%, bringing YTD gains to around 12% as measured by the Russell 3000 Index. The portfolio trailed the Russell 2000 Index in Q3 and returned -5.62% bringing the YTD returns to 6.70%. Relative weakness in consumer discretionary holdings, industrials, and technology impacted the performance in the quarter. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Diamond Hill Small Cap Fund highlighted stocks like Ducommun Incorporated (NYSE:DCO) in the third quarter 2023 investor letter. Headquartered in Santa Ana, California, Ducommun Incorporated (NYSE:DCO) provides engineering and manufacturing services to the aerospace, defense, industrial, and medical industries. On November 8, 2023, Ducommun Incorporated (NYSE:DCO) stock closed at $49.62 per share. One-month return of Ducommun Incorporated (NYSE:DCO) was 7.99%, and its shares lost 2.17% of their value over the last 52 weeks. Ducommun Incorporated (NYSE:DCO) has a market capitalization of $722.944 million.
Diamond Hill Small Cap Fund made the following comment about Ducommun Incorporated (NYSE:DCO) in its Q3 2023 investor letter:
“Ducommun Incorporated (NYSE:DCO) is a critical Tier 1 and Tier 2 supplier of advanced material aerostructures and electrical components to the defense and commercial markets. Via targeted acquisitions, the company is increasing its higher-margin engineered and aftermarket business. Simultaneously, management is working to improve organic margins by reorganizing its operational and physical footprint. We are particularly attracted to Ducommun’s electronic systems business, which engineers, manufactures, fabricates and integrates a wide range of high-performance components and systems for commercial and military aircraft, missile systems, ships and radars. While we believe the market sees Ducommun as a commercial aerospace stock, we believe management’s focus on the defense side of the company’s business is bearing fruit, and we believe it will capitalize on a productive M&A strategy moving forward.”
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Ducommun Incorporated (NYSE:DCO) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 17 hedge fund portfolios held Ducommun Incorporated (NYSE:DCO) at the end of second quarter which was 13 in the previous quarter.
We discussed Ducommun Incorporated (NYSE:DCO) in another article and shared Cove Street Capital’s views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q3 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.
