Diamond Hill Capital, an investment management company, released its “Small Cap Fund” second-quarter 2023 investor letter. A copy of the same can be downloaded here. In the second quarter of 2023, markets were positive, and the US stocks rose over 8% (as measured by the Russell 3000 Index). The portfolio outperformed Russell 2000 Index in Q2 and returned 6.34%, bringing the YTD gains to 13.05%. Financial and consumer discretionary holdings were the source of relative strength in the quarter while the relative weakness came from consumer staples holdings and below-benchmark exposure to the information technology sector. 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 Cal-Maine Foods, Inc. (NASDAQ:CALM) in the second quarter 2023 investor letter. Headquartered in Ridgeland, Mississippi, Cal-Maine Foods, Inc. (NASDAQ:CALM) operates as a specialty shell egg company that produces, grades, packages, markets, and distributes shell eggs. On July 31, 2023, Cal-Maine Foods, Inc. (NASDAQ:CALM) stock closed at $46.19 per share. One-month return of Cal-Maine Foods, Inc. (NASDAQ:CALM) was 0.61%, and its shares lost 8.63% of their value over the last 52 weeks. Cal-Maine Foods, Inc. (NASDAQ:CALM) has a market capitalization of $2.263 billion.
Diamond Hill Small Cap Fund made the following comment about Cal-Maine Foods, Inc. (NASDAQ:CALM) in its second quarter 2023 investor letter:
“Our bottom contributors in Q2 included Ashland and Cal-Maine Foods, Inc. (NASDAQ:CALM). Cal-Maine Foods is the largest producer and marketer of shell eggs in the US. During Q2, wholesale commodities and caged egg prices normalized in the US, helped by the country having seemingly averted an avian flu outbreak — a combination which, though positive for the industry, pressured shares during the quarter. We maintain our positive outlook on Cal-Maine given the company’s significant investment in specialty and cage-free egg production, which we expect should benefit from a secular tailwind in the period ahead.”
Cal-Maine Foods, Inc. (NASDAQ:CALM) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 28 hedge fund portfolios held Cal-Maine Foods, Inc. (NASDAQ:CALM) at the end of first quarter which was 24 in the previous quarter.
We discussed Cal-Maine Foods, Inc. (NASDAQ:CALM) in another article and shared Aristotle Small Cap Equity Strategy’s views on the company. In addition, please check out our hedge fund investor letters Q2 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.