Diamond Hill Capital, an investment management company, released its “Large Cap Strategy” third-quarter 2023 investor letter. A copy of the same can be downloaded here. In the third quarter, the strategy performed roughly in line with the Russell 1000 Index. Early indications of consumer weakness among select merchants and a significant increase in interest rates impacted the portfolio in the third quarter. The strategy returned -3.04% net of fees compared to -3.15% for the index. In addition, you can check the top 5 holdings of the strategy to know its best picks in 2023.
Diamond Hill Large Cap Strategy highlighted stocks like Caterpillar Inc. (NYSE:CAT) in the third quarter 2023 investor letter. Headquartered in Irving, Texas, Caterpillar Inc. (NYSE:CAT) is a manufacturer of construction and mining equipment, off-highway diesel and natural gas engines, diesel-electric locomotives and industrial gas turbines. On November 20, 2023, Caterpillar Inc. (NYSE:CAT) stock closed at $250.45 per share. One-month return of Caterpillar Inc. (NYSE:CAT) was 0.36%, and its shares gained 5.56% of their value over the last 52 weeks. Caterpillar Inc. (NYSE:CAT) has a market capitalization of $127.5 billion.
Diamond Hill Large Cap Strategy made the following comment about Caterpillar Inc. (NYSE:CAT) in its Q3 2023 investor letter:
“Caterpillar Inc. (NYSE:CAT), the world’s leading manufacturer of construction and mining equipment, also performed well this quarter. Caterpillar has managed to leverage increased capital investment from various end markets, contributing to better than expected fiscal results for Q2. The company is poised to be one of the largest beneficiaries of several government funding initiatives, including the IRA (Inflation Reduction Act) bill, CHIPS Act and infrastructure bill. These measures are expected to support construction spending for several years, providing a robust backdrop for Caterpillar’s continued growth.”
Caterpillar Inc. (NYSE:CAT) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 50 hedge fund portfolios held Caterpillar Inc. (NYSE:CAT) at the end of second quarter which was 52 in the previous quarter.
We discussed Caterpillar Inc. (NYSE:CAT) in another article and shared the list of best-performing Dow stocks in 2023. 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.