Diamond Hill Capital, an investment management company, released its “Mid Cap Strategy” second-quarter 2024 investor letter. A copy of the letter can be downloaded here. In Q2, markets saw a modest increase, providing favorable results in most regions and nations. In the quarter the strategy lagged the Russell Midcap Index. The relative weakness was mostly concentrated in the industrial holdings, which underperformed their index counterparts. Another area of relative weakness came from holdings in utilities and consumer discretionary. On the other hand, holdings in health care and materials were comparatively strong. The strategy returned -4.39% (gross) and -4.56% (net) in the quarter vs -3.35% for the index. In addition, you can check the top 5 holdings of the strategy to know its best picks in 2024.
Diamond Hill Mid Cap Strategy highlighted stocks like Parker-Hannifin Corporation (NYSE:PH), in the second quarter 2024 investor letter. Parker-Hannifin Corporation (NYSE:PH) manufactures motion and control technologies and systems for mobile, industrial, and aerospace markets. The one-month return of Parker-Hannifin Corporation (NYSE:PH) was 7.05%, and its shares gained 41.68% of their value over the last 52 weeks. On August 27, 2024, Parker-Hannifin Corporation (NYSE:PH) stock closed at $590.09 per share with a market capitalization of $75.883 billion.
Diamond Hill Mid Cap Strategy stated the following regarding Parker-Hannifin Corporation (NYSE:PH) in its Q2 2024 investor letter:
“Other bottom contributors included Parker-Hannifin Corporation (NYSE:PH), WESCO International and Regal Rexnord. Diversified industrial and aerospace manufacturer Parker-Hannifin gave back some of its Q2 gains as industrial production recovery is proceeding slower than investors had anticipated.”
A robotic arm in a factory demonstrating the application of motion control technologies.
Parker-Hannifin Corporation (NYSE:PH) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 67 hedge fund portfolios held Parker-Hannifin Corporation (NYSE:PH) at the end of the second quarter which was 63 in the previous quarter. In the June quarter, Parker-Hannifin Corporation (NYSE:PH) experienced total sales growth of nearly 2% compared to the previous year, reaching nearly $5.2 billion in sales. While we acknowledge the potential of Parker-Hannifin Corporation (NYSE:PH) 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 Parker-Hannifin Corporation (NYSE:PH) and shared the list of best dividend aristocrat stocks according to hedge funds. Parker-Hannifin Corporation (NYSE:PH) made a significant contribution to the performance of Diamond Hill Mid Cap Strategy in the previous quarter. In addition, please check out our hedge fund investor letters Q2 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.