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 Archer-Daniels-Midland Company (NYSE:ADM), in the second quarter 2024 investor letter. Archer-Daniels-Midland Company (NYSE:ADM) procures, transports, stores, and merchandises agricultural commodities, ingredients, flavors, and solutions. The one-month return of Archer-Daniels-Midland Company (NYSE:ADM) was -3.10%, and its shares lost 25.79% of their value over the last 52 weeks. On August 27, 2024, Archer-Daniels-Midland Company (NYSE:ADM) stock closed at $60.56 per share with a market capitalization of $28.956 billion.
Diamond Hill Mid Cap Strategy stated the following regarding Archer-Daniels-Midland Company (NYSE:ADM) in its Q2 2024 investor letter:
“We exited three positions in Q2, including Generac Holdings, NXP Semiconductors and Archer-Daniels-Midland Company (NYSE:ADM). Agricultural commodities and products company Archer-Daniels-Midland recently announced a nutrition-segment accounting issue — while it didn’t require a restatement of consolidated financials, we think it may be the proverbial canary in the coal mine. As we consequently lost our confidence in the management team, we exited our position.”
A wheat field at sunset, showing the company’s commitment to agricultural commodities.
Archer-Daniels-Midland Company (NYSE:ADM) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 35 hedge fund portfolios held Archer-Daniels-Midland Company (NYSE:ADM) at the end of the second quarter which was 40 in the previous quarter. While we acknowledge the potential of Archer-Daniels-Midland Company (NYSE:ADM) 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 Archer-Daniels-Midland Company (NYSE:ADM) and shared the list of largest publicly traded food companies in 2024. In the Q1 2024 commentary, Diamond Hill Mid Cap Strategy noted that Archer-Daniels-Midland Company (NYSE:ADM) experienced a significant decline during the quarter due to financial reporting issues. 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.