Diamond Hill Capital, an investment management company, released its “Long-Short Fund” second-quarter 2024 investor letter. A copy of the letter can be downloaded here. The portfolio achieved positive returns in Q2 but trailed the Russell 1000 Index and the blended benchmark (60% Russell 1000 Index/40% Bloomberg US Treasury Bills 1-3 Month Index). The short positions didn’t perform as well as the index, giving a relative tailwind to the performance. The long positions in industrials, materials, and real estate holdings contributed to relative strength. In addition, you may look at the fund’s top 5 holdings to learn about its best picks in 2024.
Diamond Hill Long-Short Fund highlighted stocks like Lamb Weston Holdings, Inc. (NYSE:LW), in the second quarter 2024 investor letter. Lamb Weston Holdings, Inc. (NYSE:LW) produces, distributes, and markets frozen potato products. The one-month return of Lamb Weston Holdings, Inc. (NYSE:LW) was 6.07%, and its shares lost 29.04% of their value over the last 52 weeks. On September 24, 2024, Lamb Weston Holdings, Inc. (NYSE:LW) stock closed at $64.84 per share with a market capitalization of $9.316 billion.
Diamond Hill Long-Short Fund stated the following regarding Lamb Weston Holdings, Inc. (NYSE:LW) in its Q2 2024 investor letter:
“Still-rising valuations have made identifying attractively valued, long ideas increasingly challenging — though we still found a few in Q2 that we believe the market is overlooking amid its increasingly narrow focus on the mega-cap technology stocks dominating the major indices. We established new long positions in VeriSign, Ulta Beauty, Sysco Corporation and Lamb Weston Holdings, Inc. (NYSE:LW) during the quarter.
Lamb Weston is the US’s leading supplier of frozen French fries. Shares have been pressured amid a slowdown in quick-service restaurant traffic — which gave us a compelling opportunity to capitalize on what we consider a large dislocation in price and intrinsic value.”
Potatoes being sorted on a conveyor belt in a modern packing facility.
Lamb Weston Holdings, Inc. (NYSE:LW) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 39 hedge fund portfolios held Lamb Weston Holdings, Inc. (NYSE:LW) at the end of the second quarter which was 42 in the previous quarter. While we acknowledge the potential of Lamb Weston Holdings, Inc. (NYSE:LW) 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 Lamb Weston Holdings, Inc. (NYSE:LW) and shared The London Company Mid Cap Strategy’s views on the company. 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.