Diamond Hill Capital, an investment management company, released its “Large Cap Concentrated Strategy” second-quarter 2024 investor letter. A copy of the letter can be downloaded here. US stocks climbed 3% as per the Russell 3000 Index, primarily driven by a nearly 4% increase in large-cap stocks. The strategy trailed the Russell 1000 Index in Q2 and returned -2.77% (net) vs 3.57% for the index. In addition, you can check the top 5 holdings of the strategy to know its best picks in 2024.
Diamond Hill Large Cap Concentrated Strategy highlighted stocks like Caterpillar Inc. (NYSE:CAT) in the second quarter 2024 investor letter. Caterpillar Inc. (NYSE:CAT) manufactures and sells heavy machinery. The one-month return of Caterpillar Inc. (NYSE:CAT) was 7.57%, and its shares gained 36.93% of their value over the last 52 weeks. On September 25, 2024, Caterpillar Inc. (NYSE:CAT) stock closed at $378.25 per share with a market capitalization of $183.413 billion.
Diamond Hill Large Cap Concentrated Strategy stated the following regarding Caterpillar Inc. (NYSE:CAT) in its Q2 2024 investor letter:
“Other bottom Q2 contributors included Caterpillar Inc. (NYSE:CAT) and Home Depot. Shares of heavy construction machinery manufacturer Caterpillar fell as dealer inventories have declined and the market wrestles with concerns construction activity may be decelerating.”
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Caterpillar Inc. (NYSE:CAT) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 49 hedge fund portfolios held Caterpillar Inc. (NYSE:CAT) at the end of the second quarter which was 45 in the previous quarter. Caterpillar Inc.’s (NYSE:CAT) sales and revenues declined 4% to $16.7 billion in the second quarter. While we acknowledge the potential of Caterpillar Inc. (NYSE:CAT) 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 Caterpillar Inc. (NYSE:CAT) and shared the list of best stocks for a dividend stock portfolio. Caterpillar Inc. (NYSE: CAT) contributed to the performance of the Diamond Hill Large Cap Strategy, in the previous quarter, driven by the positive US housing market. 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.