Diamond Hill Capital, an investment management company, released its “Large Cap Strategy” third-quarter 2024 investor letter. A copy of the letter can be downloaded here. Although there was some volatility, markets contributed to strong year-to-date gains in Q3. US stocks increased by 6%, as measured by the Russell 3000 Index, with small- and mid-cap equities accounting for most gains. This is a significant change. The strategy outperformed the Russell 1000 Index in Q3 and returned 7.84% (net) vs 6.08% 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 Strategy highlighted stocks like Caterpillar Inc. (NYSE:CAT) in the third quarter 2024 investor letter. Caterpillar Inc. (NYSE:CAT) manufactures and sells heavy machinery. The one-month return of Caterpillar Inc. (NYSE:CAT) was 1.76%, and its shares gained 60.67% of their value over the last 52 weeks. On November 22, 2024, Caterpillar Inc. (NYSE:CAT) stock closed at $397.49 per share with a market capitalization of $191.909 billion.
Diamond Hill Large Cap Strategy stated the following regarding Caterpillar Inc. (NYSE:CAT) in its Q3 2024 investor letter:
“Other top Q3 contributors included HCA Healthcare and Caterpillar Inc. (NYSE:CAT). Heavy construction machinery manufacturer Caterpillar has held up better than industry peers against a challenging macroeconomic backdrop and a generally slowing construction environment.”
A vast construction site with heavy machinery, materials, and workers, showcasing the company’s global presence.
Caterpillar Inc. (NYSE:CAT) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 50 hedge fund portfolios held Caterpillar Inc. (NYSE:CAT) at the end of the third quarter which was 49 in the previous 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 industrial machinery stocks to buy. Caterpillar Inc. (NYSE:CAT) detracted from the performance of Diamond Hill Large Cap Concentrated Strategy in the previous quarter. In addition, please check out our hedge fund investor letters Q3 2024 page for more investor letters from hedge funds and other leading investors.
READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks.
Disclosure: None. This article is originally published at Insider Monkey.