Diamond Hill Capital, an investment management company, released its “Long-Short Fund” fourth-quarter 2023 investor letter. A copy of the same can be downloaded here. The portfolio achieved positive returns in Q4, but it 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, but they still contributed positively to the overall performance. The long positions in financials, on the other hand, performed better than the index. However, long positions in technology and the fund’s below-benchmark exposure didn’t perform well and were the cause of underperformance in Q4. In addition, you may look at the fund’s top 5 holdings to learn about its best picks in 2023.
Diamond Hill Long-Short Fund featured stocks like Bank of Hawaii Corporation (NYSE:BOH) in the fourth quarter 2023 investor letter. Headquartered in Honolulu, Hawaii, Bank of Hawaii Corporation (NYSE:BOH) is a bank holding company for Bank of Hawaii. On April 3, 2024, Bank of Hawaii Corporation (NYSE:BOH) stock closed at $59.66 per share. One-month return of Bank of Hawaii Corporation (NYSE:BOH) was -4.54%, and its shares gained 20.04% of their value over the last 52 weeks. Bank of Hawaii Corporation (NYSE:BOH) has a market capitalization of $2.381 billion.
Diamond Hill Long-Short Fund stated the following regarding Bank of Hawaii Corporation (NYSE:BOH) in its fourth quarter 2023 investor letter:
“Among our bottom individual contributors in Q4 were our short positions in WD-40 and Bank of Hawaii Corporation (NYSE:BOH). Regional bank Bank of Hawaii benefited from Q4’s positive environment for financials as investors broadly interpreted the Fed’s November comments to indicate it is done raising rates and could pivot to rate cuts in 2024. We continue to believe the market valuation of Bank of Hawaii is generous relative to tangible book value given its relatively thin capital position combined with meaningful fixed rate assets and modest returns on tangible equity.”
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Bank of Hawaii Corporation (NYSE:BOH) is not on our list of 30 Most Popular Stocks Among Hedge Funds. At the end of the fourth quarter, Bank of Hawaii Corporation (NYSE:BOH) was held by 13 hedge fund portfolios, up from 11 in the previous quarter, according to our database.
We discussed Bank of Hawaii Corporation (NYSE:BOH) in another article and shared Diamond Hill Long-Short Fund’s views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q4 2023 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.
