Diamond Hill Capital, an investment management company, released its “Large Cap Strategy” second-quarter 2023 investor letter. A copy of the same can be downloaded here. In the second quarter, the strategy underperformed the Russell 1000 Index. With the revival of growth and technology stocks, the strategy’s underweight exposure to the sector was a headwind on the relative performance. Technology and communication services holdings of the strategy collectively performed well but did not keep pace with those in the index. It benefited from the strength of investments in the materials and consumer discretionary sectors. The strategy returned 6.04% (net) in the quarter compared to 8.58% for the index. In addition, you can check the top 5 holdings of the strategy to know its best picks in 2023.
Diamond Hill Large Cap Strategy highlighted stocks like CarMax, Inc. (NYSE:KMX) in the second quarter 2023 investor letter. Headquartered in Richmond, Virginia, CarMax, Inc. (NYSE:KMX) is a used vehicle retailer. On September 14, 2023, CarMax, Inc. (NYSE:KMX) stock closed at $83.85 per share. One-month return of CarMax, Inc. (NYSE:KMX) was 1.65%, and its shares lost 1.04% of their value over the last 52 weeks. CarMax, Inc. (NYSE:KMX) has a market capitalization of $13.266 billion.
Diamond Hill Large Cap Strategy made the following comment about CarMax, Inc. (NYSE:KMX) in its Q2 2023 investor letter:
“Among our top contributors were insurance company American International Group (AIG), auto retailer CarMax, Inc. (NYSE:KMX) and global online retailer Amazon.
CarMax’s fundamentals sequentially improved despite a challenging near-term environment for used car demand. It has been encouraging to see management’s focus on consistently profitable sales, returning to market share gains following a temporary spike in competitor discounts and taking steps to reset cost structures. We believe CarMax is a well-run industry leader and should strengthen its competitive positioning during this softer industry sales period.”
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CarMax, Inc. (NYSE:KMX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 40 hedge fund portfolios held CarMax, Inc. (NYSE:KMX) at the end of second quarter which was 38 in the previous quarter.
We discussed CarMax, Inc. (NYSE:KMX) in another article and shared Ariel Appreciation Fund’s views on the company. In addition, please check out our hedge fund investor letters Q2 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.
