Here’s What Makes Alphabet (GOOG) a Great Investment Choice

Diamond Hill Capital, an investment management firm, published its “Diamond Hill Large Cap Fund” first-quarter 2022 investor letter – a copy of which can be downloaded here. During a volatile quarter, Diamond Hill Large Cap Fund held up better than the Russell 1000 Index by a decent margin in Q1. After a strong rebound in 2021, global GDP growth is expected to moderate in 2022. Try to take some time looking at the fund’s top 5 holdings to be informed about their best picks for 2022.

In its Q1 2022 investor letter, Diamond Hill Large Cap Fund mentioned Alphabet Inc. (NASDAQ:GOOG) and explained its insights for the company. Founded in 2015, Alphabet Inc. (NASDAQ:GOOG) is a Mountain View, California-based multinational conglomerate company with a $1.4 trillion market capitalization. Alphabet Inc. (NASDAQ:GOOG) delivered a -22.97% return since the beginning of the year, while its 12-month returns are down by -15.10%. The stock closed at $2,228.80 per share on July 14, 2022. 

Here is what Diamond Hill Large Cap Fund has to say about Alphabet Inc. (NASDAQ:GOOG) in its Q1 2022 investor letter:

“The market environment in Q1 provided a meaningful opportunity for us to initiate positions in high-quality names that sold off indiscriminately during the quarter and were trading at prices we haven’t seen in quite some time. Alphabet (NASDAQ:GOOG) is an example. Alphabet, which owns Google and other products, sold off as the expected rise in interest rates by the Federal Reserve drove what we viewed as excessive investor pessimism. We believe these headwinds are temporary and expect Google’s search engine advertising, YouTube advertising and other initiatives to continue driving revenue growth over the long term.”

Photo by Kai Wenzel on Unsplash

Our calculations show that Alphabet Inc. (NASDAQ:GOOG) ranks 5th on our list of the 30 Most Popular Stocks Among Hedge Funds. Alphabet Inc. (NASDAQ:GOOG) was in 160 hedge fund portfolios at the end of the first quarter of 2022, compared to 158 funds in the previous quarter. Alphabet Inc. (NASDAQ:GOOG) delivered a -12.43% return in the past 3 months.

In May 2022, we also shared another hedge fund’s views on Alphabet Inc. (NASDAQ:GOOG) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q1 page.

Disclosure: None. This article is originally published at Insider Monkey.