Here’s What Makes Cal-Maine Foods (CALM) a Great Investment

Diamond Hill Capital, an investment management firm, published its “Diamond Hill Small Cap Fund” first-quarter 2022 investor letter – a copy of which can be downloaded here. Diamond Hill invests on behalf of clients through a shared commitment to its valuation-driven investment principles, long-term perspective, capacity discipline, and client alignment. Amid a rocky market environment, the portfolio’s negative returns still outpaced the Russell 2000 Index by a healthy margin in Q1.  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 Small Cap Fund mentioned Cal-Maine Foods, Inc. (NASDAQ:CALM) and explained its insights for the company. Founded in 1957, Cal-Maine Foods, Inc. (NASDAQ:CALM) is a Jackson, Mississippi-based fresh egg producer with a $2.5 billion market capitalization. Cal-Maine Foods, Inc. (NASDAQ:CALM) delivered a 42.28% return since the beginning of the year, while its 12-month returns are up by 47.75%. The stock closed at $52.63 per share on July 08, 2022. 

Here is what Diamond Hill Small Cap Fund has to say about Cal-Maine Foods, Inc. (NASDAQ:CALM) in its Q1 2022 investor letter:

“On an individual holdings’ basis, top contributors to return in Q1 included Cal-Maine Foods (NASDAQ:CALM). Fresh egg producer Cal-Maine benefited from its significant advanced investment in cage-free facilities as some states have begun their transition to providing only cage-free eggs, most namely California. Additionally, a number of competitors contended with bird flu outbreaks in their facilities, driving up egg prices and shining a light on the quality of Cal-Maine’s production capabilities.”

Our calculations show that Cal-Maine Foods, Inc. (NASDAQ:CALM) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Cal-Maine Foods, Inc. (NASDAQ:CALM) was in 20 hedge fund portfolios at the end of the first quarter of 2022, compared to 15 funds in the previous quarter. Cal-Maine Foods, Inc. (NASDAQ:CALM) delivered a -6.05% return in the past 3 months.

In June 2022, we also shared another hedge fund’s views on Cal-Maine Foods, Inc. (NASDAQ:CALM) 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.