Here’s Why Diamond Hill Capital Still Owns ESAB Corp. (ESAB) Shares

Diamond Hill Capital Management, an investment advisor, released its “Small Cap Fund” second quarter 2022 investor letter. A copy of the same can be downloaded here. The second quarter was challenging for US stocks and the Russell 2000 Index fell by more than 17%. The volatile market condition affected the fund’s portfolio performance; however, the fund performed better compared to the Russell 2000 Index. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.

In the second quarter investor letter, Diamond Hill Capital Management discussed stocks like ESAB Corporation (NYSE:ESAB). Headquartered in Wilmington, Delaware, ESAB Corporation (NYSE:ESAB) is a manufacturer and supplier of welding and cutting equipment. On September 2, 2022, ESAB Corporation (NYSE:ESAB) stock closed at $39.91 per share. One-month return of ESAB Corporation (NYSE:ESAB) was -10.52% and its shares lost 18.85% of their value in 3 months. ESAB Corporation (NYSE:ESAB) has a market capitalization of $2.396 billion.

Here is what Diamond Hill Capital Management specifically said about ESAB Corporation (NYSE:ESAB):

“ESAB Corporation (NYSE:ESAB) and Enovis Corporation are both new names in the portfolio, but familiar to us through our prior holding in Colfax Corporation, a provider of orthopedic solutions including braces and reconstructive joint products as well as welding equipment and supplies. Early in Q2, Colfax completed a planned split — its fabrication technology business became ESAB and the medical technology business reorganized as Enovis. ESAB has removed Russia from its guidance for 2022, and we continue to hold both, believing the two new companies are in an excellent position to leverage their business systems to continuously improve operations over time and engage in value-creating acquisitions in their respective industries.”

ESAB Corporation (NYSE:ESAB) is not on the list of 30 Most Popular Stocks Among Hedge Funds. ESAB Corporation (NYSE:ESAB) was held by 19 hedge fund portfolios at the end of the second quarter compared to 0 in the previous quarter.

We discussed ESAB Corporation (NYSE:ESAB) in another article and shared Diamond Hill Capital’s views on the company. You can check out our hedge fund investor letters Q2 2022 page for more investor letters from hedge funds and other prominent investors.

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