Diamond Hill Capital, an investment management company, released its “Large Cap Strategy” third-quarter 2023 investor letter. A copy of the same can be downloaded here. In the third quarter, the strategy performed roughly in line with the Russell 1000 Index. Early indications of consumer weakness among select merchants and a significant increase in interest rates impacted the portfolio in the third quarter. The strategy returned -3.04% net of fees compared to -3.15% 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 Extra Space Storage Inc. (NYSE:EXR) in the third quarter 2023 investor letter. Headquartered in Salt Lake City, Utah, Extra Space Storage Inc. (NYSE:EXR) is a self-administered and self-managed REIT. On November 20, 2023, Extra Space Storage Inc. (NYSE:EXR) stock closed at $129.48 per share. One-month return of Extra Space Storage Inc. (NYSE:EXR) was 21.61%, and its shares lost 17.39% of their value over the last 52 weeks. Extra Space Storage Inc. (NYSE:EXR) has a market capitalization of $28.29 billion.
Diamond Hill Large Cap Strategy made the following comment about Extra Space Storage Inc. (NYSE:EXR) in its Q3 2023 investor letter:
“Following a dip in share price after Q2 earnings and rising interest rates, we had an opportunity to make an initial investment in Extra Space Storage Inc. (NYSE:EXR). Despite facing near-term challenges like normalizing street rents and occupancy rates after two years of robust demand, as well as the recent merger with Life Storage, we believe EXR is well positioned for long-term growth of its intrinsic value. It boasts an impressive franchise and perhaps the industry’s best operating platform. The Life Storage acquisition broadens its real estate portfolio and presents more opportunities for growth. While the company faces some near-term headwinds, the recent sell-off created an opportunity for us to acquire shares in this high-quality franchise at a very reasonable price.”
A storage facility with boxes and shelves to store records, representing the company’s secure records storage.
Extra Space Storage Inc. (NYSE:EXR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 27 hedge fund portfolios held Extra Space Storage Inc. (NYSE:EXR) at the end of second quarter which was 23 in the previous quarter.
We discussed Extra Space Storage Inc. (NYSE:EXR) in another article and shared the list of cash-rich dividend stocks to buy. In addition, please check out our hedge fund investor letters Q3 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.
