Multiple reasons for the Outperformance of Caterpillar (CAT) in Q4

Diamond Hill Capital, an investment management company, released its “Large Cap Strategy” fourth-quarter 2022 investor letter. A copy of the same can be downloaded here. The strategy returned 10.96% net in the fourth quarter compared to a 7.24% return for the Russell 1000 Index. Holdings in the technology and consumer discretionary sectors helped the strategy to outperform in the quarter. The strategy returned better than the index during 2022 but still declined by double digits. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.

Diamond Hill Large Cap Strategy highlighted stocks like Caterpillar Inc. (NYSE:CAT) in the Q4 2022 investor letter. Headquartered in Deerfield, Illinois, Caterpillar Inc. (NYSE:CAT) is a manufacturer of construction and mining equipment, diesel and natural gas engines, and industrial gas turbines. On February 14, 2023, Caterpillar Inc. (NYSE:CAT) stock closed at $244.36 per share. One-month return of Caterpillar Inc. (NYSE:CAT) was -3.35%, and its shares gained 20.00% of their value over the last 52 weeks. Caterpillar Inc. (NYSE:CAT) has a market capitalization of $127.167 billion.

Diamond Hill Large Cap Strategy made the following comment about Caterpillar Inc. (NYSE:CAT) in its Q4 2022 investor letter:

“In the case of Caterpillar Inc. (NYSE:CAT), the company reported a better-than-expected Q3 as demand in mining, non-residential construction and energy remained healthy through the year even as recession fears grew. Caterpillar showed strong pricing power and operating efficiency in the face of supply chain constraints and labor shortages, which in turn contributed to better-than-expected share price performance.”

Caterpillar Inc. (NYSE:CAT) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 43 hedge fund portfolios held Caterpillar Inc. (NYSE:CAT)  at the end of the third quarter, which was 45 in the previous quarter.

We discussed Caterpillar Inc. (NYSE:CAT) in another article and shared the list of dividend growth stocks with the highest growth rates. In addition, please check out our hedge fund investor letters Q4 2022 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.