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 CarMax, Inc. (NYSE:KMX) in its Q4 2022 investor letter. Headquartered in Richmond, Virginia, CarMax, Inc. (NYSE:KMX) is a used vehicle retailer. On February 15, 2023, CarMax, Inc. (NYSE:KMX) stock closed at $75.55 per share. One-month return of CarMax, Inc. (NYSE:KMX) was 19.15%, and its shares lost 31.05% of their value over the last 52 weeks. CarMax, Inc. (NYSE:KMX) has a market capitalization of $11.939 billion.
Diamond Hill Large Cap Strategy made the following comment about CarMax, Inc. (NYSE:KMX) in its Q4 2022 investor letter:
“We also initiated positions in used car retailer CarMax, Inc. (NYSE:KMX). CarMax is the largest used vehicle retailer in the United States. The company also operates an in-house wholesale auction and a captive financing arm, both serving as unique and difficult to replicate competitive advantages. We initiated a position with the view that a challenging near-term environment for used car demand presented an opportunity to own a competitively advantaged industry leader with market share opportunity at an attractive discount to our estimate of intrinsic value. We believe the weak near-term external environment should help CarMax solidify its position given its healthy balance sheet and the possibility of a diminished competitive set.”
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CarMax, Inc. (NYSE:KMX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 25 hedge fund portfolios held CarMax, Inc. (NYSE:KMX) at the end of the third quarter, which was 28 in the previous quarter.
We discussed CarMax, Inc. (NYSE:KMX) in another article and shared Giverny Capital’s views on the company. 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.
