Diamond Hill Capital, an investment management company, released its “Large Cap Strategy” second-quarter 2023 investor letter. A copy of the same can be downloaded here. In the second quarter, the strategy underperformed the Russell 1000 Index. With the revival of growth and technology stocks, the strategy’s underweight exposure to the sector was a headwind on the relative performance. Technology and communication services holdings of the strategy collectively performed well but did not keep pace with those in the index. It benefited from the strength of investments in the materials and consumer discretionary sectors. The strategy returned 6.04% (net) in the quarter compared to 8.58% 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 Humana Inc. (NYSE:HUM) in the second quarter 2023 investor letter. Headquartered in Louisville, Kentucky, Humana Inc. (NYSE:HUM) is an American health and well-being company. On September 14, 2023, Humana Inc. (NYSE:HUM) stock closed at $471.57 per share. One-month return of Humana Inc. (NYSE:HUM) was -3.84%, and its shares lost 5.65% of their value over the last 52 weeks. Humana Inc. (NYSE:HUM) has a market capitalization of $58.431 billion.
Diamond Hill Large Cap Strategy made the following comment about Humana Inc. (NYSE:HUM) in its Q2 2023 investor letter:
“Our bottom contributors in Q2 included health insurance company Humana Inc. (NYSE:HUM), biopharmaceutical company Pfizer and global entertainment company Disney. Recently, Humana and one of its largest rivals discussed above trend Medicare utilization, which is putting pressure on the medical loss ratios (MLRs) of managed care companies exposed to Medicare Advantage, of which Humana is among the most exposed. Humana and other managed care organizations (MCOs) may not have fully captured these trends in their pricing bids to the Centers for Medicare & Medicaid Services (CMS) for 2024, which were due in early June. We continue to like Humana’s position as a market leader and remain investors.”
Humana Inc. (NYSE:HUM) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 70 hedge fund portfolios held Humana Inc. (NYSE:HUM) at the end of second quarter which was 68 in the previous quarter.
We discussed Humana Inc. (NYSE:HUM) in another article and shared the list of most undervalued large cap stocks to buy according to Wall Street. In addition, please check out our hedge fund investor letters Q2 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.
