Strong Balance Sheet Improved Mr. Cooper Group (COOP)’s Market Position

Diamond Hill Capital, an investment management company, released its “Small Cap Fund” second-quarter 2023 investor letter. A copy of the same can be downloaded here. In the second quarter of 2023, markets were positive, and the US stocks rose over 8% (as measured by the Russell 3000 Index). The portfolio outperformed Russell 2000 Index in Q2 and returned 6.34%, bringing the YTD gains to 13.05%. Financial and consumer discretionary holdings were the source of relative strength in the quarter while the relative weakness came from consumer staples holdings and below-benchmark exposure to the information technology sector. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.

Diamond Hill Small Cap Fund highlighted stocks like Mr. Cooper Group Inc. (NASDAQ:COOP) in the second quarter 2023 investor letter. Headquartered in Coppell, Texas, Mr. Cooper Group Inc. (NASDAQ:COOP) provides residential loan services. On July 31, 2023, Mr. Cooper Group Inc. (NASDAQ:COOP) stock closed at $57.97 per share. One-month return of Mr. Cooper Group Inc. (NASDAQ:COOP) was 13.71%, and its shares gained 31.81% of their value over the last 52 weeks. Mr. Cooper Group Inc. (NASDAQ:COOP) has a market capitalization of $3.945 billion.

Diamond Hill Small Cap Fund  made the following comment about Mr. Cooper Group Inc. (NASDAQ:COOP) in its second quarter 2023 investor letter:

“Other top contributors included Allegiant Travel, Bank OZK and Mr. Cooper Group Inc. (NASDAQ:COOP). Mr. Cooper Group, the largest non-bank residential mortgage services in the US, continues executing at a high level in a challenging mortgage environment and is using its strong balance sheet to enhance its market position.”

Mr. Cooper Group Inc. (NASDAQ:COOP) is not on our list of 30 Most Popular Stocks Among Hedge Funds.  As per our database, 29 hedge fund portfolios held Mr. Cooper Group Inc. (NASDAQ:COOP) at the end of first quarter which was 30 in the previous quarter.

We discussed Mr. Cooper Group Inc. (NASDAQ:COOP) in another article and shared Bernzott Capital Advisors’ views on the company. 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.