Diamond Hill Capital, an investment management company, released its “Mid Cap Strategy” second-quarter 2023 investor letter. A copy of the same can be downloaded here. The portfolio delivered positive results in the second quarter while modestly trailing the Russell Midcap Index. The healthcare holdings positively contributed to the relative performance while the information technology and materials holdings trailed benchmark peers. The fund returned 6.76% (net) in Q2 compared to 9.10% for the benchmark. In addition, you can check the top 5 holdings of the strategy to know its best picks in 2023.
Diamond Hill Capital Mid Cap Strategy highlighted stocks like Ferguson plc (NYSE:FERG) in the second quarter 2023 investor letter. Headquartered in Wokingham, the United Kingdom, Ferguson plc (NYSE:FERG) is a plumbing and heating products distributing company. On September 6, 2023, Ferguson plc (NYSE:FERG) stock closed at $156.07 per share. One-month return of Ferguson plc (NYSE:FERG) was -1.68%, and its shares gained 34.74% of their value over the last 52 weeks. Ferguson plc (NYSE:FERG) has a market capitalization of $31.851 billion.
Diamond Hill Capital Mid Cap Strategy made the following comment about Ferguson plc (NYSE:FERG) in its Q2 2023 investor letter:
“As markets have risen, we have been cautious about deploying cash. That said, we are still finding attractive values in the market and capitalized on attractive entry points to initiate three new positions in Q2: Ferguson plc (NYSE:FERG), SBA Communications Corp and Lear Corp.
Ferguson is a leading US distributor of plumbing, waterworks, HVAC and related products. In an industry where scale is key, Ferguson is a high-quality market leader, which has resulted in a virtuous cycle of share gains and margin expansion that remains in its early innings given a still-fragmented industry. Further, we believe any concerns about a softening macroeconomic environment and its potential impacts on Ferguson are largely reflected in the share price, giving us an attractive entry point.”
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Ferguson plc (NYSE:FERG) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 51 hedge fund portfolios held Ferguson plc (NYSE:FERG) at the end of second quarter which was 62 in the previous quarter.
We discussed Ferguson plc (NYSE:FERG) in another article and shared the list of best industrial dividend stocks to buy. 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.
