Investment management firm Diamond Hill Capital has released its Q4 2023 “Mid-Cap Strategy” investor letter. You can download a copy of the same here. During the fourth quarter, the market experienced a sharp recovery with positive gains in most regions and countries. Although this portfolio outperformed the Russell Mid-Cap Index in the fourth quarter, it underperformed over the entire calendar year. The strategy performed relatively well in the fourth quarter, primarily due to real estate holdings and exposure. These benefited from the lower interest rate environment. In addition to below-par energy exposure, holdings in industrial, financial and consumer staples also boosted results. However, relative performance declined as exposure to technology was below the benchmark and exposure to consumer staples was above the benchmark. This strategy returned 13.68% (net of fees) in the fourth quarter and 9.88% (net of fees) for the full year. By comparison, the Russell Midcap Index returned 12.82% and 17.23% for the fourth quarter and full year, respectively. Additionally, you can check out the strategy's top 5 holdings to learn about the best stocks for 2023.
Diamond Hill Midcap Strategies featured stocks like Go Daddy Inc. (NYSE:GDDY) in its Q4 2023 Investor Letter. Headquartered in Tempe, Arizona, GoDaddy Inc. (NYSE:GDDY) provides domain name registration and web hosting services. On March 7, 2024, GoDaddy Inc. (NYSE:GDDY) stock closed at $113.82 per share. GoDaddy Inc. (NYSE:GDDY)'s 1-month return is his 1.09% and the company's stock has increased his 51.80% in value over the past 52 weeks. GoDaddy Inc. (NYSE:GDDY) has a market capitalization of $16.217 billion.
Diamond Hill Mid Cap Strategies says this about GoDaddy Inc. (NYSE:GDDY) in its Q4 2023 Investor Letter:
“Despite the elevated market environment, we were able to initiate several new positions in the fourth quarter. Go Daddy Co., Ltd. (NYSE:GDDY), Envista Holdings, Insperity, and Fortune Brands Innovations. GoDaddy designs and develops cloud-based web platforms primarily for small and medium-sized businesses. The platform is an attractive business with a primarily recurring subscription-based revenue model. The company has a wide moat considering its major domain segments, which are its customers' main entry into the Internet, giving it an advantage in customer acquisition compared to its competitors. GoDaddy is increasing its ability to take advantage of this by improving its website building software and commerce capabilities, which are already leading to increased sales for its customers. As the post-COVID-19 economy continues to normalize, GoDaddy believes it is well-positioned for the next five years and initiated the position. ”
Close-up of a complex web page being developed and refined by a web development specialist.
GoDaddy Inc. (NYSE:GDDY) isn't on the list of 30 most popular stocks among hedge funds. According to our database, GoDaddy Inc. (NYSE:GDDY) was held by 42 hedge fund portfolios at the end of the fourth quarter, up from 41 at the prior quarter.
We discussed GoDaddy Inc. (NYSE:GDDY) in a separate article and shared the long-term benefits of Jeff Smith's activist goals. Additionally, for investor letters from hedge funds and other leading investors, please visit our Hedge Fund Investor Letters Q4 2023 page.
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Disclosure: None. This article was originally published on Insider Monkey.
