Diamond Hill Capital's Strategic Moves: Lululemon Athletica Inc. Takes Center Stage

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Mon, Feb 10, 2025, 11:03 AM 3 min read

Insightful Analysis of Diamond Hill Capital (Trades, Portfolio)'s Latest 13F Filing

Diamond Hill Capital (Trades, Portfolio) recently submitted its 13F filing for the fourth quarter of 2024, shedding light on its strategic investment decisions during this period. Established in 2000, Diamond Hill Capital (Trades, Portfolio) Management, Inc. is a registered investment adviser based in Columbus, Ohio. The firm is independent and publicly owned, listed on the NASDAQ under the ticker symbol DHIL, and is part of the Russell 2000 Index. Diamond Hill manages a diverse range of equity strategies, including traditional and alternative options, available through separately managed accounts, mutual funds, and private investment funds. The firm's client base spans institutions, financial intermediaries, and individuals. Diamond Hill's investment approach is primarily bottom-up, focusing on fundamental analysis of a company's profitability, market position, and other key factors, while also considering industry dynamics through top-down analysis.

Summary of New Buy

Diamond Hill Capital (Trades, Portfolio) added a total of 11 stocks, with the most significant addition being Lululemon Athletica Inc (NASDAQ:LULU). The firm acquired 967,710 shares, which now account for 1.63% of the portfolio, with a total value of $370.06 million. The second largest addition was Colgate-Palmolive Co (NYSE:CL), consisting of 3,835,863 shares, representing approximately 1.54% of the portfolio, with a total value of $348.72 million. The third largest addition was Teleflex Inc (NYSE:TFX), with 262,364 shares, accounting for 0.21% of the portfolio and a total value of $46.70 million.

Key Position Increases

Diamond Hill Capital (Trades, Portfolio) also increased stakes in a total of 51 stocks. The most notable increase was in Berkshire Hathaway Inc (NYSE:BRK.B), with an additional 664,277 shares, bringing the total to 1,568,426 shares. This adjustment represents a significant 73.47% increase in share count, a 1.33% impact on the current portfolio, and a total value of $710.94 million. The second largest increase was in Diamondback Energy Inc (NASDAQ:FANG), with an additional 658,644 shares, bringing the total to 2,817,554. This adjustment represents a significant 30.51% increase in share count, with a total value of $461.60 million.

Summary of Sold Out

Diamond Hill Capital (Trades, Portfolio) completely exited 10 holdings in the fourth quarter of 2024. Notable exits include PepsiCo Inc (NASDAQ:PEP), where the firm sold all 2,277,310 shares, resulting in a -1.57% impact on the portfolio. Another significant exit was Stryker Corp (NYSE:SYK), with the liquidation of all 503,326 shares, causing a -0.74% impact on the portfolio.

Key Position Reduces

Diamond Hill Capital (Trades, Portfolio) also reduced positions in 110 stocks. The most significant changes include a reduction in Allstate Corp (NYSE:ALL) by 1,588,049 shares, resulting in a -67.42% decrease in shares and a -1.22% impact on the portfolio. The stock traded at an average price of $194.18 during the quarter and has returned -4.77% over the past 3 months and -3.17% year-to-date. Another notable reduction was in Parker Hannifin Corp (NYSE:PH) by 402,161 shares, resulting in a -50.03% reduction in shares and a -1.03% impact on the portfolio. The stock traded at an average price of $662.71 during the quarter and has returned -2.31% over the past 3 months and 6.83% year-to-date.

Portfolio Overview

At the end of the fourth quarter of 2024, Diamond Hill Capital (Trades, Portfolio)'s portfolio included 177 stocks. The top holdings included 4.55% in American International Group Inc (NYSE:AIG), 3.27% in Abbott Laboratories (NYSE:ABT), 3.14% in Berkshire Hathaway Inc (NYSE:BRK.B), 2.99% in Bank of America Corp (NYSE:BAC), and 2.8% in ConocoPhillips (NYSE:COP).

The holdings are mainly concentrated in 11 industries: Financial Services, Industrials, Healthcare, Consumer Cyclical, Technology, Consumer Defensive, Energy, Real Estate, Basic Materials, Utilities, and Communication Services.

This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.

This article first appeared on GuruFocus.

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