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Diamond Hill Capital, an investment management company, released its “Mid Cap Strategy” third-quarter 2024 investor letter. A copy of the letter can be downloaded here. The market added robust year-to-date gains in Q3. The portfolio underperformed the Russell Midcap Index in the quarter. The relative weakness is concentrated primarily among materials holdings. The strategy returned 8.53% (gross) and 8.34% (net) in the quarter compared to 9.21% for the index. In addition, you can check the top 5 holdings of the strategy to know its best picks in 2024.
Diamond Hill Mid Cap Strategy highlighted stocks like Lancaster Colony Corporation (NASDAQ:LANC) in the third quarter 2024 investor letter. Established in 1961, Lancaster Colony Corporation (NASDAQ:LANC) manufactures and markets specialty food products for the retail and food service channels. The one-month return of Lancaster Colony Corporation (NASDAQ:LANC) was 5.30%, and its shares gained 13.09% of their value over the last 52 weeks. On November 13, 2024, Lancaster Colony Corporation (NASDAQ:LANC) stock closed at $187.88 per share with a market capitalization of $5.179 billion.
Diamond Hill Mid Cap Strategy stated the following regarding Lancaster Colony Corporation (NASDAQ:LANC) in its Q3 2024 investor letter:
"Other bottom contributors in Q3 included health insurance company Humana and Lancaster Colony Corporation (NASDAQ:LANC). Packaged food products manufacturer Lancaster Colony exited its Flatout business (including wraps, pizza crusts and other products) during the quarter, which weighed on results. However, we think the business remains well-positioned in the long term, and we believe it has been making good progress on the licensed sauces front — most recently via new partnerships with Subway and Texas Roadhouse."
A retired farmer in a wheat field, pleased with the quality of a Food products product he purchased from the company.
Lancaster Colony Corporation (NASDAQ:LANC) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 24 hedge fund portfolios held Lancaster Colony Corporation (NASDAQ:LANC) at the end of the second quarter which was 19 in the previous quarter. In the September quarter, Lancaster Colony Corporation's (NASDAQ:LANC) consolidated net sales increased 1.1% to $467 million. While we acknowledge the potential of Lancaster Colony Corporation (NASDAQ:LANC) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.