Diamond Hill Capital, an investment management company, released its “Large Cap Strategy” third-quarter 2024 investor letter. A copy of the letter can be downloaded here. Although there was some volatility, markets contributed to strong year-to-date gains in Q3. US stocks increased by 6%, as measured by the Russell 3000 Index, with small- and mid-cap equities accounting for most gains. This is a significant change. The strategy outperformed the Russell 1000 Index in Q3 and returned 7.84% (net) vs 6.08% for the index. In addition, you can check the top 5 holdings of the strategy to know its best picks in 2024.

Diamond Hill Large Cap Strategy highlighted stocks like NVR, Inc. (NYSE:NVR) in the third quarter 2024 investor letter. Headquartered in Reston, Virginia, NVR, Inc. (NYSE:NVR) is a US-based home builder. The one-month return of NVR, Inc. (NYSE:NVR) was -3.23%, and its shares gained 46.53% of their value over the last 52 weeks. On November 22, 2024, NVR, Inc. (NYSE:NVR) stock closed at $9,007.24 per share with a market capitalization of $27.597 billion.

Diamond Hill Large Cap Strategy stated the following regarding NVR, Inc. (NYSE:NVR) in its Q3 2024 investor letter:

"Among our top individual contributors in Q3 were Parker-Hannifin, NVR, Inc. (NYSE:NVR) and SBA Communications. Homebuilder NVR benefited from limited existing home sales, combined with still-strong new home buyer demand. Looking forward, lower interest rates may spur further demand."

A team of construction workers laboring together to build a townhome complex.

NVR, Inc. (NYSE:NVR) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 41 hedge fund portfolios held NVR, Inc. (NYSE:NVR) at the end of the third quarter which was 47 in the previous quarter. While we acknowledge the potential of NVR, Inc. (NYSE:NVR) 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.

In another article, we discussed NVR, Inc. (NYSE:NVR) and shared the list of best performing Warren Buffett stocks in 2024. In addition, please check out our hedge fund investor letters Q3 2024 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.