Diamond Hill Capital, an investment management company, released its “Long-Short Fund” third-quarter 2023 investor letter. A copy of the same can be downloaded here. The positive returns of the portfolio outperformed the Russell 1000 Index and the blended benchmark (60% Russell 1000 Index/40% Bloomberg US Treasury Bills 1-3 Month Index), both of which were negative in Q3. The short book trailed the index, providing a relative tailwind to performance. Long financial holdings were another source of relative strength. On the other hand, the fund’s long industrials and healthcare holdings were sources of relative weakness in Q3. In addition, you may look at the fund’s top 5 holdings to learn about its best picks in 2023.
Diamond Hill Long-Short Fund highlighted stocks like Alarm.com Holdings, Inc. (NASDAQ:ALRM) in the third quarter 2023 investor letter. Headquartered in Tysons, Virginia, Alarm.com Holdings, Inc. (NASDAQ:ALRM) offers a variety of Internet of Things (IoT) and solutions. On December 21, 2023, Alarm.com Holdings, Inc. (NASDAQ:ALRM) stock closed at $61.61 per share. One-month return of Alarm.com Holdings, Inc. (NASDAQ:ALRM) was 7.92%, and its shares gained 24.92% of their value over the last 52 weeks. Alarm.com Holdings, Inc. (NASDAQ:ALRM) has a market capitalization of $3.08 billion.
Diamond Hill Long-Short Fund made the following comment about Alarm.com Holdings, Inc. (NASDAQ:ALRM) in its Q3 2023 investor letter:
“We also initiated short positions in Mueller Industries, Bank of Hawaii, Alarm.com Holdings, Inc. (NASDAQ:ALRM) and Garmin in Q3. Alarm.com Holdings provides various security, monitoring and automation solutions for residential, multifamily, small business and enterprise commercial markets globally. We believe the current share price meaningfully overestimates the company’s future earnings power, while underestimating the magnitude of the challenges the company faces in growing its revenue base and expanding operating margins.”
A high-rise office building, its staff busy at work providing cybersecurity services.
Alarm.com Holdings, Inc. (NASDAQ:ALRM) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 23 hedge fund portfolios held Alarm.com Holdings, Inc. (NASDAQ:ALRM) at the end of third quarter which was 26 in the previous quarter.
We discussed Alarm.com Holdings, Inc. (NASDAQ:ALRM) in another article and shared the list of best Internet of Things (IoT) stocks to buy. In addition, please check out our hedge fund investor letters Q3 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.
