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 Coterra Energy Inc. (NYSE:CTRA) in the third quarter 2024 investor letter. Coterra Energy Inc. (NYSE:CTRA) is an independent oil and gas company. The one-month return of Coterra Energy Inc. (NYSE:CTRA) was 7.88%, and its shares lost 3.53% of their value over the last 52 weeks. On November 13, 2024, Coterra Energy Inc. (NYSE:CTRA) stock closed at $25.61 per share with a market capitalization of $18.865 billion.

Diamond Hill Mid Cap Strategy stated the following regarding Coterra Energy Inc. (NYSE:CTRA) in its Q3 2024 investor letter:

"Among our bottom Q3 contributors were Civitas Resources, Coterra Energy Inc. (NYSE:CTRA) Energy and Ashland. Oil and gas exploration and production companies Civitas Resources and Coterra Energy were pressured against a backdrop of weakening future global oil demand, which weighed in turn on West Texas Intermediate (WTI) and Brent crude prices and, consequently, the energy sector overall."

An oil rig pumping under the open sky of the Permian Basin.

Coterra Energy Inc. (NYSE:CTRA) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 48 hedge fund portfolios held Coterra Energy Inc. (NYSE:CTRA) at the end of the second quarter which was 40 in the previous quarter. While we acknowledge the potential of Coterra Energy Inc. (NYSE:CTRA) 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 Coterra Energy Inc. (NYSE:CTRA) and shared the list of most profitable value stocks to invest in. 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.