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 Parker-Hannifin Corporation (NYSE:PH), in the third quarter 2024 investor letter. Parker-Hannifin Corporation (NYSE:PH) manufactures motion and control technologies and systems for mobile, industrial, and aerospace markets. The one-month return of Parker-Hannifin Corporation (NYSE:PH) was 9.70%, and its shares gained 62.98% of their value over the last 52 weeks. On November 12, 2024, Parker-Hannifin Corporation (NYSE:PH) stock closed at $699.32 per share with a market capitalization of $90.016 billion.

Diamond Hill Mid Cap Strategy stated the following regarding Parker-Hannifin Corporation (NYSE:PH) in its Q3 2024 investor letter:

"Other top Q3 contributors included Parker-Hannifin Corporation (NYSE:PH) and Ciena Corporation. Diversified industrial and aerospace manufacturer Parker-Hannifin is capitalizing on strength in its aerospace business to drive better-than-expected results against a challenging macroeconomic backdrop that has weighed on peers’ results."

A robotic arm in a factory demonstrating the application of motion control technologies.

Parker-Hannifin Corporation (NYSE:PH) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 67 hedge fund portfolios held Parker-Hannifin Corporation (NYSE:PH) at the end of the second quarter which was 63 in the previous quarter. In the September quarter, Parker-Hannifin Corporation (NYSE:PH) experienced total organic sales growth of 1.4% compared to the previous year, reaching $4.9 billion in sales. While we acknowledge the potential of Parker-Hannifin Corporation (NYSE:PH) 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 Parker-Hannifin Corporation (NYSE:PH) and shared Madison Investors Fund's views on the company. In addition, please check out our hedge fund investor letters Q3 2024 page for more investor letters from hedge funds and other leading investors.

READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks.

Disclosure: None. This article is originally published at Insider Monkey.