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 Humana Inc. (NYSE:HUM), in the third quarter 2024 investor letter. Humana Inc. (NYSE:HUM) offers medical and specialty insurance products. The one-month return of Humana Inc. (NYSE:HUM) was 8.67%, and its shares lost 43.57% of their value over the last 52 weeks. On November 13, 2024, Humana Inc. (NYSE:HUM) stock closed at $289.42 per share with a market capitalization of $34.849 billion.

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

"Other bottom contributors in Q3 included health insurance company Humana Inc. (NYSE:HUM) and Lancaster Colony Corporation. Since the Affordable Care Act’s passage, the Medicare Advantage industry has faced higher uncertainty and several headwinds tied to industry reimbursement and higher-than-expected health care utilization rates — both of which have pressured Humana’s share price."

A closeup of an elderly patient happily receiving a specialty healthcare product.

Humana Inc. (NYSE:HUM) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 71 hedge fund portfolios held Humana Inc. (NYSE:HUM) at the end of the second quarter which was 74 in the previous quarter. While we acknowledge the potential of Humana Inc. (NYSE:HUM) 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 Humana Inc. (NYSE:HUM) and shared the list of oversold blue-chip stocks to buy. 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.