Diamond Hill Capital, an investment management company, released its “Large Cap Concentrated Strategy” second-quarter 2024 investor letter. A copy of the letter can be downloaded here. US stocks climbed 3% as per the Russell 3000 Index, primarily driven by a nearly 4% increase in large-cap stocks. The strategy trailed the Russell 1000 Index in Q2 and returned -2.77% (net) vs 3.57% 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 Concentrated Strategy highlighted stocks like The Home Depot, Inc. (NYSE:HD), in the second quarter 2024 investor letter. The Home Depot, Inc. (NYSE:HD) is a home improvement retailer. The one-month return of The Home Depot, Inc. (NYSE:HD) was 6.48%, and its shares gained 31.49% of their value over the last 52 weeks. On September 24, 2024, The Home Depot, Inc. (NYSE:HD) stock closed at $400.66 per share with a market capitalization of $394.715 billion.

Diamond Hill Large Cap Concentrated Strategy stated the following regarding The Home Depot, Inc. (NYSE:HD) in its Q2 2024 investor letter:

"Other bottom Q2 contributors included Caterpillar and The Home Depot, Inc. (NYSE:HD). Similarly, home improvement retailer Home Depot faces growing concerns about the consumer spending environment — particularly for home improvement expenditures. However, we believe the company’s long-term prospects and multi-year fundamental outlook are unchanged."

A home improvement store overflowing with a variety of products and supplies.

The Home Depot, Inc. (NYSE:HD) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 86 hedge fund portfolios held The Home Depot, Inc. (NYSE:HD) at the end of the second quarter which was 70 in the previous quarter. The second quarter sales of The Home Depot, Inc. (NYSE:HD) were $43.2 billion, up 0.6% from Q2 2023. While we acknowledge the potential of The Home Depot, Inc. (NYSE:HD) 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 The Home Depot, Inc. (NYSE:HD) and shared the list of best stocks for a dividend stock portfolio. In addition, please check out our hedge fund investor letters Q2 2024 page for more investor letters from hedge funds and other leading investors.