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8 Undervalued Stocks Diamond Hill Capital Continues to Buy

Diamond Hill Capital (Trades, Portfolio), which provides investment management services, bought shares of the following stocks in both the second and third quarters.


Baidu Inc.

The guru increased its Baidu Inc. (BIDU) position by 52.32% in the second quarter and then raised it by 31.86% in the third quarter. The stock has a weight of 0.01% in the portfolio.

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The Chinese internet search engine has a market cap of $42.55 billion. Its revenue of $15.47 billion has grown at an average rate of 20.9% per annum over the last five years.

Dodge & Cox is the largest guru shareholder of the company with 2.37% of outstanding shares, followed by Sarah Ketterer (Trades, Portfolio)'s Causeway Capital Management with 1.52% and David Herro (Trades, Portfolio) with 1.01%.

Cal-Maine Foods Inc.

The firm increased its Cal-Maine Foods Inc. (NASDAQ:CALM) stake by 24.77% in the second quarter and raised it 19.32% in the third quarter. The stock has a weight of 0.44% in the portfolio.

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The shell eggs provider has a market cap of $2.07 billion. Its revenue of $1.26 billion has fallen at an average annual rate of 2.90% over the last five years.

The company's largest guru shareholder is Diamond Hill Capital (Trades, Portfolio) with 4.26% of outstanding shares, followed by Jim Simons (Trades, Portfolio)' Renaissance Technologies with 2.29% and Chuck Royce (Trades, Portfolio) with 1.46%.

Deere & Co.

The fund boosted its Deere & Co. (DE) holding by 51.11% in the second quarter and by 20.64% in the third quarter. The stock has a total weight of 0.02% in the portfolio.

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The manufacturer of agricultural, turf, construction and forestry machinery has a market cap of $55.54 billion. Its revenue of $38.44 billion has risen 1.50% on average every year over the last five years.

Al Gore (Trades, Portfolio) is the largest guru shareholder of the company with 1.50% of outstanding shares, followed by PRIMECAP Management (Trades, Portfolio) with 0.79% and Tom Gayner (Trades, Portfolio)'s Markel Corp. with 0.32%.

Fastenal Co.

In the second quarter, the guru boosted its Fastenal Co. (FAST) holding by 76.08% and then by 32.06% in the third quarter. The stock has a weight of 0.01% in the portfolio.

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The company, which operates in the industrial distribution industry, has a market cap of $21.16 billion. Its revenue of $5.28 billion has grown 8.30% on average every year over the last five years.

The largest guru shareholder of the company is Mairs and Power (Trades, Portfolio) with 0.89% of outstanding shares, followed by David Rolfe (Trades, Portfolio) with 0.34%, Pioneer Investments (Trades, Portfolio) with 0.27% and Ron Baron (Trades, Portfolio) with 0.17%.

Franklin Resources Inc.

The firm bolstered its Franklin Resources Inc. (BEN) position by 40.55% in the second quarter and by 14.97% in the third quarter.

The investment services provider has a market cap of $13.97 billion. Its revenue of $5.77 billion has fallen at an average annual rate of 2.80% over the last five years.

The largest guru shareholder of the company is Abrams Capital Management's David Abrams (Trades, Portfolio) with 1.94% of outstanding shares, followed by T Rowe Price Equity Income Fund (Trades, Portfolio) with 0.80%, Michael Price (Trades, Portfolio) with 0.05% and Bernard Horn (Trades, Portfolio) with 0.04%.

KKR & Co Inc.

The guru raised its KKR & Co Inc. (KKR) stake by 50.43% in the second quarter and by 23.92% in the third quarter. The stock has a weight of 1.28% in the portfolio.

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The company, which operates in the asset management industry, has a market cap of $24.90 billion. Its revenue of $20.97 billion has grown 20% on average every year over the last five years.

The largest guru shareholder of the company is Jeff Ubben (Trades, Portfolio)'s ValueAct Holdings LP with 6.02% of outstanding shares, followed by Chuck Akre (Trades, Portfolio) with 1.51% and Richard Pzena (Trades, Portfolio)'s Pzena Investment Management with 1.01%.

Molson Coors Brewing Co.

The firm boosted the Molson Coors Brewing Co. (TAP) position by 97.12% in the second quarter and by 8.84% in the third quarter. The stock has a weight of 0.36% in the portfolio.

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The American brewer has a market cap of $11.42 billion. Its revenue of $10.51 billion has grown at an average annual rate of 20.60% over the last five years.

The largest guru shareholder of the company is Dodge & Cox with 6.44% of outstanding shares, followed by John Rogers (Trades, Portfolio) with 0.83%, Pioneer Investments (Trades, Portfolio) with 0.09% and Jeff Auxier (Trades, Portfolio) with 0.09%.

WESCO International Inc.

In the second quarter, the guru boosted the WESCO International Inc. (WCC) holding by 6,102.83%, and in the thrid quarter, it boosted the position by 138.16%. The stock has a weight of 0.33% in the portfolio.

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The company, which operates in the industrial distribution industry, has a market cap of $2.28 billion. Its revenue of $8.27 billion has grown 3.50% on average every year over the last five years.

Another notable guru shareholder of the company is Simons' firm with 0.97% of outstanding shares, followed by Robert Olstein (Trades, Portfolio) with 0.56% and Horn with 0.24%.

Disclosure: I do not own any stocks mentioned.

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This article first appeared on GuruFocus.