The Allstate Corporation (ALL) Benefitted from Improved Pricing Power
Diamond Hill Capital, an investment management company, released its “Large Cap Strategy” fourth-quarter 2023 investor letter. A copy of the same can be downloaded here. The strategy trailed the Russell 1000 Index for Q4 and underperformed for the calendar year. In Q4, both the fund’s below-benchmark weighting and individual holdings underperformed index peers, resulting in relative weakness in the technology exposure for both the full year and the quarter. In addition, overweight exposure to the weak energy sector detracted from the relative results, along with healthcare holdings. Financial holdings and over-benchmark allocation boosted performance. Positive stock picks in real estate and consumer staples sectors also contributed. The strategy returned 11.39% (net) in Q4 compared to 11.96% for the Russell 1000 Index. For the full year, the strategy returned 13.68% (net) compared to a 26.53% return for the index. In addition, you can check the top 5 holdings of the strategy to know its best picks in 2023.
Diamond Hill Large Cap Strategy featured stocks like The Allstate Corporation (NYSE:ALL) in the Q4 2023 investor letter. Headquartered in Northbrook, Illinois, The Allstate Corporation (NYSE:ALL) is an insurance company that provides property and casualty, and other insurance products. On February 28, 2024, The Allstate Corporation (NYSE:ALL) stock closed at $160.59 per share. One-month return of The Allstate Corporation (NYSE:ALL) was 2.82%, and its shares gained 27.17% of their value over the last 52 weeks. The Allstate Corporation (NYSE:ALL) has a market capitalization of $42.246 billion.
Diamond Hill Large Cap Strategy stated the following regarding The Allstate Corporation (NYSE:ALL) in its fourth quarter 2023 investor letter:
"Other top contributors in Q4 included The Allstate Corporation (NYSE:ALL), American International Group (AIG) and Target. Allstate, one of the US’s largest providers of auto and homeowners’ insurance, is benefiting from improved pricing power in both of its primary insurance lines. Further, the company’s underwriting results have rebounded from depressed levels, contributing to better-than-anticipated earnings."
The Allstate Corporation (NYSE:ALL) is not on our list of 30 Most Popular Stocks Among Hedge Funds. At the end of the fourth quarter, The Allstate Corporation (NYSE:ALL) was held by 51 hedge fund portfolios, up from 35 in the previous quarter, according to our database.
We discussed The Allstate Corporation (NYSE:ALL) in another article and shared the list of best car insurance in Massachusetts for 2024. In addition, please check out our hedge fund investor letters Q4 2023 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.
