Should You Be Confident in ESAB Corporation (ESAB)’s Long-Term Prospects?
Diamond Hill Capital, an investment management company, released its “Mid Cap Strategy” third-quarter 2023 investor letter. A copy of the same can be downloaded here. In Q3, the portfolio underperformed the Russell Midcap Index, mainly because of industrials holdings, which underperformed relative to benchmark peers. On the other hand, technology holdings provided a comparatively strong performance during a quarter where the sector as a whole saw negative returns. The fund's below-benchmark exposure to healthcare also contributed to the relative performance in Q3. The fund returned -6.02% (net) in Q3 compared to -4.68% returns for the benchmark. In addition, you can check the top 5 holdings of the strategy to know its best picks in 2023.
Diamond Hill Mid Cap Strategy highlighted stocks like ESAB Corporation (NYSE:ESAB) in the third quarter 2023 investor letter. Headquartered in North Bethesda, Maryland, ESAB Corporation (NYSE:ESAB) is a fabrication technology and gas control solutions company. On December 5, 2023, ESAB Corporation (NYSE:ESAB) stock closed at $79.98 per share. One-month return of ESAB Corporation (NYSE:ESAB) was 6.54%, and its shares gained 70.79% of their value over the last 52 weeks. ESAB Corporation (NYSE:ESAB) has a market capitalization of $4.82 billion.
Diamond Hill Mid Cap Strategy made the following comment about ESAB Corporation (NYSE:ESAB) in its Q3 2023 investor letter:
"Among our top contributors in Q3 were American International Group (AIG) and ESAB Corporation (NYSE:ESAB). Welding and cutting equipment and consumables provider ESAB’s continuous improvement-focused EBX business system is driving improved efficiencies, and the company is diversifying into the higher-margin gas control business — developments which are driving better margins. Despite ESAB’s exposure to potential near-term economic weakness, we maintain our conviction in the long-term outlook given the company’s strong position in emerging markets and its focus on execution — factors we believe are not reflected in the current share price."
A close-up of a worker welding a steel product, showing the precision and craftsmanship.
ESAB Corporation (NYSE:ESAB) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 20 hedge fund portfolios held ESAB Corporation (NYSE:ESAB) at the end of third quarter which was 22 in the previous quarter.
We discussed ESAB Corporation (NYSE:ESAB) in another article and shared TimesSquare U.S. Small Cap Growth Strategy's views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q3 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.
