What Makes Core Molding Technologies (CMT) a Prospective Investment?
Diamond Hill Capital, an investment management company, released its “Small Cap Fund” fourth-quarter 2023 investor letter. A copy of the same can be downloaded here. During Q4 2023, the strategy returned 15.49% compared to 14.03% for the Russell 2000 Index. The relative outperformance in Q4 came from the strong performance of Financials and consumer discretionary holdings while industrials and healthcare holdings detracted. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Diamond Hill Small Cap Fund featured stocks such as Core Molding Technologies, Inc. (AMEX:CMT) in the fourth quarter 2023 investor letter. Headquartered in Columbus, Ohio, Core Molding Technologies, Inc. (AMEX:CMT) manufactures sheet molding compounds and molding of fiberglass-reinforced plastics. On February 5, 2024, Core Molding Technologies, Inc. (AMEX:CMT) stock closed at $16.60 per share. One-month return of Core Molding Technologies, Inc. (AMEX:CMT) was -3.66%, and its shares gained 6.21% of their value over the last 52 weeks. Core Molding Technologies, Inc. (AMEX:CMT) has a market capitalization of $143.679 million.
Diamond Hill Small Cap Fund stated the following regarding Core Molding Technologies, Inc. (AMEX:CMT) in its fourth quarter 2023 investor letter:
"We initiated two new positions in the quarter: Mama’s Creations and Core Molding Technologies, Inc. (AMEX:CMT). Core Molding Technologies (CMT) produces and sells molded products for various markets, including medium and heavy-duty trucks, automobiles, power sports, construction and agriculture, building products and other commercial markets. The company’s CEO, who joined in late-2018 to help effect a turnaround and grow and diversify the business, has executed well thus far. CMT operates in an industry with high barriers to entry given the nature of the equipment involved — which has contributed to its ability to establish itself as a market leader with relatively few competitors. Further, the addressable markets are large with room for CMT to take wallet share among its existing long-term customers. As customers increasingly focus on technical solutions that utilize innovations in composite materials and novel applications, we expect CMT to benefit from increased demand. The management team has effectively managed the company’s cash flow-generation and reinvestment opportunities, and the balance sheet is in good shape. We capitalized on an attractive valuation to initiate a position in a company which we believe has a positive outlook over the period ahead."
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Core Molding Technologies, Inc. (AMEX:CMT) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 7 hedge fund portfolios held Core Molding Technologies, Inc. (AMEX:CMT) at the end of third quarter which was 6 in the previous quarter. 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.
