Here’s Why Bank of America Corporation (BAC) Outperformed in Q4
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 Bank of America Corporation (NYSE:BAC) in the fourth quarter 2023 investor letter. Headquartered in Charlotte, North Carolina, Bank of America Corporation (NYSE:BAC) provides banking and financial products and services. On February 28, 2024, Bank of America Corporation (NYSE:BAC) stock closed at $34.31 per share. One-month return of Bank of America Corporation (NYSE:BAC) was 2.27%, and its shares gained 2.45% of their value over the last 52 weeks. Bank of America Corporation (NYSE:BAC) has a market capitalization of $270.111 billion.
Diamond Hill Large Cap Strategy stated the following regarding Bank of America Corporation (NYSE:BAC) in its fourth quarter 2023 investor letter:
"Among our top individual contributors in Q4 were KKR and Bank of America Corporation (NYSE:BAC). Banking and financial services company Bank of America rallied alongside large-cap banks broadly in Q4 as the market focused less on interest-rate risks amid the Fed’s announcement it was likely done raising interest rates. Banks also likely generally benefited from a relief rally following three-plus quarters of negative sentiment to start the year. Industry trends aside, however, we maintain our conviction in Bank of America’s position given its diversified, low-cost deposit base, which we believe remains less susceptible to flight."
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Bank of America Corporation (NYSE:BAC) is in 28th position on our list of 30 Most Popular Stocks Among Hedge Funds. At the end of the fourth quarter, Bank of America Corporation (NYSE:BAC) was held by 96 hedge fund portfolios, up from 88 in the previous quarter, according to our database.
We discussed Bank of America Corporation (NYSE:BAC) in another article and shared the list of best dividend stocks to buy according to Warren Buffett. 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.
