Here’s Why Diamond Hill Capital Shorted Waters Corporation (WAT)
Diamond Hill Capital, an investment management company, released its “Long-Short Fund” third-quarter 2022 investor letter. A copy of the same can be downloaded here. In the third quarter, the strategy returned -5.25% compared to a -4.61% return for the Russell 1000 Index. Even though the fund’s short book trailed the Russell 1000 Index, it still added positive returns. On the other hand, weakness in consumer discretionary and communication services holdings dragged the performance of the long book of the fund in the quarter. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.
Diamond Hill Capital highlighted stocks like Waters Corporation (NYSE:WAT) in its Q3 2022 investor letter. Headquartered in Milford, Massachusetts, Waters Corporation (NYSE:WAT) is a US-based life science tools-providing company. On November 29, 2022, Waters Corporation (NYSE:WAT) stock closed at $330.16 per share. One-month return of Waters Corporation (NYSE:WAT) was 11.64%, and its shares gained 0.51% of their value over the last 52 weeks. Waters Corporation (NYSE:WAT) has a market capitalization of $19.614 billion.
Diamond Hill Capital made the following comment about Waters Corporation (NYSE:WAT) in its Q3 2022 investor letter:
"Other top contributors included our long position in HCA Healthcare and our short position in Waters Corporation (NYSE:WAT). Healthcare facilities operator HCA outperformed low expectations as it reported results showing some of its cost pressures were easing. In Q3, life science tools company Waters reported solid revenue growth but weak margin expansion, pressuring shares. Our view is the company, with already industry-leading margins, will struggle to drive additional margin expansion."
Waters Corporation (NYSE:WAT) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 41 hedge fund portfolios held Waters Corporation (NYSE:WAT) at the end of the third quarter, which was 35 in the previous quarter.
We discussed Waters Corporation (NYSE:WAT) in another article and shared the best stocks to buy according to Terry Smith’s Fundsmith LLP. In addition, please check out our hedge fund investor letters Q3 2022 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.
