Here’s Why Diamond Hill Shorted CBIZ (CBZ) Stock
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 CBIZ, Inc. (NYSE:CBZ) in its Q3 2022 investor letter. Headquartered in Cleveland, Ohio, CBIZ, Inc. (NYSE:CBZ) operates through Financial Services, Benefits and Insurance Services, and National Practices segments. On November 29, 2022, CBIZ, Inc. (NYSE:CBZ) stock closed at $48.84 per share. One-month return of CBIZ, Inc. (NYSE:CBZ) was 3.34%, and its shares gained 38.20% of their value over the last 52 weeks. CBIZ, Inc. (NYSE:CBZ) has a market capitalization of $2.483 billion.
Diamond Hill Capital made the following comment about CBIZ, Inc. (NYSE:CBZ) in its Q3 2022 investor letter:
"CBIZ, Inc. (NYSE:CBZ) is a national accounting and consulting firm serving primarily small and mid-sized businesses. We believe the market is incorrectly extrapolating CBIZ’s very strong fundamentals over the last approximately two years driven by what we perceive to be an exceptionally favorable operating environment for professional services firms. We believe valuations should contract as the company’s operating performance eventually reverts to more normalized levels."
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CBIZ, Inc. (NYSE:CBZ) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 19 hedge fund portfolios held CBIZ, Inc. (NYSE:CBZ) at the end of the third quarter, which was 15 in the previous quarter. 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.
