Here’s Why Mr. Cooper Group (COOP) Outperformed in Q3
Diamond Hill Capital, an investment management company, released its “Select Strategy” third-quarter 2023 investor letter. A copy of the same can be downloaded here. In Q3, the portfolio fell behind the Russell 3000 Index. Relative weakness was concentrated among staples holdings, and discretionary holdings also trailed benchmark peers, impacting the relative performance. On the other hand, the financial sector holdings and overweight to the sector contributed to a slight tailwind in Q3. The strategy returned -5.99% net of fees in Q3 compared to the Russell 3000 Index’s -3.25% return. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Diamond Hill Select Strategy highlighted stocks like Mr. Cooper Group Inc. (NASDAQ:COOP) in the third quarter 2023 investor letter. Headquartered in Coppell, Texas, Mr. Cooper Group Inc. (NASDAQ:COOP) provides residential loan services. On November 28, 2023, Mr. Cooper Group Inc. (NASDAQ:COOP) stock closed at $59.69 per share. One-month return of Mr. Cooper Group Inc. (NASDAQ:COOP) was 3.36%, and its shares gained 32.17% of their value over the last 52 weeks. Mr. Cooper Group Inc. (NASDAQ:COOP) has a market capitalization of $3.931 billion.
Diamond Hill Select Strategy made the following comment about Mr. Cooper Group Inc. (NASDAQ:COOP) in its Q3 2023 investor letter:
"Other top contributors included Cimpress, Mr. Cooper Group Inc. (NASDAQ:COOP) and KKR. Mortgage-servicing company Mr. Cooper Group’s balanced business model is performing as we’d expect in a challenging mortgage market. While higher rates are a challenge for the company’s mortgage-origination business, they simultaneously benefit the mortgage-servicing business by extending the duration of cash flows."
A senior banker signing a loan document, emphasizing the company's ability to finance mortgages.
Mr. Cooper Group Inc. (NASDAQ:COOP) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 34 hedge fund portfolios held Mr. Cooper Group Inc. (NASDAQ:COOP) at the end of third quarter which was 29 in the previous quarter.
We discussed Mr. Cooper Group Inc. (NASDAQ:COOP) in another article and shared Diamond Hill Small Cap Fund'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.
