May 18, 2024

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Short Position in International Business Machines Corporation (IBM) Detracted in Q4

2 min read

Diamond Hill Capital, an investment management company, released its “Long-Short Fund” fourth-quarter 2023 investor letter. A copy of the same can be downloaded here. The portfolio achieved positive returns in Q4, but it trailed the Russell 1000 Index and the blended benchmark (60% Russell 1000 Index/40% Bloomberg US Treasury Bills 1-3 Month Index). The short positions didn’t perform as well as the index, but they still contributed positively to the overall performance. The long positions in financials, on the other hand, performed better than the index. However, long positions in technology and the fund’s below-benchmark exposure didn’t perform well and were the cause of underperformance in Q4. In addition, you may look at the fund’s top 5 holdings to learn about its best picks in 2023.

Diamond Hill Long-Short Fund featured stocks like International Business Machines Corporation (NYSE:IBM) in its Q4 2023 investor letter. Headquartered in Armonk, New York, International Business Machines Corporation (NYSE:IBM) provides integrated solutions and services. On April 3, 2024, International Business Machines Corporation (NYSE:IBM) stock closed at $190.90 per share. One-month return of International Business Machines Corporation (NYSE:IBM) was -2.87%, and its shares gained 46.28% of their value over the last 52 weeks. International Business Machines Corporation (NYSE:IBM) has a market capitalization of $175.007 billion.

Diamond Hill Long-Short Fund stated the following regarding International Business Machines Corporation (NYSE:IBM) in its fourth quarter 2023 investor letter:

“Other bottom contributors included our short positions in Garmin and International Business Machines Corporation (NYSE:IBM), as well as our long position in Chevron. IBM’s software and consulting businesses were solid in the quarter, helping drive revenue growth. But the company faces numerous fundamental headwinds in both these businesses, and we expect it will struggle to meet cash-flow guidance.”

A closeup of a woman’s hands typing rapidly on a laptop in a corporate office setting.

International Business Machines Corporation (NYSE:IBM) is not on our list of 30 Most Popular Stocks Among Hedge Funds. At the end of the fourth quarter, International Business Machines Corporation (NYSE:IBM) was held by 50 hedge fund portfolios, down from 53 in the previous quarter, according to our database.

We discussed International Business Machines Corporation (NYSE:IBM) in another article and shared the list of biggest software companies in the US. 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.

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