Diamond Hill Capital, an investment management company, released its “Mid Cap Strategy” fourth-quarter 2024 investor letter. A copy of the letter can be downloaded here. Q4 witnessed an uneven increase in markets, capping off yet another positive year for the markets. In general, equities rose after the US election, but some gave up most or all of those gains by the end of the year. The portfolio trailed the Russell Midcap Index in Q4 and for the full year. The strategy returned -2.18% (gross) and -2.35% (net) in the quarter compared to 0.62% for the index. For the full year, the strategy returned 11.39% (gross) and 10.61% (net) compared to 15.34% return for the index. In addition, you can check the top 5 holdings of the strategy to know its best picks in 2024.

In its fourth quarter 2024 investor letter, Diamond Hill Mid Cap Strategy emphasized stocks such as Formula One Group (NASDAQ:FWONK), in the fourth quarter 2024 investor letter. Formula One Group (NASDAQ:FWONK) is a motorsports company. One-month return of Formula One Group (NASDAQ:FWONK) was -10.95%, and its shares gained 28.68% of their value over the last 52 weeks. On March 18, 2025, Formula One Group (NASDAQ:FWONK) stock closed at $87.53 per share with a market capitalization of $21.623 billion.

Diamond Hill Mid Cap Strategy stated the following regarding Formula One Group (NASDAQ:FWONK) in its Q4 2024 investor letter:

"Other top contributors in Q4 included Alaska Air, Webster Financial and Formula One Group (NASDAQ:FWONK). Formula One reached several new and expanded sponsorship agreements during the quarter which materially enhance its 2025 growth profile. Liberty Media also announced Liberty Formula One will be converted from a tracking stock — which can carry some additional risks — into a regular stock following its split from Liberty Live Group."

A team of championship drivers racing their Formula One cars around a track.

Formula One Group (NASDAQ:FWONK) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 50 hedge fund portfolios held Formula One Group (NASDAQ:FWONK) at the end of the fourth quarter compared to 54 in the third quarter. While we acknowledge the potential of Formula One Group (NASDAQ:FWONK) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

Story Continues

In another article, we discussed Formula One Group (NASDAQ:FWONK) and shared stock picks from Warren Buffett's growth stock portfolio. In addition, please check out our hedge fund investor letters Q4 2024 page for more investor letters from hedge funds and other leading investors.

READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks.

Disclosure: None. This article is originally published at Insider Monkey.

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