Diamond Hill Capital, an investment management company, released its “Long-Short Fund” second-quarter 2024 investor letter. A copy of the letter can be downloaded here. The portfolio achieved positive returns in Q2 but 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, giving a relative tailwind to the performance. The long positions in industrials, materials, and real estate holdings contributed to relative strength. In addition, you may look at the fund’s top 5 holdings to learn about its best picks in 2024.

Diamond Hill Long-Short Fund highlighted stocks like GameStop Corp. (NYSE:GME), in the second quarter 2024 investor letter. GameStop Corp. (NYSE:GME) is a specialty retailer that provides games and entertainment products. The one-month return of GameStop Corp. (NYSE:GME) was 13.72%, and its shares gained 31.95% of their value over the last 52 weeks. On September 24, 2024, GameStop Corp. (NYSE:GME) stock closed at $22.63 per share with a market capitalization of $10.105 billion.

Diamond Hill Long-Short Fund stated the following regarding GameStop Corp. (NYSE:GME) in its Q2 2024 investor letter:

"Among our bottom Q2 contributors were our short position in GameStop Corp. (NYSE:GME), as well as our long position in Enovis Corporation. Shares of electronics retailer GameStop got a boost in Q2 as trader Keith Gill again made headlines and reinvigorated retail investors in the stock — which allowed the company to issue new stock and raise more capital."

A gamer playing a game on one of the specialty retail company's gaming platforms.

GameStop Corp. (NYSE:GME) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 12 hedge fund portfolios held GameStop Corp. (NYSE:GME) at the end of the second quarter which was 8 in the previous quarter. While we acknowledge the potential of GameStop Corp. (NYSE:GME) 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.

In another article, we discussed GameStop Corp. (NYSE:GME) and shared the list of stocks to watch in September from Jim Cramer latest stock portfolio. In addition, please check out our hedge fund investor letters Q2 2024 page for more investor letters from hedge funds and other leading investors.