Increased Optimism Lifted Triumph Financial (TFIN) in Q4

Diamond Hill Capital, an investment management company, released its “Small Cap Strategy” fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. The fourth quarter posted another period of favorable gains for equity markets, with the Russell 2000 Index returning 2.19%, roughly in line with the Russell 1000 Index’s 2.41% gain. Health care (+18.6%) emerged as the best-performing sector in the Russell 2000 Index. Heightened uncertainty and geopolitical risks contributed to a mixed market environment in 2025 and Q4, yet the Russell 2000 Index still posted a 12.81% gain for the year. Heading into 2026, the firm continues to focus on resilient businesses that can sustain earnings in a volatile landscape. The Strategy returned 4.88% (net of fees) in the quarter compared to the Russell 2000 Index’s 2.19% gain. Please review the Strategy’s top five holdings to gain insights into their key selections for 2025.

In its fourth-quarter 2025 investor letter, Diamond Hill Small Cap Strategy highlighted Triumph Financial, Inc. (NYSE:TFIN) as one of the leading contributors. Triumph Financial, Inc. (NYSE:TFIN) is a financial holding company that offers banking, factoring, payments, and intelligence services with a focus on the transportation industry. On February 4, 2026, Triumph Financial, Inc. (NYSE:TFIN) stock closed at $67.57 per share. Triumph Financial, Inc. (NYSE:TFIN) delivered a -0.84% return in the past month, and its shares are down 14.07% over the past twelve months. Triumph Financial, Inc. (NYSE:TFIN) has a market capitalization of $1.606 billion.

Diamond Hill Small Cap Strategy stated the following regarding Triumph Financial, Inc. (NYSE:TFIN) in its fourth quarter 2025 investor letter:

“Triumph Financial, Inc. (NYSE:TFIN) provides banking and other services with a niche focus on the transportation industry, including its innovative payments platform — TriumphPay. In Q4, shares rebounded on increasing optimism for an end to the longest running freight recession in history.”

Triumph Financial, Inc. (NYSE:TFIN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 16 hedge fund portfolios held Triumph Financial, Inc. (NYSE:TFIN) at the end of the third quarter, the same as in the previous quarter. While we acknowledge the risk and potential of Triumph Financial, Inc. (NYSE:TFIN) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Triumph Financial, Inc. (NYSE:TFIN) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Triumph Financial, Inc. (NYSE:TFIN) and shared Diamond Hill Capital Small Cap Strategy’s views on the company last quarter. In addition, please check out our hedge fund investor letters Q4 2025 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.