Diamond Hill Capital, a First Eagle Investment Management company, issued its Q1 2026 investor letter for its “Select Strategy”. A copy of the letter can be downloaded here. The Strategy declined 0.52% (net of fees), surpassing the Russell 3000 Index’s 3.96%. The performance was driven by stock selection and overweight exposure in industrials, along with an underweight in information technology. Geopolitical developments and changing expectations regarding artificial intelligence (AI) are impacting market dynamics this quarter. The firm is assessing the heightened uncertainty from the situation in the Middle East while also seeking attractive investment opportunities in large-cap, high-quality, cash-generative, and defensive businesses. In addition, please check the Strategy’s top five holdings to know its best picks in 2026.
In its first-quarter 2026 investor letter, Diamond Hill Select Strategy highlighted Salesforce, Inc. (NYSE:CRM). Salesforce, Inc. (NYSE:CRM) is a cloud computing company that offers Customer Relationship Management (CRM) technology that brings companies and customers together. On June 8, 2026, Salesforce, Inc. (NYSE:CRM) closed at $182.55 per share. One-month return of Salesforce, Inc. (NYSE:CRM) was 4.96%, and its shares lost 32.96% over the past 52 weeks. Salesforce, Inc. (NYSE:CRM) has a market capitalization of $149.51 billion.
Diamond Hill Select Strategy stated the following regarding Salesforce, Inc. (NYSE:CRM) in its Q1 2026 investor letter:
“Shares of Salesforce, Inc. (NYSE:CRM) declined amid concerns around generative AI competition, with revenue and profit growth trending below expectations. Despite a more prolonged slowdown than initially anticipated, growth appears poised to reaccelerate in 2026, and if management’s longer-term guidance proves accurate, revenue growth and profitability should trend higher over time.”
Salesforce, Inc. (NYSE:CRM) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 101 hedge fund portfolios held Salesforce, Inc. (NYSE:CRM) at the end of the first quarter, compared to 115 in the previous quarter. In the first quarter of fiscal 2027, Salesforce, Inc. (NYSE:CRM) generated revenue of $11.13 billion, up 13% year over year nominal and 12% at constant currency. While we acknowledge the risk and potential of Salesforce, Inc. (NYSE:CRM) 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 Salesforce, Inc. (NYSE:CRM) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Salesforce, Inc. (NYSE:CRM) and shared the list of best cheap stocks to buy for beginners. In addition, please check out our hedge fund investor letters Q1 2026 page for more investor letters from hedge funds and other leading investors.
READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years.
Disclosure: None. This article is originally published at Insider Monkey.
