Diamond Hill Capital, an investment management company, released its “Mid 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 small and large cap positions being stronger performers, returning 2.19% and 2.41%. While the mid-cap range was a relative laggard, with the Russell Mid Cap Index returning 0.16%. The Strategy returned 3.65% (net) in Q4, compared to 0.16% return for the Russell Midcap Index. YTD, the strategy returned 13.47%, outperforming the 10.60% return for the Index. In 2025, AI-related spending remained a key driver in equity markets, though December saw a pause as investors became more cautious about AI developments and potential market bubbles. Given the elevated equity market valuations, the Strategy is well-positioned to withstand ongoing uncertainty. 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 Mid Strategy identified CubeSmart (NYSE:CUBE) as its leading detractor. CubeSmart (NYSE:CUBE) is a REIT that owns and operates self-administered and self-managed properties across the United States. On March 19, 2026, CubeSmart (NYSE:CUBE) stock closed at $38.22 per share. One-month return of CubeSmart (NYSE:CUBE) was -5.16%, and its shares lost 8.15% over the past 52 weeks. CubeSmart (NYSE:CUBE) has a market capitalization of $8.761 billion.
Diamond Hill Mid Strategy stated the following regarding CubeSmart (NYSE:CUBE) in its fourth quarter 2025 investor letter:
“Shares of self-storage REIT CubeSmart (NYSE:CUBE) declined as the slowdown in existing home sales persisted, leading to lower occupancy for storage units. While this weaker backdrop will likely persist in 2026, we believe the company remains well positioned long term given its economies of scale, brand awareness and the industry’s high barriers to entry.”
CubeSmart (NYSE:CUBE) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 44 hedge fund portfolios held CubeSmart (NYSE:CUBE) at the end of the fourth quarter, up from 34 in the previous quarter. While we acknowledge the risk and potential of CubeSmart (NYSE:CUBE) 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 CubeSmart (NYSE:CUBE) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered CubeSmart (NYSE:CUBE) and shared a list of quality stocks with highest dividends. 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.
