Diamond Hill Capital, a First Eagle Investment Management company, issued its Q2 2026 investor letter for its “Large Cap Strategy”. A copy of the letter is available to download here. The Strategy returned 3.42% net of fees, trailing the Russell 1000 Value Index’s 13.87% gain. Performance benefited from stock selection in consumer staples, materials and consumer discretionary, along with an underweight in utilities. However, stock selection in information technology, health care and industrials detracted from relative performance. AI remained the dominant market theme, driving an 81% gain in technology, while energy declined after the Iran war ended and oil prices fell. The Strategy’s limited exposure to companies benefiting from AI-related capital spending caused most of its underperformance, while software holdings remained pressured by concerns about AI disruption. Despite elevated market valuations, the team continues to find attractive opportunities through bottom-up research and expects active management to support better-than-market returns. In addition, please check the Strategy’s top five holdings to know its best picks in 2026.
In its second-quarter 2026 investor letter, Diamond Hill Capital Large Cap Strategy highlighted Wix.com Ltd. (NASDAQ:WIX). Wix.com Ltd. (NASDAQ:WIX) operates a cloud-based web development platform for registered users and creators in the United States and internationally. On July 31, 2026, Wix.com Ltd. (NASDAQ:WIX) closed at $56.34 per share. One-month return of Wix.com Ltd. (NASDAQ:WIX) was 9.60% and its shares lost 58.13% over the past 52 weeks. Wix.com Ltd. (NASDAQ:WIX) has a market capitalization of $2.45 billion with a 52-week trading range between $40.16 – $190.93.
Diamond Hill Capital Large Cap Strategy stated the following regarding Wix.com Ltd. (NASDAQ:WIX) in its Q2 2026 investor letter:
“Wix.com is a website design software and provides “business in a box” back-end functionality to small businesses. The company’s core business has experienced slowing growth due to AI-driven vibe coding, and after reporting underwhelming 1Q26 results, the company announced a reduction in force and reduced revenue growth guidance for 2026. Given the fundamental headwinds the company is facing, we exited our position to deploy capital to more attractive opportunities.”
Wix.com Ltd. (NASDAQ:WIX) is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 53 hedge fund portfolios held Wix.com Ltd. (NASDAQ:WIX) at the end of the first quarter which was 45 in the previous quarter. While we acknowledge the risk and potential of Wix.com Ltd. (NASDAQ:WIX) 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 Wix.com Ltd. (NASDAQ:WIX) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Wix.com Ltd. (NASDAQ:WIX) and shared Columbia Seligman Global Technology Fund’s insight on the company. In addition, please check out our hedge fund investor letters Q2 2026 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.
