Diamond Hill Large Cap Strategy’s Q1 2026 Investor Letter

Diamond Hill Capital, a First Eagle Investment Management company, issued its Q1 2026 investor letter for its “Large Cap Strategy”. The Strategy declined 2.39% (net of fees), trailing the Russell 1000 Value Index’s 2.10%. The performance was positively affected by stock selection in industrials and consumer discretionary, along with an underweight in communication services. While stock selection in information technology, financials, and health care was the largest detractor from relative performance. The war in Iran is creating uncertainty in markets. However, it effectively supported the portfolio’s focus on oil-sensitive exploration and production companies. Technology companies are under pressure in Q1 amid concerns about AI’s potential negative effects on their businesses, but their competitive advantages remain stronger than their current valuations suggest. Despite these challenges, the market is beginning to expand into more attractive opportunities, especially in defensive sectors and cyclicals that do not benefit from AI. In addition, please check the Strategy’s top five holdings to know its best picks in 2026.

A copy of Diamond Hill Large Cap Strategy’s Q1 2026 investor letter is available to download here.