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 highlighted General Mills, Inc. (NYSE:GIS) as a new addition. General Mills, Inc. (NYSE:GIS) is an American manufacturer of branded consumer foods. On March 19, 2026, General Mills, Inc. (NYSE:GIS) stock closed at $37.50 per share. One-month return of General Mills, Inc. (NYSE:GIS) was -15.96%, and its shares lost 36.05% over the past 52 weeks. General Mills, Inc. (NYSE:GIS) has a market capitalization of $20.009 billion.
Diamond Hill Mid Strategy stated the following regarding General Mills, Inc. (NYSE:GIS) in its fourth quarter 2025 investor letter:
“General Mills, Inc. (NYSE:GIS), a food and pet nutrition company with leading positions across several product categories, faced near-term volume pressure as consumer behavior shifted following significant post-pandemic price increases. The company has reinvested productivity savings into pricing and advertising, actions aimed at supporting the long-term health of its brands.”
General Mills, Inc. (NYSE:GIS) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 47 hedge fund portfolios held General Mills, Inc. (NYSE:GIS) at the end of the fourth quarter, compared to 48 in the previous quarter. While we acknowledge the risk and potential of General Mills, Inc. (NYSE:GIS) 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 General Mills, Inc. (NYSE:GIS) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered General Mills, Inc. (NYSE:GIS) and shared a list of best safe dividend stocks for 2026. 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.
