Do You Believe in the Upward Potential of Centerspace (CSR)?

Diamond Hill Capital, an investment management company, released its “Small Cap 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 the Russell 2000 Index returning 2.19%, roughly in line with the Russell 1000 Index’s 2.41% gain. Health care (+18.6%) emerged as the best-performing sector in the Russell 2000 Index. Heightened uncertainty and geopolitical risks contributed to a mixed market environment in 2025 and Q4, yet the Russell 2000 Index still posted a 12.81% gain for the year. Heading into 2026, the firm continues to focus on resilient businesses that can sustain earnings in a volatile landscape. The Strategy returned 4.88% (net of fees) in the quarter compared to the Russell 2000 Index’s 2.19% gain. 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 Small Cap Strategy highlighted stocks like Centerspace (NYSE:CSR). The strategy has added Centerspace (NYSE:CSR) to its portfolio during the quarter, which is a REIT that owns and operates apartment communities. On February 3, 2026, Centerspace (NYSE:CSR) stock closed at $64.18 per share. Centerspace (NYSE:CSR) delivered a -4.18% return in the past month, and its shares are up 3.03% over the past twelve months. Centerspace (NYSE:CSR) has a market capitalization of $1.138 billion.

Diamond Hill Small Cap Strategy stated the following regarding Centerspace (NYSE:CSR) in its fourth quarter 2025 investor letter:

“Centerspace (NYSE:CSR) is an apartment REIT with a footprint concentrated in the Upper Midwest and Mountain West. We believe the company is well positioned long term given its quality portfolio in differentiated markets and potential for operational upside as the business scales over time.”

Centerspace (NYSE:CSR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 14 hedge fund portfolios held Centerspace (NYSE:CSR) at the end of the third quarter, compared to 15 in the previous quarter. While we acknowledge the risk and potential of Centerspace (NYSE:CSR) 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 Centerspace (NYSE:CSR) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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.