Diamond Hill Capital, a First Eagle Investment Management company, issued its Q2 2026 investor letter for its “Mid Cap Strategy”. A copy of the Q2 2026 investor letter can be downloaded here. In the quarter, equity markets posted strong returns as resilient economic growth and robust corporate earnings supported investor sentiment, although AI-related companies continued to dominate market leadership. Technology was the strongest-performing sector, while industrials also advanced and energy lagged as oil prices declined. The Fund returned 7.92% and the Russell Midcap Index returned 13.83%. Health care holdings were the largest positive contributor, supported by strength across managed care, diagnostics, and life sciences. However, stock selection and an underweight position in information technology remained the main relative headwinds. The strategy maintained limited exposure to highly valued semiconductor and memory companies, reflecting concerns that current valuations assume an extended period of elevated AI spending. It also continued to assess software and services businesses individually based on how AI may affect their long-term competitive positions. Management emphasized higher-quality companies, attractive valuations, capital preservation, and durable long-term compounding while remaining cautious about elevated valuations, concentrated leadership, and the sustainability of the current AI investment cycle. Please review the Strategy’s top five holdings for its key selections.
In its second-quarter 2026 investor letter, Diamond Hill Capital Mid Cap Strategy highlighted Equifax Inc. (NYSE:EFX), a company specializing in data, analytics, and technology through its Workforce Solutions, U.S. Information Solutions (USIS), and International divisions. During the quarter, the strategy added Equifax Inc. (NYSE:EFX) to its portfolio. On August 04, 2026, Equifax Inc. (NYSE:EFX) closed at $177.12 per share, reflecting a market capitalization of $20.81 billion. Equifax Inc. (NYSE:EFX) posted a one-month return of 6.00%, while its shares lost 26.38% over the past 52 weeks.
Diamond Hill Capital Mid Cap Strategy stated the following regarding Equifax Inc. (NYSE:EFX) in its Q2 2026 investor letter:
“Equifax Inc. (NYSE:EFX), a provider of mortgage, employment and other data, manages proprietary datasets that are costly and difficult to replicate. Given that its data is critical to customers’ workflows yet represents a small portion of their overall costs and it operates in a consolidated industry, the company has historically benefited from strong pricing power and consistent growth.”
Equifax Inc. (NYSE:EFX) is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 45 hedge fund portfolios held Equifax Inc. (NYSE:EFX) at the end of the first quarter which was 60 in the previous quarter. While we acknowledge the risk and potential of Equifax Inc. (NYSE:EFX) 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 Equifax Inc. (NYSE:EFX) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Equifax Inc. (NYSE:EFX) and shared Vulcan Value Partners’ 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.
