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, its new addition FedEx Freight Holding Company, Inc. (NYSE:FDXF). FedEx Freight Holding Company, Inc. (NYSE:FDXF), a spinoff from FedEx Corporation, provides less-than-truckload freight transportation services. On July 31, 2026, FedEx Freight Holding Company, Inc. (NYSE:FDXF) closed at $140.53 per share. The one-month return of FedEx Freight Holding Company, Inc. (NYSE:FDXF) was -7.96%. FedEx Freight Holding Company, Inc. (NYSE:FDXF) has a market capitalization of $20.92 billion with a 52-week trading range between $135.00 – $200.00.
Diamond Hill Capital Large Cap Strategy stated the following regarding FedEx Freight Holding Company, Inc. (NYSE:FDXF) in its Q2 2026 investor letter:
“FedEx Freight Holding Company, Inc. (NYSE:FDXF) is a spin-off of shipping company FedEx Corp., creating a standalone less-than-truckload (LTL) carrier that is the industry’s largest by revenue. The LTL industry is highly concentrated, with disciplined operators and favorable demand trends. As a standalone company, FedEx Freight should be better positioned to focus on operational execution and improve margins, where it currently trails leading competitors.”
FedEx Freight Holding Company, Inc. (NYSE:FDXF) is not on our list of the 40 Most Popular Stocks Among Hedge Funds. While we acknowledge the risk and potential of FedEx Freight Holding Company, Inc. (NYSE:FDXF) 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 FedEx Freight Holding Company, Inc. (NYSE:FDXF) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered FedEx Freight Holding Company, Inc. (NYSE:FDXF) and shared the list of stocks Jim Cramer discussed. 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.
