Here’s How the Acquisition Helps FTAI Infrastructure (FIP)

Diamond Hill Capital, an investment management company, released its “Small Cap Strategy” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. Markets continued their rally in the third quarter, with small-cap stocks gaining over 12% as measured by the Russell 2000 Index. However, the portfolio trailed the Russell 2000 Index in the quarter, returning 7.93% (net of fees). The relative underperformance was mainly due to the rally being driven by sectors that the portfolio typically does not own. For more information on the fund’s top picks in 2025, please check its top five holdings.

In its third-quarter 2025 investor letter, Diamond Hill Capital Small Cap Strategy highlighted stocks such as FTAI Infrastructure Inc. (NASDAQ:FIP). Headquartered in New York, New York, FTAI Infrastructure Inc. (NASDAQ:FIP) acquires, develops, and operates assets and businesses that represent infrastructure for customers in the transportation and energy industries. The one-month return of FTAI Infrastructure Inc. (NASDAQ:FIP) was -26.11%, and its shares lost 53.93% of their value over the last 52 weeks. On November 24, 2025, FTAI Infrastructure Inc. (NASDAQ:FIP) stock closed at $3.99 per share, with a market capitalization of $464.015 million.

Diamond Hill Capital Small Cap Strategy stated the following regarding FTAI Infrastructure Inc. (NASDAQ:FIP) in its third quarter 2025 investor letter:

“Bottom contributors in Q3 included FTAI Infrastructure Inc. (NASDAQ:FIP) and Mesa Laboratories. FTAI Infrastructure, which operates infrastructure assets for transportation, energy and industrial products customers, saw volumes at its Jefferson terminal increase slower than expected in the quarter and performed planned maintenance at its Long Ridge facility — factors which impacted revenues and weighed on the share price. However, during the quarter, FTAI Infrastructure also announced it will acquire The Wheeling Corporation, which owns the Wheeling & Lake Erie Railway Company, a Class II regional freight railroad serving customers in Ohio, Pennsylvania, West Virginia and Maryland. We believe this acquisition is strategically significant and could represent a pivotal moment in the company’s evolution toward becoming primarily a freight rail business, while also working to monetize its other assets.”

Why SFL Corporation (SFL) Stands Out Among Shipping Stocks With Dividends

FTAI Infrastructure Inc. (NASDAQ:FIP) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 24 hedge fund portfolios held FTAI Infrastructure Inc. (NASDAQ:FIP) at the end of the second quarter, the same as in the previous quarter.  While we acknowledge the risk and potential of FTAI Infrastructure Inc. (NASDAQ:FIP) 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 FTAI Infrastructure Inc. (NASDAQ:FIP) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered FTAI Infrastructure Inc. (NASDAQ:FIP) and shared Tourlite Capital Management’s views on the company. In addition, please check out our hedge fund investor letters Q3 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.