Here’s What Lifted Huntington Ingalls (HII) in Q3

Diamond Hill Capital, an investment management company, released its “Select Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. Markets continued their YTD rally in the third quarter, with the Russell 3000 Index surging 8%. At the same time, the portfolio underperformed the Russell 3000 Index, returning 4.98%. To get an idea of the fund’s best choices for 2025, check out its top 5 positions.

In its third-quarter 2025 investor letter, Diamond Hill Select Fund highlighted stocks such as Huntington Ingalls Industries, Inc. (NYSE:HII). Huntington Ingalls Industries, Inc. (NYSE:HII) is a US-based company that designs, builds, overhauls, and repairs military ships. The one-month return of Huntington Ingalls Industries, Inc. (NYSE:HII) was 4.34%, and its shares gained 19.13% of their value over the last 52 weeks. On October 29, 2025, Huntington Ingalls Industries, Inc. (NYSE:HII) stock closed at $298.42 per share, with a market capitalization of $11.71 billion.

Diamond Hill Select Fund stated the following regarding Huntington Ingalls Industries, Inc. (NYSE:HII) in its third quarter 2025 investor letter:

“Among our top individual contributors in Q3 were Mr. Cooper Group and Huntington Ingalls Industries, Inc. (NYSE:HII). US Department of Defense (DOD) and Navy supplier Huntington Ingalls is seeing early signs of progress from its recent efforts to improve employee attrition. We continue to believe Huntington Ingalls is one of the best positioned defense companies to meet the DOD’s need to prepare for a potential conflict in the Pacific — which should ensure strong demand for the next five-plus years. Furthermore, as its recent labor issues abate, the company should be able to improve margins over time.”

Was Jim Cramer Right About Huntington Ingalls Industries Inc. (HII)?

Huntington Ingalls Industries, Inc. (NYSE:HII) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 36 hedge fund portfolios held Huntington Ingalls Industries, Inc. (NYSE:HII) at the end of the second quarter, up from 33 in the previous quarter. While we acknowledge the risk and potential of Huntington Ingalls Industries, Inc. (NYSE:HII) 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 Huntington Ingalls Industries, Inc. (NYSE:HII) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Huntington Ingalls Industries, Inc. (NYSE:HII) and shared the list of undervalued aerospace stocks to buy. 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.