Diamond Hill Capital, a First Eagle Investment Management company, issued its Q1 2026 investor letter for its “Small Cap Strategy”. A copy of the letter can be downloaded here. Small caps started 2026 strong, following 2025, but pulled back late in the quarter due to geopolitical tensions, with the US and Israel acting against Iran. The Russell 2000 gained 0.89%, outperforming the Russell 1000’s 4.18% decline. Energy was the leading sector, up 38% as oil prices surged amid supply fears. The strategy returned 3.41% (net) vs. the Russell 2000’s 0.89%. The Fund focuses on resilient businesses amid volatility, aiming to navigate uncertainty and capitalize on market opportunities. In addition, please check the Strategy’s top five holdings to know its best picks in 2026.
In its first-quarter 2026 investor letter, Diamond Hill Small Cap Strategy highlighted stocks like Proficient Auto Logistics, Inc. (NASDAQ:PAL). Proficient Auto Logistics, Inc. (NASDAQ:PAL) is a North America based leading auto transportation and logistics company. On May 4, 2026, Proficient Auto Logistics, Inc. (NASDAQ:PAL) closed at $7.19 per share. One-month return of Proficient Auto Logistics, Inc. (NASDAQ:PAL) was 4.05%, and its shares lost 11.67% over the past 52 weeks. Proficient Auto Logistics, Inc. (NASDAQ:PAL) has a market capitalization of $199.35 million.
Diamond Hill Small Cap Strategy stated the following regarding Proficient Auto Logistics, Inc. (NASDAQ:PAL) in its Q1 2026 investor letter:
“Proficient Auto Logistics, Inc. (NASDAQ:PAL) is one of the largest auto transport companies in the US and has played a leading role in consolidating the industry, bringing together several non-union carriers nationwide. The company has broad geographic coverage and meaningful contracts with multiple auto manufacturers. Rising oil prices and macroeconomic uncertainty have recently pressured auto sales and weighed on performance, but we continue to believe the company is well-positioned to outperform over the long-term, supported by its cost advantage, strong balance sheet and high-quality management team.”
Proficient Auto Logistics, Inc. (NASDAQ:PAL) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 13 hedge fund portfolios held Proficient Auto Logistics, Inc. (NASDAQ:PAL) at the end of the fourth quarter, up from 10 in the previous quarter. While we acknowledge the risk and potential of Proficient Auto Logistics, Inc. (NASDAQ:PAL) 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 Proficient Auto Logistics, Inc. (NASDAQ:PAL) 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 Q1 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.
