Here’s Why Diamond Hill Small Cap Fund is Considering Triumph Financial (TFIN) As a Resilient Company

Diamond Hill Capital, an investment management company, released its “Small Cap Fund” first-quarter 2025 investor letter. A copy of the letter can be downloaded here. In Q1, markets were uneven due to the new presidential administration’s activity, leading to concern about the future. The Russell 3000 Index fell by 4.7% in Q1, the first quarterly loss since Q3 2023. Diamond Hill Small Cap Fund returned -11.56% in Q1, trailing the Russell 2000 Index’s -9.48% return. For more information on the fund’s top picks in 2025, please check its top five holdings.

In its first-quarter 2025 investor letter, Diamond Hill Small Cap Fund highlighted stocks such as Triumph Financial, Inc. (NASDAQ:TFIN). Triumph Financial, Inc. (NASDAQ:TFIN) is a financial holding company that offers banking, factoring, payments, and intelligence services. The one-month return of Triumph Financial, Inc. (NASDAQ:TFIN) was 1.25%, and its shares lost 26.24% of their value over the last 52 weeks. On May 6, 2025, Triumph Financial, Inc. (NASDAQ:TFIN) stock closed at $54.21 per share with a market capitalization of $1.272 billion.

Diamond Hill Small Cap Fund stated the following regarding Triumph Financial, Inc. (NASDAQ:TFIN) in its Q1 2025 investor letter:

“Among our bottom individual Q1 contributors were Triumph Financial, Inc. (NASDAQ:TFIN) and Live Oak Bancshares. Triumph Financial provides banking and other services with a niche focus on the trucking industry — which has been hit particularly hard the last few years amid a long freight recession and now faces additional tariff-related challenges, should less trade result in less movement of goods. Shares were pressured particularly hard during the quarter. However, we maintain our conviction in the positive outlook for what we consider a resilient company that is well-positioned to grow long into the future.”

A close-up of a cash register, with passengers lined up at the window, illustrating the company’s payments and holdings.

Triumph Financial, Inc. (NASDAQ:TFIN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 14 hedge fund portfolios held Triumph Financial, Inc. (NASDAQ:TFIN) at the end of the fourth quarter, compared to 15 in the third quarter. While we acknowledge the potential of Triumph Financial, Inc. (NASDAQ:TFIN) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

We discussed Triumph Financial, Inc. (NASDAQ:TFIN) in a previous article and explained the reasons for the decline of bank stocks in 2025. In addition, please check out our hedge fund investor letters Q1 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.