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 Oil-Dri Corporation of America (NYSE:ODC) as a leading contributor. Oil-Dri Corporation of America (NYSE:ODC) is a US-based leading manufacturer of private-label cat litter and sorbent products. On May 4, 2026, Oil-Dri Corporation of America (NYSE:ODC) stock closed at $72.06 per share. Oil-Dri Corporation of America (NYSE:ODC) delivered a 5.32% return in the past month, and its shares are up 63.44% over the past twelve months. Oil-Dri Corporation of America (NYSE:ODC) has a market capitalization of $1.04 billion.
Diamond Hill Small Cap Strategy stated the following regarding Oil-Dri Corporation of America (NYSE:ODC) in its Q1 2026 investor letter:
“Oil-Dri Corporation of America (NYSE:ODC), a leading provider of branded and private label cat litter as well as other sorbent materials, outperformed as management has continued to successfully execute a multi year transformation toward premiumization and operational excellence. This transformation, which has prioritized operational flexibility, shifts to higher-margin products and onshoring of packaging to insulate from tariffs, has created defensible moats for the company that are hard for competitors to replicate.”
Oil-Dri Corporation of America (NYSE:ODC) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 19 hedge fund portfolios held Oil-Dri Corporation of America (NYSE:ODC) at the end of the fourth quarter, up from 16 in the previous quarter. While we acknowledge the risk and potential of Oil-Dri Corporation of America (NYSE:ODC) 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 Oil-Dri Corporation of America (NYSE:ODC) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Oil-Dri Corporation of America (NYSE:ODC) and shared Diamond Hill Small Cap Strategy’s views on the company last quarter. 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.
