Diamond Hill Capital, an investment management company, released its “Mid Strategy” fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. The fourth quarter posted another period of favorable gains for equity markets, with small and large cap positions being stronger performers, returning 2.19% and 2.41%. While the mid-cap range was a relative laggard, with the Russell Mid Cap Index returning 0.16%. The Strategy returned 3.65% (net) in Q4, compared to 0.16% return for the Russell Midcap Index. YTD, the strategy returned 13.47%, outperforming the 10.60% return for the Index. In 2025, AI-related spending remained a key driver in equity markets, though December saw a pause as investors became more cautious about AI developments and potential market bubbles. Given the elevated valuation in the equity market, the Strategy is well-positioned for ongoing levels of heightened uncertainty going forward. Please review the Strategy’s top five holdings to gain insights into their key selections for 2025.
In its fourth-quarter 2025 investor letter, Diamond Hill Mid Strategy highlighted stocks such as WESCO International, Inc. (NYSE:WCC). WESCO International, Inc. (NYSE:WCC) offers business-to-business distribution, logistics services, and supply chain solutions. The one-month return of WESCO International, Inc. (NYSE:WCC) was -13.48%, and its shares gained 57.16% of their value over the last 52 weeks. On March 17, 2026, WESCO International, Inc. (NYSE:WCC) stock closed at $261.51 per share, with a market capitalization of $12.705 billion.
Diamond Hill Mid Strategy stated the following regarding WESCO International, Inc. (NYSE:WCC) in its fourth quarter 2025 investor letter:
“Electrical products distributor WESCO International, Inc. (NYSE:WCC) outperformed in Q4 after reporting solid Q3 results and raising 2025 guidance. Better-than-expected organic growth was driven by its rapidly expanding data center business, which reached nearly 20% of total revenue.”
WESCO International, Inc. (NYSE:WCC) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 48 hedge fund portfolios held WESCO International, Inc. (NYSE:WCC) at the end of the fourth quarter, compared to 49 in the previous quarter. In Q4 2025 WESCO International, Inc. (NYSE:WCC) reported revenue of $6.1 billion, an increase of 10% year over year with organic sales up 9%. While we acknowledge the risk and potential of WESCO International, Inc. (NYSE:WCC) 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 WESCO International, Inc. (NYSE:WCC) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered WESCO International, Inc. (NYSE:WCC) and shared a list of high-growth industrial stocks to buy. In addition, please check out our hedge fund investor letters Q4 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.
