Stabilized Volume Boosted General Motors (GM)

Diamond Hill Capital, an investment management company, released its “Large Cap Fund” fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. Equity markets continued their upward momentum in Q4, with the Russell 1000 Value Index increasing 3.8%. The information technology (+11%) and communication services (+9%) sectors are leading the rally, driven by AI optimism. The growth areas of the market accounted for the majority of the Index’s return in Q4. The firm maintains a cautious stance toward AI-driven market enthusiasm and believes that, fundamentally stable, high-quality, cash-generative businesses present attractive opportunities. Against this backdrop, the Fund returned 1.41% in the quarter, lagging the Russell 1000 Value Index’s 3.8% return. In addition, you can check the Fund’s top five holdings to see its best picks for 2025.

In its fourth-quarter 2025 investor letter, Diamond Hill Large Cap Fund highlighted General Motors Company (NYSE:GM). General Motors Company (NYSE:GM) is a leading automobile manufacturer with diverse brands and a significant contributor to the fund’s performance in the quarter. The one-month return of General Motors Company (NYSE:GM) was 2.54%, and its shares gained 73.50% of their value over the last 52 weeks. On January 29, 2026, General Motors Company (NYSE:GM) stock closed at $84.27 per share, with a market capitalization of $78.612 billion.

Diamond Hill Large Cap Fund stated the following regarding General Motors Company (NYSE:GM) in its fourth quarter 2025 investor letter:

“Automobile manufacturer General Motors Company (NYSE:GM) saw strong results as volumes have stabilized across the auto industry. The company has also taken market share while maintaining pricing and growing in the electric vehicle and software services spaces.”

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General Motors Company (NYSE:GM) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 71 hedge fund portfolios held General Motors Company (NYSE:GM) at the end of the third quarter, the same as in the previous quarter. While we acknowledge the risk and potential of General Motors Company (NYSE:GM) 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 General Motors Company (NYSE:GM) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered General Motors Company (NYSE:GM) and shared the list of most undervalued large cap stocks to invest. General Motors Company (NYSE:GM) contributed to Hotchkis & Wiley Large Cap Disciplined Value Fund’s performance in Q4 2025 after its biggest single day gain since 2020. 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.