Diamond Hill Capital, a First Eagle Investment Management company, issued its Q2 2026 investor letter for its “Large Cap Strategy”. A copy of the letter is available to download here. The Strategy returned 3.42% net of fees, trailing the Russell 1000 Value Index’s 13.87% gain. Performance benefited from stock selection in consumer staples, materials and consumer discretionary, along with an underweight in utilities. However, stock selection in information technology, health care and industrials detracted from relative performance. AI remained the dominant market theme, driving an 81% gain in technology, while energy declined after the Iran war ended and oil prices fell. The Strategy’s limited exposure to companies benefiting from AI-related capital spending caused most of its underperformance, while software holdings remained pressured by concerns about AI disruption. Despite elevated market valuations, the team continues to find attractive opportunities through bottom-up research and expects active management to support better-than-market returns. In addition, please check the Strategy’s top five holdings to know its best picks in 2026.
In its second-quarter 2026 investor letter, Diamond Hill Capital Large Cap Strategy highlighted Texas Instruments Incorporated (NASDAQ:TXN). Texas Instruments Incorporated (NASDAQ:TXN) designs, manufactures, and sells semiconductors to electronics designers and manufacturers in the United States and internationally. On July 31, 2026, Texas Instruments Incorporated (NASDAQ:TXN) closed at $275.74 per share. One-month return of Texas Instruments Incorporated (NASDAQ:TXN) was -11.14% and its shares gained 46.20% over the past 52 weeks. Texas Instruments Incorporated (NASDAQ:TXN) has a market capitalization of $251.82 billion.
Diamond Hill Capital Large Cap Strategy stated the following regarding Texas Instruments Incorporated (NASDAQ:TXN) in its Q2 2026 investor letter:
“Semiconductor and processor producer Texas Instruments Incorporated (NASDAQ:TXN) saw shares rise after issuing 2Q26 guidance above market expectations, signaling improving demand trends, particularly in industrial and data center end markets.”
Texas Instruments Incorporated (NASDAQ:TXN) is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 71 hedge fund portfolios held Texas Instruments Incorporated (NASDAQ:TXN) at the end of the first quarter which was 78 in the previous quarter. While we acknowledge the risk and potential of Texas Instruments Incorporated (NASDAQ:TXN) 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 Texas Instruments Incorporated (NASDAQ:TXN) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Texas Instruments Incorporated (NASDAQ:TXN) and shared the list of best stocks to buy according to David Greenspan’s Slate Path Capital. In addition, please check out our hedge fund investor letters Q2 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.
