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 stocks like Utz Brands, Inc. (NYSE:UTZ). Utz Brands, Inc. (NYSE:UTZ) is an American snack food company headquartered in Hanover, Pennsylvania. On May 4, 2026, Utz Brands, Inc. (NYSE:UTZ) closed at $7.69 per share. One-month return of Utz Brands, Inc. (NYSE:UTZ) was -0.39%, and its shares lost 36.55% over the past 52 weeks. Utz Brands, Inc. (NYSE:UTZ) has a market capitalization of $1.11 billion.
Diamond Hill Small Cap Strategy stated the following regarding Utz Brands, Inc. (NYSE:UTZ) in its Q1 2026 investor letter:
“Shares of snack manufacturer Utz Brands, Inc. (NYSE:UTZ) declined after issuing Q1 guidance that was below expectations, although we believe this guidance is obscuring underlying operational progress. More broadly, the category remains pressured given the adoption of GLP-1 medications, disruption to SNAP benefits and increasing competition in the space, while higher oil prices are adding pressure through freight costs and weaker consumer sentiment.”
Utz Brands, Inc. (NYSE:UTZ) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 31 hedge fund portfolios held Utz Brands, Inc. (NYSE:UTZ) at the end of the fourth quarter, up from 16 in the previous quarter. While we acknowledge the risk and potential of Utz Brands, Inc. (NYSE:UTZ) 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 Utz Brands, Inc. (NYSE:UTZ) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Utz Brands, Inc. (NYSE:UTZ) and shared the list of best all time low stocks to buy in 2026. 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.
