Diamond Hill Mid Cap Strategy Details Q3 2025 Miss and Portfolio Moves in New Letter

Overview

• Diamond Hill reported a 4.49% net return for Q3 2025 versus 5.33% for the Russell Midcap Index as U.S. stocks broadly rallied, with small caps up more than 12% and mid caps up about 5%.
• Fidelity National Information Services was sold due to slowing revenue growth, weak free‑cash‑flow conversion, and rising concerns about management execution in a shifting bank‑technology landscape.
• Revvity was added as a new holding based on an upgraded, higher‑margin product mix and a purchase price below the manager’s intrinsic value estimate during biopharma policy uncertainty.
• GoDaddy was a bottom contributor as sales slowed and its customer base contracted, with investors evaluating potential longer‑term effects from AI on the business.
• Freeport‑McMoRan’s Grasberg Block Caves mine suffered a September mudslide that killed seven workers, cut Q3 output, and is expected to recover production gradually through 2026 with a return to pre‑incident levels by 2027.