Overview

• The strategy returned 7.31% net in Q2 2025, underperforming the Russell 3000’s 10.99% gain during the quarter’s rebound.
• Management attributed the quarter’s setup to a sharp early-April downturn tied to the President’s “Liberation Day” tariffs followed by an approximately 11% recovery in U.S. stocks.
• New positions included Salesforce and Antero Resources, with Diamond Hill citing compelling valuations and an outlook for Salesforce revenue growth and margins to reaccelerate as recent headwinds ease.
• The fund exited Bank of America to pare banking exposure in favor of Capital One, noting the timing of the switch hurt relative performance as Bank of America was a bottom contributor.
• Top contributors included Coherent and Regal Rexnord, with Coherent benefiting from rising data-center demand for optical transceivers, while Lululemon and CarMax were among detractors; public summaries also reported hedge-fund ownership counts for the highlighted stocks.