Overview
- Diamond Hill said the relative shortfall reflected a quarter led by sectors the strategy typically does not own, as detailed in its Q3 2025 investor letter.
- Top contributors included United States Lime & Minerals, Red Rock Resorts and Ducommun, with USLM benefiting from construction, environmental and steel demand as well as infrastructure projects in Louisiana and Texas.
- Bottom contributors included Triumph Financial and Ryman Hospitality Properties; Triumph was pressured by a freight recession and a high-profile bankruptcy exposure, while Ryman faced mixed fundamentals and concerns about its transient business, with long-term conviction maintained.
- The firm reported initiating a new Q3 position in Hurco Companies after finding fewer immediately actionable ideas as valuations rose.
- As of November 24, USLM closed at $121.21 (one-month -6.14%, 52-week -23.02%), RHP at $94.02 (+8.73%, -19.67%), and TFIN at $53.53 (-8.84%, -50.81%).