Diamond Hill’s Q3 Letter Shows Fund Lagging as New Stakes Include FedEx, Thermo Fisher, Zoetis and Equitable

Overview

• Despite the Russell 3000 gaining 8% in Q3 and topping 14% for the year, Diamond Hill’s Large Cap Fund declined and trailed its value benchmark.
• The fund initiated four positions during the quarter, adding FedEx, Thermo Fisher Scientific, Zoetis and Equitable Holdings.
• General Motors was a top contributor as tariff clarity improved business visibility and investors eyed potential rate cuts, alongside gains from L3Harris, Caterpillar and Sysco.
• Lululemon was among the largest detractors and the fund exited the position after merchandise missteps, rising competition, shifting trends and tariff changes including the end of the de minimis exemption.
• Texas Instruments weighed on results as industrial and automotive demand recovered slower than expected, though the manager reiterated confidence in the company’s advantages.