Overview
- Diamond Hill published its Q1 2026 Select Strategy investor letter Tuesday reporting the strategy fell 0.52% net while the Russell 3000 dropped 3.96%, and the firm cited stock selection and sector weightings as key drivers.
- The firm initiated a new position in Equitable Holdings after Equitable announced an all-stock merger with Corebridge, saying the deal created an attractive entry by combining annuities and retirement businesses into a larger platform.
- Diamond Hill said American International Group’s earlier rally from takeover talk faded after the company announced a CEO succession plan in early January, which investors interpreted as reducing the likelihood of an acquisition and removing the deal premium.
- The letter warns that geopolitical developments in the Middle East and changing expectations about artificial intelligence are increasing market uncertainty and that the team is favoring large-cap, cash-generating, defensive businesses.
- Publisher data cited in the coverage showed hedge fund ownership rising at quarter end for both Equitable and AIG, a sign that growing institutional interest could affect these stocks’ liquidity and future takeover or restructuring pressure.