Diamond Hill Capital, a First Eagle Investment Management company, issued its Q3 2026 investor letter for its “Large Cap Strategy”. The letter can be downloaded here. The Strategy returned 3.18% (net of fees) in the quarter, outperforming the 2.61% return of the Russell 1000 Value Index. Key positive contributors included stock selection in information technology, an underweight in utilities, and an overweight in energy, while detractors were found in industrials, health care, and consumer staples. Looking ahead, the firm anticipates below-average returns due to high equity market valuations, although attractive bottom-up investment opportunities remain. Notably, software and legacy technology stocks outperformed in Q3 2026, despite recent index exclusions; some AI-related stocks that had boosted the index previously underperformed. Additionally, reviewing the Strategy’s top five holdings provides insight into its best positions for 2026.
In its Q3 2026 investor letter, Diamond Hill Capital Large Cap Strategy highlighted Chevron Corporation (NYSE:CVX) as a newly added position. Chevron Corporation (NYSE:CVX) engages in integrated energy and chemicals operations. On October 15, 2026, Chevron Corporation (NYSE:CVX) closed at $219.32 per share. Over the past month, Chevron Corporation (NYSE:CVX) declined 1.27%, and its shares gained 46.33% over the past 52 weeks. Chevron Corporation (NYSE:CVX) has a market capitalization of $424.79 billion with a 52-week trading range between $146.49 and $223.46.
Diamond Hill Capital Large Cap Strategy stated the following regarding Chevron Corporation (NYSE:CVX) in its Q3 2026 investor letter:
“We added energy company Chevron Corporation (NYSE:CVX) to the portfolio given its leverage to higher oil prices and refining margins, which benefited from renewed hostilities in the Middle East and continued tightness in the refinery complex. We also viewed the company’s plans to increase production in Venezuela following the Trump administration’s oil agreement as a potential source of additional growth.”
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Chevron Corporation is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 101 hedge fund portfolios held Chevron Corporation at the end of the second quarter which was 103 in the previous quarter. While we acknowledge the potential of Chevron Corporation (NYSE:CVX) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
Source: finance.yahoo.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.
