Diamond Hill Capital, a First Eagle Investment Management company, issued its Q2 2026 investor letter for its “Mid Cap Strategy”. A copy of the Q2 2026 investor letter can be downloaded here. In the quarter, equity markets posted strong returns as resilient economic growth and robust corporate earnings supported investor sentiment, although AI-related companies continued to dominate market leadership. Technology was the strongest-performing sector, while industrials also advanced and energy lagged as oil prices declined. The Fund returned 7.92% and the Russell Midcap Index returned 13.83%. Health care holdings were the largest positive contributor, supported by strength across managed care, diagnostics, and life sciences. However, stock selection and an underweight position in information technology remained the main relative headwinds. The strategy maintained limited exposure to highly valued semiconductor and memory companies, reflecting concerns that current valuations assume an extended period of elevated AI spending. It also continued to assess software and services businesses individually based on how AI may affect their long-term competitive positions. Management emphasized higher-quality companies, attractive valuations, capital preservation, and durable long-term compounding while remaining cautious about elevated valuations, concentrated leadership, and the sustainability of the current AI investment cycle. Please review the Strategy’s top five holdings for its key selections.
In its second-quarter 2026 investor letter, Diamond Hill Capital Mid Cap Strategy highlighted Verisk Analytics, Inc. (NASDAQ:VRSK) as a newly added position. Verisk Analytics, Inc. (NASDAQ:VRSK) is a US-based technology company that offers data analytics and technology solutions to the insurance industry. On August 4, 2026, Verisk Analytics, Inc. (NASDAQ:VRSK) closed at $192.80 per share. One-month return of Verisk Analytics, Inc. (NASDAQ:VRSK) was 1.65% and its shares gained -27.24% over the past 52 weeks. Verisk Analytics, Inc. (NASDAQ:VRSK) has a market capitalization of $25.13 billion with a 52-week trading range between $155.94 – $276.19.
Diamond Hill Capital Mid Cap Strategy stated the following regarding Verisk Analytics, Inc. (NASDAQ:VRSK) in its Q2 2026 investor letter:
“Verisk Analytics, Inc. (NASDAQ:VRSK), the leading provider of data and analytics to the insurance industry, benefits from a market position with limited competition. We initiated a position as its services represent a small portion of customers’ overall costs but are deeply embedded in their workflows and critical to their operations, supporting consistent revenue growth, strong margins and sustained pricing power.”
