Diamond Hill Capital, a <a href="https://www.insidermonkey.com/hedge-fund/first-eagle-investment-management/168/” rel=”nofollow noopener” target=”_blank”>First Eagle Investment Management company, issued its Q2 2026 investor letter for its “Select Strategy”. A copy of the letter can be downloaded here. The Strategy delivered 5.08% (net of fees) in the quarter, while the Russell 3000 Index returned 15.44%, supported by AI-driven investment, strong corporate earnings, and easing geopolitical concerns. Relative performance was pressured by limited exposure to AI beneficiaries, particularly semiconductor and memory companies, which generated significant gains during the quarter. Technology exposure remained a headwind, with software holdings impacted by uncertainty around AI disruption, although the strategy maintained conviction. Despite technology-related challenges, several of the strategy’s strongest contributors came from industrial and consumer discretionary companies, including four of its top five contributors, highlighting the benefits of its broad investment universe. You can also review the fund’s top 5 holdings to see its best picks for 2026.
In its second-quarter 2026 investor letter, Diamond Hill Select Strategy highlighted Salesforce, Inc. (NYSE:CRM). Salesforce, Inc. (NYSE:CRM) is a cloud computing company that offers Customer Relationship Management (CRM) technology that brings companies and customers together. On September 29, 2026, Salesforce, Inc. (NYSE:CRM) closed at $225.31 per share. Over the past month, Salesforce, Inc. (NYSE:CRM) declined 12.31%, and its shares are down 4.40% over the past year. Salesforce, Inc. (NYSE:CRM) has a market capitalization of $185.43 billion, with a 52-week trading range between $146.32 and $269.11.
Diamond Hill Select Strategy stated the following regarding Salesforce, Inc. (NYSE:CRM) in its Q2 2026 investor letter:
“Customer relationship management software provider Salesforce, Inc. (NYSE:CRM) saw shares decline after reporting mixed quarterly results, as industry-wide concerns persisted around customers bringing more software capabilities in-house and competition from generative AI tools.”
Salesforce, Inc. (NYSE:CRM) is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 99 hedge fund portfolios held Salesforce, Inc. (NYSE:CRM) at the end of the second quarter, which was 101 in the previous quarter. While we acknowledge the potential of Salesforce, Inc. (NYSE:CRM) 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 thebest short-term AI stock.
