Diamond Hill Capital, a First Eagle Investment Management company, initiated a position in Molina Healthcare during the second quarter of 2026, according to its Select Strategy investor letter. The strategy returned 5.08% net of fees for the quarter, versus a 15.44% gain for the Russell 3000 Index, which benefited from AI-driven investment, strong corporate earnings and easing geopolitical concerns. Relative performance suffered from limited exposure to AI beneficiaries, especially semiconductor and memory companies, while software holdings faced uncertainty over AI disruption. The strategy retained conviction in its technology investments, and industrial and consumer discretionary companies accounted for four of its five largest contributors. Molina Healthcare, a managed care provider, closed at $189.38 on September 29, 2026, giving it a market capitalization of $9.89 billion. Its shares returned -6.53% over one month and -1.77% over 52 weeks. Diamond Hill said rising medical costs and lower government reimbursement had pressured Molina's margins, but it expects reimbursement rates to catch up with underlying cost trends across the insured population over time. Molina was held by 48 hedge fund portfolios at the end of the second quarter, down from 51 in the previous quarter, and was not among the 40 Most Popular Stocks Among Hedge Funds. The article also points readers to related coverage, AI-stock research, additional Q2 2026 investor letters and lists of stocks that could double in three years or create wealth over 10 years.