Diamond Hill Capital, a First Eagle Investment Management company, reported that its Select Strategy returned 5.08% net of fees in the second quarter of 2026, compared with a 15.44% gain for the Russell 3000 Index. The benchmark benefited from AI-driven investment, strong corporate earnings and easing geopolitical concerns. Relative performance was hurt by limited exposure to AI beneficiaries, particularly semiconductor and memory companies, while software holdings faced uncertainty over potential AI disruption. Industrial and consumer discretionary companies accounted for four of the strategy’s five largest contributors. The Q2 2026 investor letter highlighted Red Rock Resorts, Inc. (NASDAQ:RRR), whose shares closed at $48.85 on September 29, 2026, and said property renovations and Phase 3 construction at Durango were progressing as planned. The letter also cited the potential benefit of lower oil and gasoline prices to consumer discretionary spending. Red Rock Resorts had a market capitalization of $5.13 billion, a one-month return of -14.06% and a 52-week decline of 19.59%. The company was held by 25 hedge fund portfolios at the end of the second quarter, down from 30 in the previous quarter, and was not among the 40 most popular stocks among hedge funds. The existing coverage also highlighted Salesforce, Inc. (NYSE:CRM), whose shares closed at $225.31, and reported that Diamond Hill initiated a position in Molina Healthcare, Inc. (NYSE:MOH), which closed at $189.38, on the same date. Both companies were outside the 40 most popular stocks among hedge funds.