Diamond Hill Capital, a First Eagle Investment Management company, reported that its Large Cap Strategy returned 3.18% net of fees in the third quarter of 2026, outperforming the Russell 1000 Value Index’s 2.61% return. Stock selection in information technology, an underweight in utilities and an overweight in energy supported performance, while industrials, health care and consumer staples detracted. The firm expects below-average returns ahead because equity-market valuations are high, although it continues to identify attractive bottom-up opportunities. Software and legacy technology stocks outperformed in the quarter despite recent index exclusions, while some AI-related stocks that had previously lifted the index lagged. Chevron Corporation was newly added to the strategy because of its exposure to higher oil prices and refining margins, as well as potential production growth in Venezuela. Chevron closed at $219.32 on October 15, 2026, with a $424.79 billion market capitalization, and was held by 101 hedge fund portfolios at the end of the second quarter, down from 103 previously. Salesforce, Microsoft and Builders FirstSource were also among the strategy’s highlighted holdings.