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Diamond Hill Capital, a First Eagle Investment Management company, issued its Q1 2026 investor letter for its “Small Cap Strategy”. A copy of the letter can be downloaded here. Small caps started 2026 strong, following 2025, but pulled back late in the quarter due to geopolitical tensions, with the US and Israel acting against Iran. The Russell 2000 gained 0.89%, outperforming the Russell 1000’s 4.18% decline. Energy was the leading sector, up 38% as oil prices surged amid supply fears. The strategy returned 3.41% (net) vs. the Russell 2000’s 0.89%. The Fund focuses on resilient businesses amid volatility, aiming to navigate uncertainty and capitalize on market opportunities. In addition, please check the Strategy’s top five holdings to know its best picks in 2026.
In its first-quarter 2026 investor letter, Diamond Hill Small Cap Strategy highlighted stocks like Proficient Auto Logistics, Inc. (NASDAQ:PAL). Proficient Auto Logistics, Inc. (NASDAQ:PAL) is a North America based leading auto transportation and logistics company. On May 4, 2026, Proficient Auto Logistics, Inc. (NASDAQ:PAL) closed at $7.19 per share. One-month return of Proficient Auto Logistics, Inc. (NASDAQ:PAL) was 4.05%, and its shares lost 11.67% over the past 52 weeks. Proficient Auto Logistics, Inc. (NASDAQ:PAL) has a market capitalization of $199.35 million.
Diamond Hill Small Cap Strategy stated the following regarding Proficient Auto Logistics, Inc. (NASDAQ:PAL) in its Q1 2026 investor letter:
"Proficient Auto Logistics, Inc. (NASDAQ:PAL) is one of the largest auto transport companies in the US and has played a leading role in consolidating the industry, bringing together several non-union carriers nationwide. The company has broad geographic coverage and meaningful contracts with multiple auto manufacturers. Rising oil prices and macroeconomic uncertainty have recently pressured auto sales and weighed on performance, but we continue to believe the company is well-positioned to outperform over the long-term, supported by its cost advantage, strong balance sheet and high-quality management team."
Proficient Auto Logistics, Inc. (NASDAQ:PAL) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 13 hedge fund portfolios held Proficient Auto Logistics, Inc. (NASDAQ:PAL) at the end of the fourth quarter, up from 10 in the previous quarter. While we acknowledge the potential of Proficient Auto Logistics, Inc. (NASDAQ:PAL) 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 the best short-term AI stock.
In addition, please check out our hedge fund investor letters Q1 2026 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.