Diamond Hill Capital, a First Eagle Investment Management company, issued its Q1 2026 investor letter for its “Large Cap Strategy”. A copy of the letter is available to download here. The Strategy declined 2.39% (net of fees), trailing the Russell 1000 Value Index’s 2.10%. The performance was positively affected by stock selection in industrials and consumer discretionary, along with an underweight in communication services. While stock selection in information technology, financials, and health care was the largest detractor from relative performance. The war in Iran is creating uncertainty in markets. However, it effectively supported the portfolio’s focus on oil-sensitive exploration and production companies. Technology companies are under pressure in Q1 amid concerns about AI’s potential negative effects on their businesses, but their competitive advantages remain stronger than their current valuations suggest. Despite these challenges, the market is beginning to expand into more attractive opportunities, especially in defensive sectors and cyclicals that do not benefit from AI. In addition, please check the Fund’s top five holdings to know its best picks in 2026.
In its first-quarter 2026 investor letter, Diamond Hill Capital Large Cap Strategy highlighted Carrier Global Corporation (NYSE:CARR) as a newly added position. Carrier Global Corporation (NYSE:CARR) is an intelligent climate and energy solutions provider that operates through Heating, Ventilating, and Air Conditioning (HVAC) and Refrigeration segments. On May 22, 2026, Carrier Global Corporation (NYSE:CARR) closed at $63.14 per share. One-month return of Carrier Global Corporation (NYSE:CARR) was 1.99%, and its shares lost 11.05% over the past 52 weeks. Carrier Global Corporation (NYSE:CARR) has a market capitalization of $52.44 billion.
Diamond Hill Capital Large Cap Strategy stated the following regarding Carrier Global Corporation (NYSE:CARR) in its Q1 2026 investor letter:
“Following its March 2020 spin-off from United Technologies, residential and commercial HVAC provider Carrier Global Corporation (NYSE:CARR) is now a focused, high-quality business that we believe is in an excellent position to continue to gain market share and improve margins long term. However, a cyclical downturn in residential markets has weighed on near-term results, creating an opportunity to initiate a position at a significant discount to our estimate of intrinsic value.”
Carrier Global Corporation (NYSE:CARR) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 59 hedge fund portfolios held Carrier Global Corporation (NYSE:CARR) at the end of the fourth quarter, up from 48 in the previous quarter. In Q1 2026, Carrier Global Corporation’s (NYSE:CARR) reported sales were $5.3 billion, adjusted operating profit was $594 million, and adjusted EPS was $0.57. While we acknowledge the potential of Carrier Global Corporation (NYSE:CARR) 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.
