Diamond Hill Capital, a First Eagle Investment Management company, issued its Q2 2026 investor letter for its “International Fund”. The letter can be downloaded here. The Fund returned 7.76% in the quarter, underperforming the MSCI ACWI ex USA Index’s 14.49% gain. Performance was driven by stock selection in health care and consumer discretionary sectors, while information technology and consumer staples detracted from results. During the quarter, international equities advanced, driven by AI-related semiconductor companies, with Taiwan and South Korea outperforming mixed returns in Europe and Japan. European equities benefited from positive economic indicators and easing inflation, though returns varied. Japanese stocks saw gains due to governance reforms, tempered by yen strength and global trade uncertainties. Emerging markets, led by strong demand for AI infrastructure in Taiwan and South Korea, outperformed developed markets, while Chinese markets faced declines. The information technology sector emerged as the top performer. The focus remains on finding undervalued individual companies amidst narrow market leadership, which presents both challenges and opportunities for investment. Also, check the fund’s top five holdings to see its best picks in 2026.
In its second-quarter 2026 investor letter, Diamond Hill International Fund highlighted Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) as a notable contributor to performance. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is the world’s leading contract chip manufacturer, producing advanced semiconductors for major global technology companies. On September 04, 2026, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) closed at $428.91 per share. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) returned 2.49% over the past month, and its shares gained 73.51% over the past 52 weeks. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) has a market capitalization of $1.97 Trillion.
Diamond Hill International Fund stated the following regarding Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) in its Q2 2026 investor letter:
“Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is the world’s largest dedicated chip foundry, holding approximately 70% market share and advanced manufacturing capabilities. Shares outperformed after the company announced strong demand for its semiconductor manufacturing services and increased its revenue outlook, driven by AI and high-performance computing chips.”
