Diamond Hill Capital released its first-quarter 2025 investor letter, reporting a 2.87% return (net) for its Large Cap Fund. The fund modestly trailed the Russell 1000 Value Index in the second quarter, with financial and consumer discretionary holdings lagging. Healthcare and communication services outperformed, boosting overall performance. Check out the fund’s top 5 positions for 2025.

In its second-quarter 2025 investor letter, Diamond Hill Large Cap Fund highlighted Ferguson Enterprises Inc. (NYSE:FERG), a plumbing and heating products distributor. The stock had a one-month return of -0.67% and gained 12.95% over the last 52 weeks. On August 7, 2025, shares closed at $222.90 with a market cap of $44.733 billion.

Diamond Hill Large Cap Fund praised Ferguson Enterprises Inc. (NYSE:FERG) in its Q2 2025 letter, citing competitive advantages in large projects and the HVAC market. The company is benefiting from diminished commodity deflation and margin expansion opportunities in a fragmented industry. Shares received a boost, and further growth potential is expected.

Ferguson Enterprises Inc. (NYSE:FERG) saw an increase in hedge fund portfolios holding the stock from 72 to 75 in the first quarter. With reported sales of $7.6 billion in the fiscal third quarter of 2025, representing a 4.3% increase over the prior year, the company continues to show growth potential. Investors seeking undervalued AI stocks may find other opportunities with greater upside potential and less downside risk.

Read more at Yahoo Finance: Here’s What Lifted Ferguson Enterprises (FERG) in Q2