Diamond Hill Capital released its second-quarter 2025 investor letter, noting a market rebound post-“Liberation Day” tariffs announcement. US stocks rose approximately 11%, with large-cap stocks leading at just over 11%. The portfolio returned 7.31% (net) vs 10.99% for the Russell 3000 Index. Check out the fund’s top 5 positions for 2025.

In its investor letter, Diamond Hill Capital highlighted Bank of America Corporation (NYSE:BAC), a financial institution offering various services. BAC’s one-month return was 3.97%, with shares gaining 33.66% over 52 weeks. On Sept 29, 2025, BAC closed at $52.42 per share, with a market cap of $388.272 billion.

Diamond Hill Capital mentioned BAC in its Q2 2025 letter as a bottom contributor due to early pressures. They exited to manage exposure in favor of Capital One for better long-term potential, impacting Q2 performance. BAC ranks 24th among the 30 most popular stocks among hedge funds.

BAC was held in 115 hedge fund portfolios by the end of Q2, down from 117 in the previous quarter. While acknowledging BAC’s potential, Diamond Hill Capital sees greater upside in certain AI stocks with less downside risk. For an undervalued AI stock with potential in the current market, check out their free report.

Read more at Yahoo Finance: Broader Macroeconomic Concerns Pressured Bank of America Corporation (BAC) Shares in Q2