Diamond Hill Capital released its fourth-quarter 2025 investor letter, highlighting a 2.19% gain in the Russell 2000 Index and a 18.6% increase in the health care sector. The Strategy returned 4.88% in the quarter, focusing on resilient businesses for 2026. Alexandria Real Estate Equities, Inc. was a key stock pick, delivering a 3.83% return in the past month.

The firm initiated a position in Alexandria Real Estate Equities, Inc. during Q4 2025, citing the company’s solid balance sheet and discounted shares due to regulatory pressures. Alexandria Real Estate Equities, Inc. closed at $55.31 per share on February 4, 2026, with a market capitalization of $9.585 billion. The stock is down 42.76% over the past twelve months.

Despite not being among the 30 Most Popular Stocks Among Hedge Funds, 31 hedge fund portfolios held Alexandria Real Estate Equities, Inc. at the end of Q3 2025. The company’s potential as an investment is acknowledged, but certain AI stocks are seen to offer greater upside potential. For those seeking an undervalued AI stock benefitting from current trends, a free report is available.

Read more at Yahoo Finance: Diamond Hill Small Cap Strategy Bets on Deeply Discounted Alexandria Real Estate Equities (ARE). Here’s Why