Diamond Hill Capital, an funding administration firm, launched its “Small Cap Fund” first-quarter 2025 investor letter. A duplicate of the letter will be downloaded right here. In Q1, markets have been uneven because of the new presidential administration’s exercise, resulting in concern concerning the future. The Russell 3000 Index fell by 4.7% in Q1, the primary quarterly loss since Q3 2023. Diamond Hill Small Cap Fund returned -11.56% in Q1, trailing the Russell 2000 Index’s -9.48% return. For extra info on the fund’s high picks in 2025, please examine its high 5 holdings.
In its first-quarter 2025 investor letter, Diamond Hill Small Cap Fund highlighted shares akin to First Benefit Company (NASDAQ:FA). First Benefit Company (NASDAQ:FA) is a worldwide supplier of employment background screening, id, and verification options. The one-month return of First Benefit Company (NASDAQ:FA) was 11.66%, and its shares misplaced 10.59% of their worth during the last 52 weeks. On Could 05, 2024, First Benefit Company (NASDAQ:FA) inventory closed at $14.83 per share with a market capitalization of $2.575 billion.
Diamond Hill Small Cap Fund said the next concerning First Benefit Company (NASDAQ:FA) in its Q1 2025 investor letter:
“Different backside Q1 contributors included First Benefit Company (NASDAQ:FA), Civitas Assets and Allegiant Journey. First Benefit, which gives employment background screening, id and verification options, faces stress associated to the unsure macroeconomic surroundings, which may weigh on demand for background screenings in 2025. Additional, it’s amid its integration of current acquisition Sterling Examine Corp., which has leveraged the steadiness sheet in the meanwhile.”
A detailed-up of the fingers of a technician scanning an ID, verifying the Enrollment Verification course of.
First Benefit Company (NASDAQ:FA) is just not on our record of 30 Most In style Shares Amongst Hedge Funds. As per our database, 16 hedge fund portfolios held First Benefit Company (NASDAQ:FA) on the finish of the fourth quarter, in comparison with 15 within the third quarter. First Benefit Company’s (NASDAQ:FA) professional forma revenues for the fourth quarter of 2024 have been $375 million, up 0.9% year-over-year. Whereas we acknowledge the potential of First Benefit Company (NASDAQ:FA) as an funding, our conviction lies within the perception that AI shares maintain larger promise for delivering larger returns, and doing so inside a shorter timeframe. If you’re in search of an AI inventory that’s as promising as NVIDIA however that trades at lower than 5 instances its earnings, take a look at our report concerning the most cost-effective AI inventory.
