Diamond Hill Capital’s Q2 2026 mid-cap fund rose 7.92%, lagging the Russell Midcap Index but benefiting from healthcare strength.
Regal Rexnord Corporation (RRX) advanced as Diamond Hill Capital’s Mid Cap Strategy posted a 7.92% return in Q2 2026, trailing the Russell Midcap Index’s 13.83% gain. Strong equity markets, driven by resilient economic growth and corporate earnings, supported performance, though AI-related stocks continued to lead sector outperformance.
Technology was the top-performing sector, while industrials also rose. Energy lagged amid declining oil prices. Healthcare holdings, including managed care and diagnostics, were the largest positive contributors, offsetting headwinds from stock selection and an underweight in information technology.
The strategy maintained caution on highly valued semiconductor and memory firms, citing concerns over extended AI spending assumptions. Management focused on high-quality companies, attractive valuations, and capital preservation while assessing AI’s long-term impact on software and services businesses.