Diamond Hill Capital, an investment management company, released its “Small-Mid Cap Fund” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. In Q2, the market surged uniformly for the rest of the quarter following a sharp decline in April due to President Trump’s “Liberation Day” tariffs announcement. The portfolio returned 5.60% (gross) and 5.37% (net) compared to an 8.59% return for the Russell 2500 Index. For more information on the fund’s top picks in 2025, please check its top five holdings.
In its second-quarter 2025 investor letter, Diamond Hill Small-Mid Cap Fund highlighted stocks such as Century Communities, Inc. (NYSE:CCS). Headquartered in Greenwood Village, Colorado, Century Communities, Inc. (NYSE:CCS) is a single-family attached and detached home builder. The one-month return of Century Communities, Inc. (NYSE:CCS) was 11.52%, and its shares lost 30.06% of their value over the last 52 weeks. On August 15, 2025, Century Communities, Inc. (NYSE:CCS) stock closed at $65.45 per share, with a market capitalization of $1.943 billion.
Diamond Hill Small-Mid Cap Fund stated the following regarding Century Communities, Inc. (NYSE:CCS) in its second quarter 2025 investor letter:
“Despite markets’ relatively sharp bounce following April’s downward volatility, we were able to initiate several new positions in the quarter at what we consider compelling valuations: Generac Holdings, Alaska Air Group, Knife River Corporation, Taseko Mines, Century Communities, Inc. (NYSE:CCS) and FTI Consulting.
A construction site with new single-family homes framing the horizon.
Century Communities, Inc. (NYSE:CCS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 27 hedge fund portfolios held Century Communities, Inc. (NYSE:CCS) at the end of the first quarter, which was 27 in the previous quarter. While we acknowledge the potential of Century Communities, Inc. (NYSE:CCS) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
