In This Article:
Diamond Hill Capital, an investment management company, released its “Small Cap Fund” first-quarter 2025 investor letter. A copy of the letter can be downloaded here. In Q1, markets were uneven due to the new presidential administration’s activity, leading to concern about the future. The Russell 3000 Index fell by 4.7% in Q1, the first 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 more information on the fund’s top picks in 2025, please check its top five holdings.
In its first-quarter 2025 investor letter, Diamond Hill Small Cap Fund highlighted stocks such as Avanos Medical, Inc. (NYSE:AVNS). Avanos Medical, Inc. (NYSE:AVNS) is a medical technology company that offers medical device solutions. The one-month return of Avanos Medical, Inc. (NYSE:AVNS) was -1.61%, and its shares lost 37.62% of their value over the last 52 weeks. On May 5, 2025, Avanos Medical, Inc. (NYSE:AVNS) stock closed at $12.19 per share with a market capitalization of $560.779 million.
Diamond Hill Small Cap Fund stated the following regarding Avanos Medical, Inc. (NYSE:AVNS) in its Q1 2025 investor letter:
"As volatility picked up sharply in the quarter, we were active in the portfolio — and we anticipate that as volatility continues into Q2, we will likewise attempt to capitalize on compelling opportunities to reposition the portfolio for the period ahead. We initiated three new positions in Q1, including in Helios Technologies, Titan America and Avanos Medical, Inc. (NYSE:AVNS).
A medical professional using a chronic care product in a hospital.