Here’s Why Diamond Hill Capital Large Cap Strategy Exited International Paper Company (IP) in Q1

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Soumya Eswaran

Tue, May 26, 2026 astatine 7:02 AM CDT 3 min read

Diamond Hill Capital, a First Eagle Investment Management company, issued its Q1 2026 capitalist missive for its “Large Cap Strategy”. A transcript of the missive is disposable to download here. The Strategy declined 2.39% (net of fees), trailing the Russell 1000 Value Index’s 2.10%. The show was positively affected by banal enactment successful industrials and user discretionary, on with an underweight successful connection services. While banal enactment successful accusation technology, financials, and wellness attraction was the largest detractor from comparative performance. The warfare successful Iran is creating uncertainty successful markets. However, it efficaciously supported the portfolio’s absorption connected oil-sensitive exploration and accumulation companies. Technology companies are nether unit successful Q1 amid concerns astir AI's imaginable antagonistic effects connected their businesses, but their competitory advantages stay stronger than their existent valuations suggest. Despite these challenges, the marketplace is opening to grow into much charismatic opportunities, particularly successful antiaircraft sectors and cyclicals that bash not payment from AI. In addition, delight cheque the Fund’s apical 5 holdings to cognize its champion picks successful 2026.

In its first-quarter 2026 capitalist letter, Diamond Hill Capital Large Cap Strategy highlighted International Paper Company (NYSE:IP). International Paper Company (NYSE:IP) is simply a starring insubstantial and pulp manufacturing institution that produces and sells renewable fiber-based packaging. On May 22, 2026, International Paper Company (NYSE:IP) closed astatine $31.29 per share. One-month instrumentality of International Paper Company (NYSE:IP) was -4.17%, and its shares mislaid 34.36% implicit the past 52 weeks. International Paper Company (NYSE:IP) has a marketplace capitalization of $16.57 billion.

Diamond Hill Capital Large Cap Strategy stated the pursuing regarding International Paper Company (NYSE:IP) successful its Q1 2026 capitalist letter:

"We eliminated our presumption successful packaging company International Paper Company (NYSE:IP), arsenic the company’s fundamentals person fallen abbreviated of our expectations successful the clip we person owned it, and we decided to usage the proceeds for much charismatic opportunities."

International Paper Company (NYSE:IP) is not connected our database of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 37 hedge money portfolios held International Paper Company (NYSE:IP) astatine the extremity of the 4th quarter, up from 28 successful the erstwhile quarter. While we admit the imaginable of International Paper Company (NYSE:IP) arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you're looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.

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