Broader Macroeconomic Concerns Pressured Bank of America Corporation (BAC) Shares in Q2

Group 1: Market Overview - Diamond Hill Capital's "Select Strategy" reported a market rebound in Q2 2025, with US stocks rising approximately 11% as measured by the Russell 3000 Index [1] - Large-cap stocks experienced the highest increase, rising just over 11%, while small-cap and mid-cap stocks gained approximately 8.5% each [1] - The portfolio delivered a net return of 7.31%, trailing the Russell 3000 Index's return of 10.99% [1] Group 2: Bank of America Corporation (NYSE:BAC) - Bank of America Corporation's one-month return was 3.97%, with a 52-week gain of 33.66% [2] - As of September 29, 2025, Bank of America stock closed at $52.42 per share, with a market capitalization of $388.272 billion [2] - The company was identified as a bottom contributor in the portfolio, with shares pressured by macroeconomic concerns early in the quarter [3] - The decision was made to exit the position in Bank of America in favor of Capital One, which was believed to offer better long-term upside potential [3] Group 3: Hedge Fund Interest - Bank of America ranked 24th on the list of 30 Most Popular Stocks Among Hedge Funds, with 115 hedge fund portfolios holding the stock at the end of Q2, down from 117 in the previous quarter [4] - While Bank of America is acknowledged as a potential investment, certain AI stocks are believed to offer greater upside potential and less downside risk [4]