Diamond Hill Large Cap Fund Bets on EQT (EQT) Citing Strong Natural Gas Demand Prospectus

Core Viewpoint - Diamond Hill Capital's "Large Cap Fund" investor letter for Q4 2025 highlights a cautious stance on AI-driven market enthusiasm while emphasizing the attractiveness of fundamentally stable, high-quality, cash-generative businesses [1]. Group 1: Market Overview - Equity markets showed upward momentum in Q4 2025, with the Russell 1000 Value Index increasing by 3.8% [1]. - The information technology sector rose by 11%, and communication services increased by 9%, primarily driven by optimism surrounding AI [1]. - The growth areas of the market contributed significantly to the Index's return in Q4 [1]. Group 2: Fund Performance - The Diamond Hill Large Cap Fund returned 1.41% in Q4 2025, underperforming compared to the Russell 1000 Value Index's 3.8% return [1]. Group 3: EQT Corporation Highlights - EQT Corporation (NYSE:EQT) was introduced as a new addition to the fund, recognized as a leading natural gas producer with a market capitalization of $34.168 billion [2]. - EQT's stock closed at $54.75 per share on February 2, 2026, with a 2.51% return over the past month and a 4.99% increase over the past twelve months [2]. - EQT is noted as the lowest-cost dry gas producer in Appalachia, benefiting from structural advantages such as scale and contiguous acreage [3]. Group 4: Hedge Fund Interest - EQT Corporation is not among the 30 most popular stocks among hedge funds, with 82 hedge fund portfolios holding EQT at the end of Q3 2025, down from 96 in the previous quarter [4]. - While EQT is acknowledged for its investment potential, the company is compared unfavorably to certain AI stocks that are perceived to offer greater upside potential and lower downside risk [4].