Here’s Why Rocket Companies (RKT) Slipped in Q4

Core Insights - Diamond Hill Capital's "Small Cap Strategy" reported a favorable performance in Q4 2025, with the Russell 2000 Index gaining 2.19% and a yearly gain of 12.81% [1] - The health care sector was the best performer in the Russell 2000 Index, with an increase of 18.6% [1] - The Strategy outperformed the Russell 2000 Index with a return of 4.88% (net of fees) in the quarter [1] Company-Specific Insights - Rocket Companies, Inc. (NYSE:RKT) was highlighted as a leading detractor in the fourth-quarter report, with a recent stock price of $20.00 per share and a monthly return of -5.84% [2] - Despite the recent underperformance, Rocket Companies, Inc. has seen a significant increase of 51.75% in its stock price over the past twelve months, with a market capitalization of $56.318 billion [2] - The underperformance of Rocket Companies, Inc. is attributed to changing market expectations regarding interest rates, which are crucial for its mortgage origination business [3] Hedge Fund Interest - Rocket Companies, Inc. is not among the 30 most popular stocks among hedge funds, although it was held by 77 hedge fund portfolios at the end of Q3 2025, an increase from 56 in the previous quarter [4] - The company is viewed as having potential, but certain AI stocks are considered to offer greater upside potential with less downside risk [4]