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]. Market Overview - Equity markets showed upward momentum in Q4 2025, with the Russell 1000 Value Index increasing by 3.8% - The information technology sector rose by 11%, and communication services increased by 9%, primarily driven by optimism surrounding AI [1]. Fund Performance - The Diamond Hill Large Cap Fund returned 1.41% in Q4 2025, underperforming the Russell 1000 Value Index's 3.8% return [1]. Company Focus: Dover Corporation - Dover Corporation (NYSE:DOV) was highlighted as a new addition to the fund, recognized as a leading diversified industrial company with a market capitalization of $28.435 billion [2]. - Dover Corporation's stock closed at $207.32 per share on February 2, 2026, with a 1.88% return over the past month and a 2.17% increase over the past twelve months [2]. Strategic Transition of Dover Corporation - Dover Corporation is undergoing a transition from a merger-and-acquisition-focused holding company to an execution-focused operating company, which is expected to lead to continued margin expansion [3]. - Recent portfolio adjustments have increased Dover's exposure to higher growth end markets, and cyclical headwinds are anticipated to subside after years of sluggish growth [3]. - The stock is currently trading at a significant discount to the estimated intrinsic value, prompting the initiation of a position in the company [3]. Hedge Fund Interest - Dover Corporation is not among the 30 most popular stocks among hedge funds, with 55 hedge fund portfolios holding the stock at the end of Q3 2025, up from 47 in the previous quarter [4]. - While acknowledging Dover's potential, the company believes certain AI stocks may offer greater upside potential with less downside risk [4].

Core Viewpoint - Wall Street analysts anticipate 3M (MMM) to report quarterly earnings of $1.82 per share, reflecting an 8.3% year-over-year increase, with revenues expected to reach $6.08 billion, up 4.6% from the previous year [1] Earnings Estimates - Changes in earnings estimates are critical for predicting investor reactions to the stock, with empirical studies showing a strong correlation between earnings estimate revisions and short-term stock performance [2] Analyst Forecasts - Analysts project 'Net Sales- Safety and Industrial' to be $2.86 billion, indicating a year-over-year increase of 5.6% [4] - The consensus for 'Net Sales- Corporate and Unallocated' is $84.00 million, reflecting a 7.7% increase from the year-ago quarter [4] - 'Net Sales- Consumer' is expected to reach $1.24 billion, suggesting a 0.7% year-over-year change [4] Operating Income Estimates - 'Net Sales- Transportation and Electronics' is forecasted at $1.87 billion, indicating a year-over-year decline of 6.2% [5] - The estimated 'Operating Income (non-GAAP measures)- Consumer' is $241.58 million, compared to $234.00 million from the previous year [5] - 'Operating Income (non-GAAP measures)- Transportation and Electronics' is estimated at $390.87 million, up from $347.00 million year-over-year [6] - 'Operating Income (non-GAAP measures)- Safety and Industrial' is projected to be $668.45 million, compared to $568.00 million in the same quarter last year [6] Stock Performance - 3M shares have returned +3.8% over the past month, outperforming the Zacks S&P 500 composite's +2.1% change, with a Zacks Rank 3 (Hold) indicating expected performance in line with the overall market [6]