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 Performance - The Russell 1000 Value Index increased by 3.8% in Q4 2025, with the information technology sector rising by 11% and communication services by 9%, driven by AI optimism [1] - The Fund returned 1.41% in the quarter, underperforming the Russell 1000 Value Index [1] Group 2: The Cooper Companies, Inc. (NASDAQ:COO) - The Cooper Companies, Inc. was introduced as a new addition to the Diamond Hill Large Cap Fund, focusing on its operations in contact lenses and women's health [2][3] - The Cooper Companies' stock closed at $80.65 per share on December 30, 2025, with a market capitalization of $16.034 billion [2] - The company experienced a one-month return of -4.35% and a 52-week loss of 15.37% [2] Group 3: Investment Rationale - The Fund initiated a position in The Cooper Companies due to revenue growth deceleration and executional challenges impacting valuations, despite long-term growth potential in the contact lens industry [3] - The women's health and fertility segment faces cyclical headwinds but operates in a market with secular tailwinds, with expectations for long-term benefits from recent investments [3] Group 4: Hedge Fund Interest - The Cooper Companies is not among the 30 most popular stocks among hedge funds, with 56 hedge fund portfolios holding the stock at the end of Q3, up from 48 in the previous quarter [4] - While acknowledging the potential of The Cooper Companies, the Fund believes certain AI stocks present greater upside potential and less downside risk [4]