Diamond Hill Large Cap Concentrated Fund Q2 2025 Commentary: Market Rises Amid Trade Tensions

Diamond Hill Large Cap Concentrated Fund experienced a sharp downturn in April due to President Trump's "Liberation Day" tariffs announcement, but markets rebounded and rose approximately 11% for the quarter. US stocks showed a uniform increase in the latter part of the quarter.

The Diamond Hill Large Cap Concentrated Fund experienced a sharp downturn in April due to President Trump's "Liberation Day" tariffs announcement. However, markets rebounded and rose approximately 11% for the quarter, reflecting a uniform increase in US stocks in the latter part of the period [2].

The fund's performance was impacted by the uncertainty surrounding the tariffs, which initially caused market volatility. The "Liberation Day" tariffs, which were announced in April, led to a temporary decline in stock prices. However, the subsequent rebound indicates that investors remained optimistic about the overall economic outlook.

In addition to the fund's recovery, other institutional investors have also shown increased interest in The Walt Disney Company (NYSE:DIS). Banque Transatlantique SA significantly increased its holdings in Disney by 2,221.4% during the first quarter, acquiring 17,771 additional shares and bringing its total ownership to 18,571 shares valued at approximately $1.7 million [1]. This substantial increase in holdings suggests that institutional investors are confident in Disney's future prospects.

Analysts have also set new price targets for Disney, with a majority recommending a "buy" rating. Needham & Company LLC, Stephens, Evercore ISI, Chardan Capital, and UBS Group have all restated or raised their price targets for the stock. The consensus target price is now $131.18, with a "Moderate Buy" rating [1].

The rebound in the market and the increased interest from institutional investors indicate a positive outlook for US stocks. The uniform increase in US stocks in the latter part of the quarter suggests that investors are optimistic about the economic recovery and the potential for continued growth.

References:
[1] https://www.marketbeat.com/instant-alerts/filing-the-walt-disney-company-dis-shares-acquired-by-banque-transatlantique-sa-2025-09-03/
[2] https://www.benzinga.com/markets/macro-economic-events/25/09/47497763/us-japan-on-brink-of-a-deal-to-slash-trump-tariffs-on-automakers-report