Diamond Hill Capital, an investment management company, released its "Little Hat Fund" for the first quarter of 2025 investors. A copy of the letter can be downloaded here. In the first quarter, market imbalances were caused by the activities of the new presidential administration, which led to attention to the future. The Russell 3000 index fell 4.7% in the first quarter, which was the first quarter loss since 2023 in the third quarter. DiamondHill Small Cap fund returned -11.56% in the first quarter, lagging behind the Russell 2000 Index's -9.48% return. For more information on the top five of the funds in 2025, check out its top five.

Diamond Hill Small Cap Fund highlighted stocks such as NASDAQ:FA in its first-quarter 2025 investor letter. First Advantage Corporation (NASDAQ:FA) is a global provider of employment background screening, identity and verification solutions. First Advantage Company (NASDAQ:FA) has a one-month return of 11.66%, and its stock has lost 10.59% in the past 52 weeks. On May 5, 2024, the stock of First Advantage Company (NASDAQ:FA) closed at US$14.83 per share, with a market value of US$25.75 billion.

Diamond Hill Small Cap Fund pointed out the following about First Advantage Company (NASDAQ:FA) in its first-quarter 2025 investor letter:

“Other Q1 contributors include The first advantage company (NASDAQ:FA), Civitas Resources and Allegiant Travel. The first advantage of providing employment background screening, identity and verification solutions faces pressures related to an uncertain macroeconomic environment that may weigh the demand for background screening in 2025. Additionally, the company has been leveraging the balance sheet due to its recent integration of its acquisition of Sterling Check Corp. ”

A close-up of the fingers of the technician who scans the ID, verified the admission verification process.

First Advantage Company (NASDAQ:FA) is not among the 30 most popular stocks in hedge funds. According to our database, at the end of the fourth quarter, 16 hedge fund portfolios ended the First Advantage Company (NASDAQ:FA) in the fourth quarter, compared with 15 in the third quarter. First Advantage Corporation (NASDAQ:FA) revenue in the fourth quarter of 2024 was US$375 million, up 0.9% year-on-year. Although we acknowledge the potential of First Advantage Company (NASDAQ:FA) as an investment, our belief is that AI stocks have greater hope to deliver higher returns and do so in a shorter time frame. If you are looking for AI stocks that are as promising as NVIDIA but have less than 5 times its earnings, check out our report Cheapest AI stocks.