Investment management firm Diamond Hill Capital released its "large CAP fund" for the first quarter of 2025 investors. A copy of the letter can be downloaded here. The market performed differently in the first quarter as the new presidential administration caused a huge buzz through a series of actions that left investors uncertain about the direction of the future. The portfolio delayed the Russell 1000 value index benchmark in Q1. The strategy returns an exponential return of 1.36% (net) vs 2.14%. To learn about the best options for this fund in 2025, check out its top 5 positions.

In a first-quarter 2025 investor letter, Diamond Hill Big Cap Fund highlighted stocks such as Target Corporation (NYSE: TGT). Target Corporation (NYSE: TGT) is a US-based retailer of ordinary goods. Target Corporation (NYSE:TGT) has a one-month return of 1.85%, and its stock has accounted for 40.09% of its value in the past 52 weeks. On May 9, 2025, Target Corporation (NYSE: TGT) stock closed at $96.40 per share and had a market value of $43.8 billion.

Diamond Hill Large CAP Fund pointed out the following about the Target Company (NYSE:TGT) in its first-quarter 2025 investor letter:

“Among our bottom 1 Q1 individual contributors, there are rich Rexnord and Target. US-based mass retailers Target company (NYSE: TGT) had a holiday quarter that exceeded expectations. However, sales trends starting in 2025 have eased, with the market increasingly focusing on consumer health and Target’s competitive positioning – having an impact on stocks during the quarter. ”

A woman is buying groceries at a target store full of products.

Target Corporation (NYSE:TGT) is not among the 30 most popular stocks in hedge funds. According to our database, at the end of the fourth quarter, 56 hedge fund portfolios held Target Corporation (NYSE:TGT), which was 49 in the previous quarter. While we acknowledge the potential of the Target Company (NYSE:TGT) as an investment, our belief is that AI stocks have greater hope to provide 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.

In another post, we covered the target companies (NYSE:TGT) and shared a list of the worst blue chip stocks to buy. Also, check out our Hedge Fund Investor Letters Q1 2025 page for more investors in hedge funds and other leading investors.

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Disclosure: None. This article was originally published in Insider Monkey.