Diamond Hill Capital, an investment management company, released its “Small Cap Strategy” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. Markets continued their rally in the third quarter, with small-cap stocks gaining over 12% as measured by the Russell 2000 Index. However, the portfolio trailed the Russell 2000 Index in the quarter, returning 7.93% (net of fees). The relative underperformance was mainly due to the rally being driven by sectors that the portfolio typically does not own. For more information on the fund’s top picks in 2025, please check its top five holdings.
In its third-quarter 2025 investor letter, Diamond Hill Capital Small Cap Strategy highlighted stocks such as Centrus Energy Corp. (NYSEAMERICAN:LEU). Headquartered in Bethesda, Maryland, Centrus Energy Corp. (NYSEAMERICAN:LEU) is a nuclear fuel supplying company. The one-month return for Centrus Energy Corp. (NYSEAMERICAN:LEU) was -34.95%, and its shares gained 208.18% over the last 52 weeks. On November 26, 2025, Centrus Energy Corp. (NYSEAMERICAN:LEU) stock closed at $254.22 per share, with a market capitalization of $4.63 billion.
Diamond Hill Capital Small Cap Strategy stated the following regarding Centrus Energy Corp. (NYSEAMERICAN:LEU) in its third quarter 2025 investor letter:
“Our top individual contributors in Q3 were Mr. Cooper Group and Centrus Energy Corp. (NYSEAMERICAN:LEU). Nuclear fuel and services provider Centrus Energy is benefiting from renewed interest in nuclear power in the US to support growing power demand tied to the AI boom. Centrus is a nuclear fuel broker with burgeoning enrichment capabilities, positioning it well as the US seeks to maintain domestic energy independence.”
Centrus Energy Corp. (NYSEAMERICAN:LEU) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 27 hedge fund portfolios held Centrus Energy Corp. (NYSEAMERICAN:LEU) at the end of the second quarter, which was 23 in the previous quarter. While we acknowledge the potential of Centrus Energy Corp. (NYSEAMERICAN:LEU) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
In another article, we covered Centrus Energy Corp. (NYSEAMERICAN:LEU) and shared the list of stocks Jim Cramer discussed. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.