Diamond Hill Capital, an investment management company, released its “Large Cap Fund” first-quarter 2025 investor letter. A copy of the letter can be downloaded here. Markets exhibited a mixed performance in Q1 as the new presidential administration generated significant buzz with a flurry of actions, leaving investors uncertain about the future direction. The portfolio trailed the Russell 1000 Value Index benchmark in Q1. The strategy returned 1.36% (net) vs 2.14% returns for the index. To get an idea of the fund’s best choices for 2025, check out its top 5 positions.

In its first-quarter 2025 investor letter, Diamond Hill Large Cap Fund highlighted stocks such as Target Corporation (NYSE:TGT). Target Corporation (NYSE:TGT) is a US-based general merchandise retailer. The one-month return of Target Corporation (NYSE:TGT) was 1.85%, and its shares gained 40.09% of their value over the last 52 weeks. On May 9, 2025, Target Corporation (NYSE:TGT) stock closed at $96.40 per share with a market capitalization of $43.8 billion.

Diamond Hill Large Cap Fund stated the following regarding Target Corporation (NYSE:TGT) in its Q1 2025 investor letter:

"Among our bottom Q1 individual contributors were Regal Rexnord and Target. US-based mass retailer Target Corporation (NYSE:TGT) had a better-than-expected holiday quarter. However, sales trends to start 2025 have softened, and the market is increasingly concerned about consumers’ health and Target’s competitive positioning — sentiment which weighed on shares during the quarter."Is Target Corporation (TGT) the Worst Blue Chip Stock to Buy?

A woman purchasing groceries at a Target store, with a cart full of products.

Target Corporation (NYSE:TGT) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 56 hedge fund portfolios held Target Corporation (NYSE:TGT) at the end of the fourth quarter which was 49 in the previous quarter. While we acknowledge the potential of Target Corporation (NYSE:TGT) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

In another article, we covered Target Corporation (NYSE:TGT) and shared the list of worst blue-chip stocks to Buy. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.

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