Summary

• We do not believe Humana's current share price reflects the company's earnings power, and as industry conditions normalize, we believe it can return to target margins over the long term.
• We initiated a position in Antero Resources, a natural gas exploration and production company, to gain exposure given our constructive long-term outlook for US natural gas.
• We exited our position in First Advantage, a leader in the background check space, to pursue other opportunities with less macro exposure and AI-disruption concerns.
• We exited our position in financial services company Stifel as the stock reached our estimate of intrinsic value.

The following segment was excerpted from Diamond Hill Small-Mid Cap Strategy Q1 2026 Commentary.

New positions

• Humana (HUM), the second-largest Medicare Advantage insurer, has faced industry-wide pressure from rising health care costs and lower government reimbursement

51 Followers