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Diamond Hill Capital, an investment management company, released its “Mid 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 US stocks gaining over 8% as measured by the Russell 3000 Index. Small-cap stocks experienced the strongest quarterly performance, rising by more than 12%, whereas large-cap stocks increased by about 8%, and mid-cap stocks saw a gain of 5%. The strategy underperformed the Russell Midcap Index in the third quarter, returning 4.49% net vs. 5.33% for the Index. 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 Mid Cap Strategy highlighted stocks such as GoDaddy Inc. (NYSE:GDDY). GoDaddy Inc. (NYSE:GDDY) designs and develops cloud-based products. The one-month return of GoDaddy Inc. (NYSE:GDDY) was -1.74%, and its shares lost 36.12% of their value over the last 52 weeks. On December 30, 2025, GoDaddy Inc. (NYSE:GDDY) stock closed at $126.08 per share, with a market capitalization of $17.456 billion.
Diamond Hill Mid Cap Strategy stated the following regarding GoDaddy Inc. (NYSE:GDDY) in its third quarter 2025 investor letter:
“Other bottom Q3 contributors included GoDaddy Inc. (NYSE:GDDY), Freeport McMoRan and Fidelity National Information Services. GoDaddy designs and develops cloud-based products. Shares declined in the quarter as sales slowed and its customer base contracted. Further, investors are weighing whether and to what extent AI may impact GoDaddy’s business in the future.”
GoDaddy Inc. (NYSE:GDDY) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 49 hedge fund portfolios held GoDaddy Inc. (NYSE:GDDY) at the end of the third quarter, compared to 56 in the previous quarter. GoDaddy Inc.’s (NYSE:GDDY) total revenue increased by 10% in Q3 2025 to $1.2 billion, exceeding the guidance. While we acknowledge the potential of GoDaddy Inc. (NYSE:GDDY) 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 GoDaddy Inc. (NYSE:GDDY) and shared the list of best beaten down technology stocks to buy according to hedge funds. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.