Fueling Tomorrow: A Strategic Bet on Natural Gas's Future
Diamond Hill Capital's Investment Strategy and Q4 2025 Performance
Diamond Hill Capital, a prominent investment management firm, recently disseminated its "Large Cap Fund" investor letter for the fourth quarter of 2025. This letter underscored the continued upward trajectory of equity markets during this period, with the Russell 1000 Value Index experiencing a 3.8% increase. This rally was predominantly spearheaded by the information technology and communication services sectors, which saw gains of 11% and 9% respectively, largely propelled by optimism surrounding artificial intelligence. The growth-oriented segments of the market were the primary contributors to the Index's returns in the fourth quarter. Despite this, Diamond Hill maintains a measured approach towards the enthusiastic market response to AI. The firm believes that businesses characterized by fundamental stability, high quality, and strong cash generation capabilities offer compelling investment prospects. Within this market landscape, the Fund recorded a return of 1.41% for the quarter, which fell short of the Russell 1000 Value Index's 3.8% return.
EQT Corporation: A Key Addition to the Portfolio
In its investor letter for the fourth quarter of 2025, Diamond Hill Large Cap Fund announced the significant addition of EQT Corporation (NYSE: EQT) to its investment holdings. EQT Corporation is recognized as a leading producer of natural gas, with its headquarters located in Pittsburgh, Pennsylvania. As of February 2, 2026, EQT Corporation's stock closed at a price of $54.75 per share. The company has demonstrated a 2.51% return over the preceding month, and its shares have appreciated by 4.99% over the past twelve months. EQT Corporation currently boasts a market capitalization of $34.168 billion.
Strategic Advantages and Future Prospects of EQT
Diamond Hill Large Cap Fund articulated its strong confidence in EQT Corporation (NYSE: EQT), emphasizing its position as the most cost-efficient dry gas producer within the Appalachia region. The company possesses an extensive inventory of reserves, capable of sustaining operations for multiple decades, thereby solidifying its role as a crucial supplier of natural gas in the United States. EQT benefits from several inherent structural advantages, including its considerable operational scale, strategically consolidated acreage, and an increasing command over its gathering and transportation infrastructure, following a recent acquisition. These factors are expected to ensure the company's resilience and profitability across a diverse range of natural gas price scenarios. Diamond Hill remains optimistic about the long-term demand for natural gas in the U.S. market and views EQT as one of the most streamlined and low-cost operators in the natural gas sector.
Comparative Investment Landscape: EQT vs. AI Stocks
Despite the strategic investment by Diamond Hill, EQT Corporation (NYSE: EQT) does not appear on the curated list of the 30 most popular stocks among hedge funds. According to available data, 82 hedge fund portfolios held EQT Corporation at the close of the third quarter, a decrease from 96 portfolios in the previous quarter. While acknowledging EQT Corporation's investment potential, some analysts suggest that certain artificial intelligence (AI) stocks offer a more substantial upside and entail lower downside risks. For investors seeking an exceptionally undervalued AI stock poised for significant gains from Trump-era tariffs and the domestic manufacturing trend, specific reports detail promising short-term AI investment opportunities.