Diamond Hill Select Strategy Added Colgate-Palmolive (CL) on a Dip

Diamond Hill Capital, an investment management company, released its “Select Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. Markets continued their YTD rally in the third quarter, with the Russell 3000 Index surging 8%. At the same time, the portfolio underperformed the Russell 3000 Index, returning 4.98%. To get an idea of the fund’s best choices for 2025, check out its top 5 positions.

In its third-quarter 2025 investor letter, Diamond Hill Select Fund highlighted stocks such as Colgate-Palmolive Company (NYSE:CL). Colgate-Palmolive Company (NYSE:CL) engages in the manufacturing and sale of consumer products. The one-month return of Colgate-Palmolive Company (NYSE:CL) was -2.91%, and its shares lost 18.86% of their value over the last 52 weeks. On October 29, 2025, Colgate-Palmolive Company (NYSE:CL) stock closed at $75.73 per share, with a market capitalization of $61.207 billion.

Diamond Hill Select Fund stated the following regarding Colgate-Palmolive Company (NYSE:CL) in its third quarter 2025 investor letter:

"Though markets have continued rising throughout the year, we have continued finding individual companies whose prices we believe are not reflective of their long-term growth outlooks. Accordingly, we initiated four new positions in Q3, including Colgate-Palmolive Company (NYSE:CL), Berkshire Hathaway, Zoetis and Adobe.

Colgate-Palmolive is the market leader in several categories across attractive end markets, such as household goods, personal care and pet nutrition. The company’s leading positions combined with the everyday-use nature of its products should benefit Colgate moving forward. Recent concerns around consumer weakness and inventory destocking weighed on the share price and allowed us the opportunity to initiate a position."

Colgate-Palmolive Company (NYSE:CL) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 59 hedge fund portfolios held Colgate-Palmolive Company (NYSE:CL) at the end of the second quarter, compared to 65 in the previous quarter. While we acknowledge the potential of Colgate-Palmolive Company (NYSE:CL) 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 Colgate-Palmolive Company (NYSE:CL) and shared the list of billionaire Ken Fisher’s consumer stock picks with the highest upside potential. In addition, please check out our hedge fund investor letters Q3 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.