General Motors (GM) Rose Due to Improved Clarity in Tariffs

Diamond Hill Capital, an investment management company, released its “Large Cap Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. Markets continued their YTD rally in the third quarter of 2025, with the Russell 3000 Index gaining 8%, bringing the calendar-year returns to over 14%. The portfolio declined and underperformed the Russell 1000 Value Index in the quarter.  In addition, you can check the top 5 holdings of the fund to know its best picks in 2025.

In its third-quarter 2025 investor letter, Diamond Hill Large Cap Fund highlighted stocks such as General Motors Company (NYSE:GM). General Motors Company (NYSE:GM) is an automobile manufacturer. The one-month return of General Motors Company (NYSE:GM) was 24.37%, and its shares gained 23.86% of their value over the last 52 weeks. On November 6, 2025, General Motors Company (NYSE:GM) stock closed at $68.84 per share, with a market capitalization of $63.048 billion.

Diamond Hill Large Cap Fund stated the following regarding General Motors Company (NYSE:GM) in its third quarter 2025 investor letter:

"Among our top individual contributors in Q3 were General Motors Company (NYSE:GM) and Martin Marietta Materials. Automobile manufacturer General Motors benefited from growing clarity around tariffs, which is in turn improving visibility into the likely impact on the company’s business. Further, investors seemed cheered by the prospect of rate cuts, which could help bolster consumer borrowing and drive increased sales in the quarters ahead."

General Motors Company (NYSE:GM) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 71 hedge fund portfolios held General Motors Company (NYSE:GM) at the end of the second quarter, compared to 79 in the previous quarter.  While we acknowledge the potential of General Motors Company (NYSE:GM) 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 General Motors Company (NYSE:GM) and shared the list of Jim Cramer discussed. 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.