Improved Positive Sales Performance Lifted Sysco Corporation (SYY) in Q3

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 Sysco Corporation (NYSE:SYY). Sysco Corporation (NYSE:SYY) markets and distributes various food and related products to the food service or food-away-from-home industry. The one-month return of Sysco Corporation (NYSE:SYY) was -7.06%, and its shares lost 5.79% of their value over the last 52 weeks. On November 6, 2025, Sysco Corporation (NYSE:SYY) stock closed at $72.91 per share, with a market capitalization of $34.91 billion.

Diamond Hill Large Cap Fund stated the following regarding Sysco Corporation (NYSE:SYY) in its third quarter 2025 investor letter:

"Other top Q3 contributors included L3Harris Technologies, Caterpillar and Sysco Corporation (NYSE:SYY). Sysco Corporation, a food products manufacturer, saw incrementally positive sales performance through the summer months as the company seems to be benefiting from internal initiatives — which, if similar progress continues in the quarters ahead, would be a welcome development."

Sysco Corporation (NYSE:SYY) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 45 hedge fund portfolios held Sysco Corporation (NYSE:SYY) at the end of the second quarter, compared to 50 in the previous quarter. For the first quarter of 2026, Sysco Corporation's (NYSE:SYY) sales grew by 3.2% on an as-reported basis, driven by U.S. Foodservice, International, and SYGMA. While we acknowledge the potential of Sysco Corporation (NYSE:SYY) 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 Sysco Corporation (NYSE:SYY) and shared the list of best bear market stocks to buy. 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.