Growing Demand Boosted United States Lime & Minerals (USLM) Q3

Diamond Hill Capital, an investment management company, released its “Small 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 small-cap stocks gaining over 12% as measured by the Russell 2000 Index. However, the portfolio trailed the Russell 2000 Index in the quarter, returning 7.93% (net of fees). The relative underperformance was mainly due to the rally being driven by sectors that the portfolio typically does not own. 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 Capital Small Cap Strategy highlighted stocks such as United States Lime & Minerals, Inc. (NASDAQ:USLM). United States Lime & Minerals, Inc. (NASDAQ:USLM) manufactures and supplies lime and limestone products. The one-month return of United States Lime & Minerals, Inc. (NASDAQ:USLM) was -6.14%, and its shares lost 23.02% of their value over the last 52 weeks. On November 24, 2025, United States Lime & Minerals, Inc. (NASDAQ:USLM) stock closed at $121.21 per share, with a market capitalization of $3.471 billion.

Diamond Hill Capital Small Cap Strategy stated the following regarding United States Lime & Minerals, Inc. (NASDAQ:USLM) in its third quarter 2025 investor letter:

"Other top contributors in Q3 included Red Rock Resorts, United States Lime & Minerals, Inc. (NASDAQ:USLM) and Ducommun. US Lime and Mineral, which manufactures and supplies lime and limestone products, benefited from growing demand from construction, environmental and steel customers, which in turn drove sales growth. The company’s key markets in Louisiana and Texas are experiencing more stabilization work than other regions, with strong bidding activity indicating robust underlying demand. US Lime and Mineral is also benefiting from infrastructure projects in the region which should contribute to above-average construction activity."

United States Lime & Minerals, Inc. (NASDAQ:USLM) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 19 hedge fund portfolios held United States Lime & Minerals, Inc. (NASDAQ:USLM) at the end of the second quarter, compared to 23 in the previous quarter. While we acknowledge the potential of United States Lime & Minerals, Inc. (NASDAQ:USLM) 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 United States Lime & Minerals, Inc. (NASDAQ:USLM) and shared the list of best under-the-radar stocks that investors may consider adding to their portfolios. 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.