Diamond Hill Large Cap Fund Purchased Cooper Companies (COO) Betting on the Resilient Contact Lens Industry

Diamond Hill Capital, an investment management company, released its “Large Cap Fund” fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. Equity markets continued their upward momentum in Q4, with the Russell 1000 Value Index increasing 3.8%. The information technology (+11%) and communication services (+9%) sectors are leading the rally, driven by AI optimism. The growth areas of the market accounted for the majority of the Index’s return in Q4. The firm maintains a cautious stance toward AI-driven market enthusiasm and believes that, fundamentally stable, high-quality, cash-generative businesses present attractive opportunities. Against this backdrop, the Fund returned 1.41% in the quarter, lagging the Russell 1000 Value Index’s 3.8% return. In addition, you can check the Fund's top five holdings to see its best picks for 2025.

In its fourth-quarter 2025 investor letter, Diamond Hill Large Cap Fund featured Cooper Companies, Inc. (NASDAQ:COO) as a new addition. The Cooper Companies, Inc. (NASDAQ:COO) is a medical device company that operates through CooperVision and CooperSurgical segments. The one-month return of The Cooper Companies, Inc. (NASDAQ:COO) was -4.35%, and its shares lost 15.37% of their value over the last 52 weeks. On December 30, 2025, The Cooper Companies, Inc. (NASDAQ:COO) stock closed at $80.65 per share, with a market capitalization of $16.034 billion.

Diamond Hill Large Cap Fund stated the following regarding The Cooper Companies, Inc. (NASDAQ:COO) in its fourth quarter 2025 investor letter:

"Medical device manufacturer The Cooper Companies, Inc. (NASDAQ:COO) is a global leader in contact lenses and women’s health and fertility care. We initiated a position as revenue growth deceleration in both segments and transitory executional challenges weighed on valuations. We believe growth in the contact lens industry will remain healthy long term, and the company is positioned to gain modest market share. The company’s women’s health and fertility segment is facing cyclical headwinds today yet operates in an end market with secular tailwinds, and we believe recent investments in the segment will pay off long term."

The Cooper Companies, Inc. (NASDAQ:COO) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 56 hedge fund portfolios held The Cooper Companies, Inc. (NASDAQ:COO) at the end of the third quarter, up from 48 in the previous quarter. While we acknowledge the potential of The Cooper Companies, Inc. (NASDAQ:COO) 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 The Cooper Companies, Inc. (NASDAQ:COO) and shared Diamond Hill Mid Cap Strategy's views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q4 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.