Diamond Hill Capital initiated a new position in Carrier Global Corporation during the first quarter of 2026, describing the HVAC manufacturer as a high-quality business available at a meaningful discount to its estimated worth.
Diamond Hill's Large Cap Strategy, which is part of First Eagle Investment Management, disclosed the position in its Q1 2026 investor letter, according to Yahoo Finance. The strategy declined 2.39% net of fees during the quarter, trailing the Russell 1000 Value Index's 2.10% decline. Stock selection in industrials and consumer discretionary helped performance, while picks in information technology, financials, and health care were the largest drag.
Carrier Global trades on the New York Stock Exchange under the ticker CARR. On May 22, 2026, shares closed at $63.14. The stock was up 1.99% over the prior month but had lost 11.05% over the past 52 weeks. The company carries a market capitalization of $52.44 billion.
In the letter, Diamond Hill described the reasoning for the new position directly. "Following its March 2020 spin-off from United Technologies, residential and commercial HVAC provider Carrier Global Corporation (NYSE:CARR) is now a focused, high-quality business that we believe is in an excellent position to continue to gain market share and improve margins long term. However, a cyclical downturn in residential markets has weighed on near-term results, creating an opportunity to initiate a position at a significant discount to our estimate of intrinsic value."
Carrier operates through two main business segments: Heating, Ventilating, and Air Conditioning, and Refrigeration. In the first quarter of 2026, the company reported sales of $5.3 billion. Adjusted operating profit was $594 million, and adjusted earnings per share came in at $0.57.
Hedge fund interest in the stock has been growing. According to the Yahoo Finance report, 59 hedge fund portfolios held Carrier Global at the end of the fourth quarter of 2025, up from 48 in the prior quarter.
Diamond Hill's broader Q1 letter noted that technology companies faced pressure during the quarter amid concerns about AI's potential effects on their businesses, but the firm maintained that their competitive advantages remain stronger than current valuations suggest. The firm also noted that the war in Iran created market uncertainty, though it supported performance in oil-sensitive exploration and production holdings within the portfolio.
