Diamond Hill Capital Adds Humana to Large Cap Portfolio

Diamond Hill Capital, a First Eagle Investment Management company, added Humana Inc. to its Large Cap Strategy portfolio during the second quarter of 2026. The investment firm identified the insurance company as an attractive valuation play, noting its position as the second-largest Medicare Advantage insurer in the United States.

The decision follows strong first-quarter 2026 results and government Medicare rate increases announced in early April 2026. Diamond Hill Capital expects these rate increases to help the broader industry bridge the gap between pricing and cost trends.

While Humana previously faced squeezed margins due to rising medical costs and lower government reimbursement, the investment firm anticipates that margins will normalize. This recovery is expected as the company adjusts pricing to reflect higher utilization and government reimbursement rates improve.