First Eagle maintains its Above Average Parent rating as it absorbs its largest purchase to date.
In April 2026, First Eagle closed its acquisition of Diamond Hill Capital Management. The purchase, which brought USD 213 billion in assets under management (as of March 2026), fits with CEO Mehdi Mahmud’s strategy to balance reinvestments in the core business with selective expansions. First Eagle’s global value equity team, which managed most of the firm's USD 186 billion in assets under management as of March 2026, has long been a cornerstone of the firm. Still, the business is more diversified than it has been historically. Diamond Hill’s addition expands First Eagle’s capabilities in public fixed-income and US equities and largely complements its existing range of investment solutions. Mahmud remains CEO of First Eagle, while former Diamond Hill CEO Heather Brilliant continues to lead the Diamond Hill investment team and takes on chief operating officer duties for First Eagle. Diamond Hill had been publicly traded, but First Eagle is owned primarily by private equity firm Genstar Capital, which acquired its stake in August 2025.
First Eagle says that Diamond Hill will retain its brand and investment autonomy, but there are watchpoints. In June 2026, Diamond Hill portfolio manager Austin Hawley left the firm and was removed from three Diamond Hill US large-cap funds; others in noninvestment roles have also left. Potential fund rationalization is an area to monitor, as there is some overlap in the combined lineup.
Note: This share class' Parent Pillar rating is analyst-driven, as its Branding Name, Diamond Hill (Branding Name ID: BN000008KP), is covered by Morningstar Manager Research.
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