Diamond Hill Bets on BioLife Solutions’ (BLFS) High Switching Cost

Diamond Hill Capital, a First Eagle Investment Management company, issued its Q2 2026 investor letter for its "Small Cap Strategy". The letter can be downloaded here . The strategy returned 24.01% in the second quarter, outperforming the Russell 2000 Index's 21.49% return. Performance was positively affected by stock selection in health care and industrials, while the Fund's underweight position in information technology was the largest relative detractor as AI-related companies drove market gains. Small-cap equities benefited from strong earnings, resilient economic conditions, and easing geopolitical concerns, with technology leading sector performance while energy declined alongside lower oil prices. Despite the market's focus on AI, the Fund's strongest contributors came from businesses outside the theme, particularly in health care, defense-oriented companies, and tangible-asset industries. Looking ahead, the Fund remains focused on resilient, underfollowed companies tied to infrastructure, defense modernization, and essential industries where disciplined capital allocation and long-term demand can support value creation. Also, check the fund's top five holdings to see its best picks in 2026.

In its second-quarter 2026 investor letter, Diamond Hill Capital Small Cap Strategy highlighted BioLife Solutions, Inc. (NASDAQ: BLFS ). The Strategy initiated a position in BioLife Solutions, Inc. (NASDAQ:BLFS), a biotechnology company that develops and manufactures bioproduction products and services for the cell and gene therapy (CGT) industry, during the quarter. On September 03, 2026, BioLife Solutions, Inc. (NASDAQ:BLFS) closed at $35.53 per share. Over the past month, BioLife Solutions, Inc. (NASDAQ:BLFS) was up 2.51%, and its shares gained 34.28% over the past 52 weeks. BioLife Solutions, Inc. (NASDAQ:BLFS) has a market capitalization of $1.76 billion with a 52-week trading range between $17.86 and $38.10.

Diamond Hill Capital Small Cap Strategy stated the following regarding BioLife Solutions, Inc. (NASDAQ:BLFS) in its Q2 2026 investor letter:

"Cell and gene therapy products and services supplier BioLife Solutions, Inc. (NASDAQ:BLFS) provides essential materials used to manufacture, store and transport living human cells. The company's biopreservation media are supported by FDA Master Files and embedded across approved therapies and clinical trials. We initiated a position as we believe the company enjoys a distinct advantage over other players in the space, as switching providers can be difficult due to validation requirements, regulatory filings and manufacturing processes."