What makes FTI Consulting (FCN) a Lucrative Investment?

Wed, Aug 13, 2025, 6:18 AM 3 min read

Diamond Hill Capital, an investment management company, released its “Small-Mid Cap Fund” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. In Q2, the market surged uniformly for the rest of the quarter following a sharp decline in April due to President Trump’s “Liberation Day” tariffs announcement. The portfolio returned 5.60% (gross) and 5.37% (net) compared to an 8.59% return for the Russell 2500 Index. For more information on the fund’s top picks in 2025, please check its top five holdings.

In its second-quarter 2025 investor letter, Diamond Hill highlighted Small-Mid Cap Fund stocks such as FTI Consulting, Inc. (NYSE:FCN). Headquartered in Washington, the District of Columbia, FTI Consulting, Inc. (NYSE:FCN) is a business advisory services provider. On August 12, 2025, FTI Consulting, Inc. (NYSE:FCN) stock closed at $165.44 per share. One-month return of FTI Consulting, Inc. (NYSE:FCN) was 0.37%, and its shares lost 25.02% of their value over the last 52 weeks. FTI Consulting, Inc. (NYSE:FCN) has a market capitalization of $5.353 billion.

Diamond Hill highlighted Small-Mid Cap Fund stated the following regarding FTI Consulting, Inc. (NYSE:FCN) in its second quarter 2025 investor letter:

"FTI Consulting, Inc. (NYSE:FCN) provides business advisory services to manage change, mitigate risk and resolve disputes. It has a robust, balanced services lineup spanning procyclical (e.g., M&A advisory work), countercyclical (e.g., restructuring advisory) and acyclical (e.g., forensic accounting and litigation consulting) engagements. The company has improved its scale, geographic reach and service breadth over the past decade or so as the CEO and management team have successfully seeded and grown service areas and geographies while generally reorienting the company’s culture toward organic growth. Near-term disruptions over the past several quarters — which we believe will prove to be largely noise in the long term — gave us an opportunity to initiate a position in what we consider a healthy, solid business run by a capable management team at a compelling price."

An international conference room with a team of corporate finance and restructuring consultants.

FTI Consulting, Inc. (NYSE:FCN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 35 hedge fund portfolios held FTI Consulting, Inc. (NYSE:FCN) at the end of the first quarter, which was 25 in the previous quarter. FTI Consulting, Inc. (NYSE:FCN) reported revenue of $943.7 million compared to $949.2 million in Q2 2024. While we acknowledge the potential of FTI Consulting, Inc. (NYSE:FCN) 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.