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Global Composite

Investment Strategy

We seek to identify higher quality businesses with strong balance sheets that are selling at a distinct discount to intrinsic value and are led by management teams who are smart capital allocators. We use a five-point-framework to assess each prospective investment.

  • Business Quality
    Does the company possess sustainable competitive advantages?
  • Industry Structure
    How is the industry structured and are there changes on the horizon?
  • End-Market Conditions
    How favorable are end-market conditions?
  • Management Capability
    How well does management allocate capital and execute its strategy?
  • Capital Structure
    Is the capital structure appropriate and how has it evolved over time?

More on Philosophy and Process

Team

Grady Burkett, CFA

Portfolio Manager

Documents

Composite Fact Sheet

Composite Commentary

Returns

Quarterly

 Period and Annualized Total Returns as of 6/30/2021
Since Inception
(12/31/2013)		 5-YR3-YR1-YRYTD2Q21
Gross of Fees 8.73 14.11 8.92 43.18 11.74 6.81
Net of Fees 8.40 13.58 8.20 42.28 11.38 6.64
Morningstar Global Markets Index 9.87 14.43 14.18 40.04 12.26 7.05
Swipe or scroll right for more data

Past performance is not a guarantee of future results. To view a compliant presentation for all composites, click here.

Calendar Year Returns

Year Gross of Fees Net of FeesMorningstar Global Markets Index
2020 2.60 1.93 16.07
2019 31.57 30.73 26.24
2018 -13.90 -14.51 -9.82
2017 30.84 30.84 23.87
2016 11.42 11.42 8.22
2015 -4.58 -4.58 -2.04
2014 3.69 3.69 4.00

Peer Group Quartile Rankings1 as of June 30, 2021

  Since
Inception		5-YR3-YR1-YR
Diamond Hill Percentile 36th25th76th36th

1 This is presented as supplemental information. Source: eVestment Analytics. Ranking within eVestment Global Large Cap Value universe based on monthly returns gross of fees. Ranking data calculated on 7/16/21 (as of 6/30/21) and is subject to change as additional firms within the category submit data.

Statistics

Portfolio Characteristics VS. Benchmark2 as of June 30, 2021

  Global Composite Morningstar Global Markets Index
Inception December 31, 2013 —
Status Open —
Median Forward P/E 24.2x 18.5x
Median Trailing P/E 28.1x 22.3x
Weighted Average Dividend Yield 1.9% 1.7%
Median Price / Book 4.4x 2.4x
Median Price / Sales 4.5x 2.4x
Median Market Cap. $151.1B $3.4B
Weighted Average Market Cap. $245.8B $291.3B
Portfolio Turnover (1-Year) 100% —
Active Share vs. Benchmark 90% —
Upside/Downside Capture Ratio 110%/117% —

This is presented as supplemental information.

Portfolio

Portfolio Guidelines

  • Typically 40–60 positions
  • Maximum sector exposure is 35%
  • Minimum U.S. exposure is 30%
  • Minimum foreign exposure is 30%
  • Maximum emerging market exposure is 20%

Market Capitalization

The portfolio typically invests in companies with a market capitalization of $5 billion or greater.

Vehicles Available

Top Ten Equity Holdings as of June 30, 2021

  Sector % of Net Assets
Check Point Software Technologies Ltd. Info. Technology 5.8
Rogers Communications, Inc. (Cl B) Communication Services 5.6
Unilever PLC Consumer Staples 5.4
Roche Holding AG Health Care 5.1
Berkshire Hathaway, Inc. (Cl B) Financials 4.9
Verizon Communications, Inc. Communication Services 4.7
Ashmore Group PLC Financials 4.7
Chevron Corp. Energy 3.7
Alibaba Group Holding Ltd. Cons. Discretionary 3.3
Charles Schwab Corp. Financials 2.8
Total as % of Net Assets 46.1%
Total number of equity holdings 39

This is presented as supplemental information.

Sector Allocation3 as of June 30, 2021

Global Composite Morningstar Global Markets Index
Communication Services 25.9 8.7
Consumer Staples 21.6 6.6
Info. Technology 13.4 20.5
Financials 13.3 14.1
Health Care 10.6 11.5
Cons. Discretionary 7.3 12.9
Energy 3.7 3.3
Industrials 1.7 11.1
Materials 0.0 5.4
Real Estate 0.0 3.4
Utilities 0.0 2.6
Cash & Other 2.5 0.0

This is presented as supplemental information.

Top Five Countries as of June 30, 2021

Global Composite Morningstar Global Markets Index
United States 47.0 56.7
United Kingdom 12.6 4.0
Switzerland 9.0 2.6
Israel 5.8 0.2
Canada 5.6 2.9

This is presented as supplemental information.

Regional Exposure as of June 30, 2021

Global Composite Morningstar Global Markets Index
North America 52.6 59.6
Europe 27.4 17.4
Asia & Pacific 9.1 20.6
Middle East & Africa 5.8 1.2
Latin America 2.5 1.1

This is presented as supplemental information.

DEVELOPED VS. EMERGING EXPOSURE as of June 30, 2021

Global Composite Morningstar Global Markets Index
Developed 90.3 88.7
Emerging 7.1 11.3

Documents

2 Active Share: Source: FactSet. Active share measures the difference between portfolio holdings and the benchmark. The higher the active share, the greater the difference. The Morningstar Global Markets Index is the benchmark. Upside/Downside Capture: Source: eVestment Analytics based on monthly returns (gross of fees) from 1/1/14 – 6/30/21.

3 Cash & Other may include cash, treasuries, money market funds, and short duration fixed income funds.

Index data source: Morningstar, Inc. See diamond-hill.com/disclosures for a full copy of the disclaimer.

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