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Investment Strategy

  • To estimate intrinsic value, the business must be understandable, and we must be able to reasonably forecast its cash flows. We seek businesses with sustainable competitive advantages, conservative balance sheets, and management with an ownership mentality.
  • Investments are sold when the stock price reaches our estimate of intrinsic value, our estimate of intrinsic value is revised such that there is no longer a discount to intrinsic value, a holding reaches our stated maximum position size, or to raise proceeds for a more attractive opportunity.

Team

Grady Burkett, CFA

Portfolio Manager

Krishna Mohanraj, CFA

Portfolio Manager

Returns

Quarterly

Period and Annualized Total Returns as of 3/31/2021
Since Inception
(12/31/2016)
3-YR1-YRYTD1Q21
Gross of Fees 13.67 8.77 56.22 7.22 7.22
Net of Fees 13.37 8.37 55.24 7.05 7.05
Morningstar Global Markets ex-U.S. Index 10.53 6.68 51.53 3.58 3.58
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 ex-U.S. Index
2020 7.64 6.94 11.17
2019 24.95 24.55 21.57
2018 -9.62 -9.62 -14.17
2017 32.22 32.22 27.37

Peer Group Quartile Rankings1 as of March 31, 2021

  Since
Inception
3-YR1-YR
Diamond Hill Percentile 38th45th53rd

1 This is presented as supplemental information. Source: eVestment. Ranking within ACWI Ex-U.S. All Cap Core Equity universe based on monthly returns gross of fees. Ranking data calculated on 4/19/21 (as of 3/31/21) and is subject to change as additional firms within the category submit data.

Statistics

Portfolio Characteristics VS. Benchmark2 as of March 31, 2021

  International Composite Morningstar Global Markets ex-U.S. Index
Inception December 31, 2016
Status Open
Median Forward P/E 21.6x 18.5x
Median Trailing P/E 24.1x 21.9x
Weighted Average Dividend Yield 1.5% 2.2%
Median Price / Book 3.4x 1.9x
Median Price / Sales 3.8x 1.7x
Median Market Cap. $32.0B $2.7B
Weighted Average Market Cap. $173.8B $85.4B
Portfolio Turnover (1-Year) 42%
Active Share vs. Benchmark 92%
Upside/Downside Capture Ratio 114%/100%

This is presented as supplemental information.

Portfolio

Portfolio Guidelines

  • Typically 35–55 positions
  • Maximum sector exposure is 35%
  • Maximum single country exposure is 30%
  • Maximum emerging market exposure is 30%

Market Capitalization

The portfolio typically invests in companies with a market capitalization of $1 billion or greater.

Vehicles Available

Top Ten Equity Holdings as of March 31, 2021

  Sector % of Net Assets
Diageo PLC Consumer Staples 4.1
Walt Disney Co. Communication Services 3.9
Unilever PLC Consumer Staples 3.9
Anheuser-Busch InBev S.A./N.V. Consumer Staples 3.1
BT Group PLC Communication Services 2.9
Alphabet, Inc. (Cl A) Communication Services 2.8
Julius Baer Gruppe AG Financials 2.8
Howden Joinery Group PLC Industrials 2.7
Check Point Software Technologies Ltd. Info. Technology 2.7
Rogers Communications, Inc. (Cl B) Communication Services 2.6
Total as % of Net Assets 31.7%
Total number of equity holdings 51

This is presented as supplemental information.

Sector Allocation3 as of March 31, 2021

International Composite Morningstar Global Markets ex-U.S. Index
Communication Services 20.6 6.6
Financials 16.5 18.0
Cons. Discretionary 15.3 13.6
Consumer Staples 13.9 8.1
Health Care 10.2 8.7
Info. Technology 9.8 11.9
Industrials 9.8 13.4
Real Estate 1.1 3.7
Materials 1.0 8.6
Energy 0.0 4.1
Utilities 0.0 3.2
Cash & Other 1.8 0.0

This is presented as supplemental information.

Top Five Countries as of March 31, 2021

International Composite Morningstar Global Markets ex-U.S. Index
United Kingdom 25.4 9.2
Switzerland 11.0 5.5
United States 10.3 0.6
France 7.5 5.8
Canada 6.7 6.5

This is presented as supplemental information.

Regional Exposure as of March 31, 2021

International Composite Morningstar Global Markets ex-U.S. Index
Europe 56.0 39.5
Asia & Pacific 19.4 48.6
North America 17.0 7.0
Latin America 3.1 2.1
Middle East & Africa 2.7 2.8

This is presented as supplemental information.

DEVELOPED VS. EMERGING EXPOSURE as of March 31, 2021

International Composite Morningstar Global Markets ex-U.S. Index
Developed 81.9 74.4
Emerging 16.3 25.6

Documents

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 ex-U.S. Index is the benchmark. Upside/Downside Capture: Source: eVestment Analytics based on monthly returns (gross of fees) from 1/1/17 – 3/31/21.

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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