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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

Krishna Mohanraj, CFA

Portfolio Manager

Returns

Quarterly

Period and Annualized Total Returns as of 9/30/2021
Since Inception
(12/31/2016)
3-YR1-YRYTD3Q21
Gross of Fees 12.35 8.84 32.93 8.15 -6.26
Net of Fees 12.01 8.31 32.09 7.62 -6.42
Morningstar Global Markets ex-U.S. Index 10.05 8.43 25.11 6.67 -2.38
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 September 30, 2021

  Since
Inception
3-YR1-YR
Diamond Hill Percentile 50th68th22nd

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 10/18/21 (as of 9/30/21) and is subject to change as additional firms within the category submit data.

Statistics

Portfolio Characteristics VS. Benchmark2 as of September 30, 2021

  International Composite Morningstar Global Markets ex-U.S. Index
Inception December 31, 2016
Status Open
Median Forward P/E 17.7x 17.1x
Median Trailing P/E 19.9x 18.8x
Weighted Average Dividend Yield 1.7% 2.2%
Median Price / Book 3.5x 2.0x
Median Price / Sales 3.5x 2.0x
Median Market Cap. $30.6B $2.5B
Weighted Average Market Cap. $135.9B $76.6B
Portfolio Turnover (1-Year) 38%
Active Share vs. Benchmark 93%
Upside/Downside Capture Ratio 112%/102%

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 September 30, 2021

  Sector % of Net Assets
Diageo PLC Consumer Staples 4.4
Check Point Software Technologies Ltd. Info. Technology 4.0
Unilever PLC Consumer Staples 3.8
Rogers Communications, Inc. (Cl B) Communication Services 3.1
Novartis AG Health Care 3.0
Samsung Electronics Co. Ltd. Info. Technology 3.0
BT Group PLC Communication Services 2.9
Alibaba Group Holding Ltd. Cons. Discretionary 2.8
Taiwan Semiconductor Manufacturing Co. Ltd. Info. Technology 2.8
Tencent Holdings Ltd. Communication Services 2.6
Total as % of Net Assets 32.4%
Total number of equity holdings 51

This is presented as supplemental information.

Sector Allocation3 as of September 30, 2021

International Composite Morningstar Global Markets ex-U.S. Index
Communication Services 21.0 5.9
Cons. Discretionary 15.0 12.6
Financials 13.7 18.2
Health Care 12.6 9.2
Consumer Staples 12.2 8.1
Info. Technology 11.8 12.3
Industrials 5.5 13.8
Materials 3.4 8.5
Energy 0.0 4.5
Real Estate 0.0 3.7
Utilities 0.0 3.1
Cash & Other 4.8 0.0

This is presented as supplemental information.

Top Five Countries as of September 30, 2021

International Composite Morningstar Global Markets ex-U.S. Index
United Kingdom 25.3 9.1
Switzerland 10.4 5.7
United States 8.7 0.7
Canada 8.2 6.7
China 7.9 8.9

This is presented as supplemental information.

Regional Exposure as of September 30, 2021

International Composite Morningstar Global Markets ex-U.S. Index
Europe 47.7 40.3
Asia & Pacific 22.5 47.2
North America 16.9 7.4
Latin America 4.0 2.1
Middle East & Africa 4.0 2.9

This is presented as supplemental information.

DEVELOPED VS. EMERGING EXPOSURE as of September 30, 2021

International Composite Morningstar Global Markets ex-U.S. Index
Developed 77.3 75.1
Emerging 17.9 24.9

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 – 9/30/21.

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.

DIAMOND HILL® CAPITAL MANAGEMENT, INC. | DIAMOND-HILL.COM | 855.255.8955 | 325 JOHN H. MCCONNELL BLVD | SUITE 200 | COLUMBUS, OHIO 43215
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