Skip to main content

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 12/31/2020
Since Inception
(12/31/2016)
3-YR 1-YR YTD 4Q20
Gross of Fees 12.59 6.72 7.64 7.64 22.92
Net of Fees 12.32 6.38 6.94 6.94 22.74
Morningstar Global Markets ex-U.S. Index 10.25 5.07 11.17 11.17 17.28
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 December 31, 2020

  Since
Inception
3-YR1-YR
Diamond Hill Percentile 53rd48th81st

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 1/19/21 (as of 12/31/20) and is subject to change as additional firms within the category submit data.

Statistics

Portfolio Characteristics VS. Benchmark2 as of December 31, 2020

  International Composite Morningstar Global Markets ex-U.S. Index
Inception December 31, 2016
Status Open
Median Forward P/E 25.5x 20.8x
Median Trailing P/E 24.9x 21.8x
Weighted Average Dividend Yield 1.5% 2.4%
Median Price / Book 3.7x 2.0x
Median Price / Sales 3.9x 1.9x
Median Market Cap. $31.2B $2.6B
Weighted Average Market Cap. $141.8B $81.4B
Portfolio Turnover (1-Year) 49%
Active Share vs. Benchmark 92%
Upside/Downside Capture Ratio 110%/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 December 31, 2020

  Sector % of Net Assets
Anheuser-Busch InBev S.A./N.V. Consumer Staples 3.9
Walt Disney Co. Communication Services 3.8
Diageo PLC Consumer Staples 3.6
Samsung Electronics Co. Ltd. Info. Technology 3.5
Unilever PLC Consumer Staples 3.4
Howden Joinery Group PLC Industrials 3.2
Julius Baer Gruppe AG Financials 3.1
Check Point Software Technologies Ltd. Info. Technology 3.1
HDFC Bank Ltd. Financials 3.1
BT Group PLC Communication Services 2.8
Total as % of Net Assets 33.5%
Total number of equity holdings 48

This is presented as supplemental information.

Sector Allocation3 as of December 31, 2020

International Composite Morningstar Global Markets ex-U.S. Index
Communication Services 19.7 6.5
Consumer Staples 16.2 8.6
Financials 15.8 17.2
Cons. Discretionary 14.3 13.6
Info. Technology 10.7 12.1
Health Care 9.8 9.3
Industrials 8.4 13.2
Materials 1.3 8.5
Real Estate 1.2 3.8
Energy 0.0 3.9
Utilities 0.0 3.3
Cash & Other 2.6 0.0

This is presented as supplemental information.

Top Five Countries as of December 31, 2020

International Composite Morningstar Global Markets ex-U.S. Index
United Kingdom 26.0 9.1
Switzerland 10.9 5.8
United States 9.9 0.6
France 7.6 5.8
China 5.8 11.2

This is presented as supplemental information.

Regional Exposure as of December 31, 2020

International Composite Morningstar Global Markets ex-U.S. Index
Europe 54.5 39.2
Asia & Pacific 21.5 49.1
North America 14.5 6.7
Latin America 3.9 2.3
Middle East & Africa 3.1 2.7

This is presented as supplemental information.

DEVELOPED VS. EMERGING EXPOSURE as of December 31, 2020

International Composite Morningstar Global Markets ex-U.S. Index
Developed 80.1 74.1
Emerging 17.2 25.9

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 – 12/31/20.

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.