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

Chuck Bath, CFA

Portfolio Manager

Austin Hawley, CFA

Portfolio Manager

Brian Fontanella, CFA

Portfolio Specialist

Returns

Quarterly

Period and Annualized Total Returns as of 3/31/2021
Since Inception
(6/30/2001)
15-YR10-YR5-YR3-YR1-YRYTD1Q21
Gross of Fees 10.46 10.17 13.41 15.28 15.32 65.94 10.85 10.85
Net of Fees 9.87 9.61 12.85 14.74 14.78 65.20 10.72 10.72
Russell 1000 Index 8.56 10.17 13.97 16.66 17.31 60.59 5.91 5.91
Russell 1000 Value Index 7.56 7.69 10.99 11.74 10.96 56.09 11.26 11.26
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 FeesRussell 1000 IndexRussell 1000 Value Index
2020 10.00 9.49 20.96 2.80
2019 32.96 32.35 31.43 26.54
2018 -8.81 -9.25 -4.78 -8.27
2017 21.09 20.50 21.69 13.66
2016 15.27 14.71 12.05 17.34
2015 -0.18 -0.71 0.92 -3.83
2014 11.59 10.98 13.24 13.45
2013 37.79 37.06 33.11 32.53
2012 13.35 12.79 16.42 17.51
2011 3.60 3.11 1.50 0.39
2010 10.61 10.00 16.10 15.51
2009 31.49 30.79 28.43 19.69
2008 -33.92 -34.29 -37.60 -36.85
2007 6.95 6.37 5.77 -0.17
2006 17.04 16.42 15.46 22.25

Peer Group Quartile Rankings1 as of March 31, 2021

  10-YR5-YR3-YR1-YR
Diamond Hill Percentile 10th12th14th29th

1 This is presented as supplemental information. Source: eVestment Analytics. Ranking within eVestment U.S. Large Cap Value Equity universe based on monthly returns gross of fees. Ranking data calculated on 4/16/21 (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

  Large Cap Composite Russell 1000 IndexRussell 1000 Value Index
Inception June 30, 2001
Status Closed to most new investors
Median Forward P/E 21.5x 22.5x20.7x
Median Trailing P/E 28.8x 30.2x28.3x
Weighted Average Dividend Yield 1.8% 1.4%2.1%
Median Price / Book 3.8x 3.9x3.2x
Median Price / Sales 3.5x 3.6x3.1x
Median Market Cap. $81.0B $13.6B$12.0B
Weighted Average Market Cap. $147.2B $406.6B$135.4B
Portfolio Turnover (5-Year) 27%
Active Share vs. Core / Value Benchmark 82%/76%
Upside/Downside Capture Ratio vs. Core Benchmark 104%/96%
Upside/Downside Capture Ratio vs. Value Benchmark 107%/93%

This is presented as supplemental information.

Portfolio

Portfolio Guidelines

  • Typically 40–60 positions
  • Maximum position size is 7%
  • Top 10 holdings are typically greater than 30% of net assets
  • Maximum industry exposure is 20%
  • Maximum sector exposure is 30%

Market Capitalization

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

Vehicles Available

Top Ten Equity Holdings as of March 31, 2021

  Sector % of Net Assets
American International Group, Inc. Financials 4.1
Abbott Laboratories Health Care 3.7
Berkshire Hathaway, Inc. (Cl B) Financials 3.2
Bank of America Corp. Financials 3.0
Walt Disney Co. Communication Services 3.0
KKR & Co., Inc. (Cl A) Financials 2.9
Procter & Gamble Co. Consumer Staples 2.7
PepsiCo, Inc. Consumer Staples 2.6
Medtronic PLC Health Care 2.6
Mondelez International, Inc. (Cl A) Consumer Staples 2.6
Total as % of Net Assets 30.4%
Total number of equity holdings 53

This is presented as supplemental information.

Sector Allocation3 as of March 31, 2021

Large Cap Composite Russell 1000 IndexRussell 1000 Value Index
Financials 26.3 11.4 20.6
Health Care 12.6 13.1 12.6
Cons. Discretionary 12.1 12.6 8.8
Consumer Staples 11.2 5.3 6.1
Communication Services 10.4 10.5 9.2
Industrials 7.8 9.4 13.9
Info. Technology 6.1 26.7 9.5
Real Estate 3.3 3.0 4.3
Materials 2.6 2.8 4.8
Energy 2.3 2.6 5.1
Utilities 1.2 2.6 5.0
Cash & Other 4.2 0.0 0.0

This is presented as supplemental information.

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 Russell 1000 Index is the core benchmark. The Russell 1000 Value Index is the value benchmark. Upside/Downside Capture: Source: eVestment Analytics based on monthly returns (gross of fees) from 7/1/01 – 3/31/21.

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

Index data source: London Stock Exchange Group PLC. See diamond-hill.com/disclosures for a full copy of the disclaimer.

Back to top