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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

Chuck Bath, CFA

Portfolio Manager

Austin Hawley, CFA

Portfolio Manager

Returns

Quarterly

Period and Annualized Total Returns as of 09/30/2020
Since Inception
(12/31/2011)
5-YR 3-YR 1-YR YTD 3Q20
Gross of Fees 12.40 11.90 7.32 3.03 -4.77 8.89
Net of Fees 11.99 11.59 6.80 2.56 -5.10 8.77
Russell 1000 Index 14.28 14.23 13.66 19.41 16.06 5.09
Russell 1000 Value Index 10.13 8.44 5.25 1.72 -1.00 9.21
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
2019 31.76 31.18 31.43 26.54
2018 -7.16 -7.63 -4.78 -8.27
2017 19.27 18.56 21.69 13.66
2016 19.17 19.15 12.05 17.34
2015 -0.59 -0.46 0.92 -3.83
2014 10.70 10.62 13.24 13.45
2013 38.75 37.22 33.11 32.53
2012 10.00 9.74 16.42 17.51

Peer Group Quartile Rankings1 as of September 30, 2020

  Since
Inception
5-YR3-YR1-YR
Diamond Hill Percentile 10th8th15th19th

1This 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 10/14/20 (as of 9/30/20) and is subject to change as additional firms within the category submit data.

Statistics

Portfolio Characteristics VS. Benchmark2 as of September 30, 2020

  Large Cap Concentrated Composite Russell 1000 IndexRussell 1000 Value Index
Inception December 31, 2011
Status Open
Median Forward P/E 22.0x 22.8x20.8x
Median Trailing P/E 25.6x 25.7x23.5x
Weighted Average Dividend Yield 2.2% 1.7%2.7%
Median Price / Book 3.2x 3.2x2.5x
Median Price / Sales 2.7x 2.7x2.1x
Median Market Cap. $78.7B $10.7B$9.1B
Weighted Average Market Cap. $122.5B $401.7B$112.7B
Portfolio Turnover (5-Year) 36%
Active Share vs. Core / Value Benchmark 93% / 88%
Upside/Downside Capture Ratio vs. Core Benchmark 97% / 107%
Upside/Downside Capture Ratio vs. Value Benchmark 111% / 100%

This is presented as supplemental information.

Portfolio

Portfolio Guidelines

  • Typically 20 positions
  • Maximum position size is 10%
  • Top 10 holdings are typically greater than 50% of net assets
  • Maximum industry exposure is 25%
  • Maximum sector exposure is 35%

Market Capitalization

Holdings are derived from the largest holdings in the Diamond Hill Large Cap strategy. The Large Cap strategy typically invests in large-capitalization companies with a market capitalization of $15 billion or greater.

Top Ten Equity Holdings as of September 30, 2020

  Sector % of Net Assets
Abbott Laboratories Health Care 8.3
Berkshire Hathaway, Inc. (Cl B) Financials 7.1
American International Group, Inc. Financials 6.2
Mondelez International, Inc. (Cl A) Consumer Staples 5.8
PepsiCo, Inc. Consumer Staples 5.7
Walt Disney Co. Communication Services 5.3
Citigroup, Inc. Financials 5.0
Charles Schwab Corp. Financials 4.8
Procter & Gamble Co. Consumer Staples 4.8
KKR & Co., Inc. (Cl A) Financials 4.6
Total as % of Net Assets 57.6%
Total number of equity holdings 20

This is presented as supplemental information.

Sector Allocation3 as of September 30, 2020

Large Cap Concentrated Composite Russell 1000 IndexRussell 1000 Value Index
Financials 27.8 9.6 18.1
Cons. Discretionary 16.6 12.3 7.6
Consumer Staples 16.3 6.5 8.4
Health Care 12.6 14.2 14.3
Communication Services 9.2 10.3 9.6
Info. Technology 7.9 28.0 9.7
Industrials 4.2 8.6 13.1
Energy 2.6 1.9 4.0
Real Estate 0.0 3.1 4.6
Utilities 0.0 2.8 6.0
Materials 0.0 2.7 4.7
Cash & Other 2.9 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 1/1/12– 9/30/20.

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.