Diamond Hill High Yield Strategy Celebrates Five-Year Anniversary with Top Percentile Ranking in eVestment Peer Universe
COLUMBUS, OHIO, Jan. 29, 2020 – Diamond Hill Capital Management, Inc., an independent active asset manager and subsidiary of Diamond Hill Investment Group, Inc. (NASDAQ: DHIL), recently celebrated the five-year anniversary of its High Yield strategy with a top percentile ranking in eVestment’s U.S. High Yield Fixed Income universe.1 eVestment is a Nasdaq company and a global leader in institutional investment data and analytics.
The Diamond Hill High Yield strategy, launched in December 2014, seeks to generate high current income with the opportunity for capital appreciation. William (Bill) Zox, CFA, and John McClain, CFA, who have managed the strategy since inception, focus on evaluating the underlying business fundamentals and credit risk of high yield securities. They generally invest at least 80% of assets in a diversified portfolio of corporate debt securities that are rated below investment grade or are unrated. In addition to Zox and McClain, the portfolio team includes assistant portfolio manager Suken Patel, CFA, and Douglas Gimple, senior portfolio specialist.
The strategy ranks in the top 1% in its eVestment peer universe for the five- and three-year periods, and 14th percentile for the one-year period, through Dec. 31, 2019.
For the five-year period through Dec. 31, 2019, the Diamond Hill High Yield strategy returned 8.92% annualized before fees and 8.49% net of fees, compared with 6.13% annualized for its passive benchmark, the ICE BofA U.S. High Yield Index. The strategy returned 9.55% annualized for the three-year period ended Dec. 31, 2019 before fees and 9.02% net of fees, compared with 6.32% for the index. For the one-year period ended Dec. 31, 2019, the strategy returned 16.18% before fees and 15.63% net of fees, against 14.41% for the ICE BofA U.S. High Yield Index.
“We are pleased with the results we have delivered to our clients and optimistic about the future as high yield is an inefficient asset class getting less efficient over time,” said McClain.
“This is another example of Diamond Hill’s edge in navigating the financial markets on behalf of our clients and we are committed to maintaining that edge for the long term,” said Zox, who also serves as Diamond Hill’s chief investment officer for fixed income.
Download the Diamond Hill High Yield strategy fact sheet.
Past performance is not a guarantee of future results.
1Source: eVestment Analytics. Ranking within eVestment. U.S. High Yield Fixed Income universe based on monthly returns gross of fees. Ranking data calculated on 1/20/20 (as of 12/31/19) and is subject to change as additional firms within the category submit data.
Source ICE Data Indices, LLC (“ICE Data”), is used with permission. ICE Data, its affiliates and their respective third party suppliers disclaim any and all warranties and representations, express and/or implied, including any warranties of merchantability or fitness for a particular purpose or use, including the indices, index data and any data included in, related to, or derived therefrom. Neither ICE Data, its affiliates or their respective third party providers shall not be subject to any damages or liability with respect to the adequacy, accuracy, timeliness or completeness of the indices or the index data or any component thereof, and the indices and index data and all components thereof are provided on an “as is” basis and your use is at your own risk. ICE Data, its affiliates and their respective third party suppliers do not sponsor, endorse, or recommend Diamond Hill Capital Management, Inc., or any of its products or services.