Diamond Hill Soft Closes Small-Mid Cap Strategy

COLUMBUS, Ohio – May 4, 2016 – Diamond Hill Capital Management, Inc., a subsidiary of Diamond Hill Investment Group, Inc. (NASDAQ:DHIL), announced that the Diamond Hill Small-Mid Cap strategy closed to most new investors effective April 30, 2016. The Diamond Hill Small-Mid Cap Fund will remain open to additional investment from existing shareholders and certain other new accounts as described in the prospectus supplement dated March 31, 2016. The Small-Mid Cap strategy will also be closed to new separate account clients. At Diamond Hill, portfolio managers have the authority to close their strategies before they reach an asset size where they believe they can no longer add sufficient value over a passive alternative, helping to protect existing clients.

Our primary focus is always on achieving value-added results for existing clients. We believe the best way to achieve that goal is to manage relatively concentrated portfolios, which becomes more difficult as the size of the portfolio increases. The Diamond Hill Small-Mid Cap strategy had $2.7 billion in assets under management as of April 30, 2016. Portfolio Manager Chris Welch decided to close the strategy to new investors in alignment with our investment philosophy and process.

As an alternative, new investors may be interested in the Diamond Hill Mid Cap strategy, which is also managed by Chris Welch and has available capacity. Historically, the overlap in holdings between our Mid Cap and Small-Mid Cap strategies has been approximately 80%.

An investor should consider the Fund’s investment objectives, risks, charges and expenses carefully before investing. The prospectus or summary prospectus contain this and other important information about the Fund(s) and are available at diamond-hill.com or by calling 888.226.5595. Please read the prospectus or summary prospectus carefully before investing. The Diamond Hill Funds are distributed by BHIL Distributors, LLC (Member FINRA/SIPC). Diamond Hill Capital Management, Inc., a registered investment adviser, serves as investment adviser to the Diamond Hill Funds and is paid a fee for its services. Diamond Hill Funds are not FDIC insured, may lose value, and have no bank guarantee.

Risk Disclosure: There are specialized risks associated with small and mid capitalization issues, such as market illiquidity and greater market volatility, than large capitalization issues.

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