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Benefits of Investing in Mortgage-Backed Securities
Investment Letters | August 17, 2020
Mortgage-backed securities (MBS) can play an important role as a fixed income asset class that offers several benefits. In addition to historically attractive yields compared to Treasuries and low volatility, these highly liquid assets provide diversification, which can lower portfolio...
Value Investing, Evolved
Investment Letters | July 13, 2020
Value investing is alive and well—despite an evolving economy. We believe understanding the source of value creation is critical for success.
Small Cap Stocks: Selective Opportunity
Investment Letters | May 29, 2020
As intrinsic value investors, we focus on evaluating businesses with a long-term time horizon. We build portfolios from the bottom up, irrespective of benchmark weights. That said, our fundamental research has periodically led us to identify opportunities in a specific...
Issuance in the high yield market has exploded over the last decade and assets are concentrated with the largest managers. Learn why we believe in disciplined capacity management and why this important practice is often overlooked in the industry.
The Art & Science of Capacity Management
Investment Letters | February 4, 2020
Capacity discipline is a key tenet of our client-first mentality. Learn how we approach capacity management and why this important practice is often overlooked in the industry.
Debunking the High Yield Index and High Yield ETFs
Investment Letters | February 1, 2017
The debate between active and passive management that has reverberated for years in equity markets is now shifting to fixed income. We believe it is critical for investors to understand the intricacies of passive management in high yield fixed income....
Variable Equity Management Fees and Alignment of Interests
Investment Letters | January 18, 2017
The Diamond Hill Mission Statement calls on us to serve our clients by providing investment strategies that deliver lasting value through a shared commitment to our intrinsic value-based investment philosophy, long-term perspective, disciplined approach, and alignment with our clients’ interests....
At Diamond Hill, our mission is to serve our clients by providing lasting value through a shared commitment to our intrinsic value-based investment philosophy, disciplined approach and alignment with our clients’ interests. To this end, we have carefully designed structural...
We described our approach to setting investment management fees and how we link those fees to our internal return goals in our 2011 white paper, “Active Management Fees and Alignment of Interests”, available on our website (www.diamond-hill.com). Specifically, we noted...
Valuing U.S. Equities: A Historical Perspective
Investment Letters | September 26, 2014
Executive Summary Using history as a guide, we considered the appropriate price-to-earnings (P/E) ratio that will provide investors a sufficient return on investment, relative to current interest rates, and reward them for equity market risks. We examined periods of extreme...
The Rationale For An Absolute Return Goal
Investment Letters | January 23, 2013
At Diamond Hill, all of our portfolio managers have a five-year absolute return objective for their strategies. Those absolute return goals are one of three quantitative inputs in our portfolio manager incentive compensation calculations, along with five-year return relative to...
The Importance of Being Long-Term Revisited
Investment Letters | July 25, 2012
In June 2009, we published The Importance of Being Long-Term, which attempted to provide some context and quantitative rigor in support of our five-year investment horizon. That paper used over one hundred years of stock market history to support our...
Active Management Fees & Alignment of Interests
Investment Letters | August 31, 2011
The Diamond Hill Mission Statement calls on us “To serve our clients through a disciplined, intrinsic value-based approach to investing, while maintaining a long-term perspective and aligning our interests with those of our clients.” Our mission permeates the way we...
On April 28, 2010 Bill Zox, CFA, Portfolio Manager of the Diamond Hill Strategic Income Strategy published a piece titled “Positioning for Rising Inflation and Interest Rates.” This subject is still topical one year later. In the following conversation, Bill...
Historical performance for Class C shares and Class I shares prior to their inception is based on the performance of Class A shares. Class C and Class I performance has been adjusted to reflect differences in sales charges and expenses...
Managing for the Long-Term
Investment Letters | June 16, 2010
Managing for the long-term is a central tenet of everything we do at Diamond Hill. Externally, we frequently emphasize our long-term focus as it relates to our investment philosophy; however it applies equally to the way we manage our organization...
Positioning For Rising Inflation and Interest Rates
Investment Letters | April 28, 2010
Investor concern about rising inflation and interest rates has continued to grow as the recovery in the markets and real economy has progressed. Although the timing and magnitude are difficult to predict, we believe that rising inflation and interest rates...
Managing Risk and What We Learned From The Crisis
Investment Letters | December 31, 2009
With the possible exception of technology stocks around the turn of the century, the volatility we have seen in the broad stock market, and particularly in financial stocks, is unprecedented since at least the 1930s. The S&P 500 Index lost...
Market Returns – 1970s and Today
Investment Letters | June 30, 2009
As I have stated many times, I was very fortunate to get started in this business in 1982. The bull market, which began in August of that year and lasted until 2000, helped make it a wonderful period to be...
The Importance of Being Long-Term
Investment Letters | June 15, 2009
At Diamond Hill we consistently tell our clients that we aspire to achieve superior returns over periods of five years or longer. Our dedication to a long-term investment orientation is clearly articulated in our mission statement: Committed to the Graham-Buffett...
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