- Antiquated rules and strict limitations result in a benchmark that fails to capture the entire investable universe but provides opportunities for diligent managers.
- Changes in the market since the Financial Crisis have led to a dramatic evolution of the benchmark.
- Focusing upon the best risk/reward opportunities in the market positions Diamond Hill to take advantage of market dislocations driven by benchmark construction.
The guest for this podcast is Aaron Monroe, sector lead for our consumer group, assistant portfolio manager for our small cap strategy and coverage for our gaming, lodging and leisure research. In our discussion today, we’ll talk about Aaron’s career path to Diamond Hill, the importance of the CFA designation in our business, his visits to parking lots and other places, and searching for value as an investor.
Bill Zox and John McClain are co-portfolio managers on our Corporate Credit and High Yield strategies. Bill Zox started his career as a lawyer, graduated from Williams College, received a degree in taxation from the University of Florida, and received his law degree from The Ohio State University. Bill has been an employee since 2001 and is the Chief Investment Officer for Fixed Income. John McClain started in the industry in 2007 focusing on distressed debt and corporate workouts, and has been with Diamond Hill since 2014. He graduated from the University of Kentucky and received his MBA from Carnegie Mellon.
- Property assessed clean energy (PACE) programs are a way for property owners to finance energy-efficient renovations.
- Residential and commercial PACE programs have grown substantially over the past several years, though the securitization of these loans is still in the early stages.
- Looking beyond the standard lineup of asset-backed securities allows Diamond Hill to add value for our clients.
- The asset-backed securities market has expanded since 2008, with new types of securitization including marketplace lending.
- The marketplace lending industry offers a yield advantage for investors who can exploit inefficiencies in this new and growing market.
- Looking beyond the standard lineup of asset-backed securities allows us to add value for our clients.