Our Team
"We all have a shared love for what we do."
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Investment Philosophy
"The essence of our philosophy is that the market is not efficient — we want to exploit these inefficiencies."
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Investment Process
"We're always looking for relative value and opportunities in the marketplace, and it's all based on bottom-up security selection."
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Unlocking Potential: Securitized Assets
"One of the things we like about the securitized market is the credit enhancements — the things that protect investors that are put in place that you don't get with credit."
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Building Lasting
Client Partnerships
"We're not looking for clients, we're looking for strategic partners."
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Securitized Total Return Composite
Past performance is not a guarantee of future results. Composite results reflect the reinvestment of dividends, capital gains and other earnings when appropriate. Net returns are calculated by reducing the gross returns by the highest stated fee in the composite fee schedule. Only transaction costs are deducted from gross of fees returns. To view a GIPS Report for all composites, click here.
Statistics
Portfolio Characteristics1
As of
31 Dec 2025
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Portfolio
Portfolio Guidelines
The portfolio generally invests at least 80% of its assets in a diversified portfolio of fixed income securities and may invest a significant portion or all of its assets in asset-backed, mortgage-related and mortgage-backed securities. The portfolio may invest up to 15% of its assets in below-investment grade securities at the time of purchase. The portfolio will typically maintain an average portfolio duration within 2 of the Bloomberg US Securitized: MBS, ABS and CMBS Index.
Sector Allocation2 (%) As of
31 Dec 2025
Bloomberg US Securitized MBS ABS CMBS Index
Duration Breakdown (%)As of
31 Dec 2025
|
Securitized Total Return Composite |
Bloomberg US Securitized MBS ABS CMBS Index |
| Less than one Y |
20.3 |
0.5 |
| 1-3 Y |
14.9 |
22.0 |
| 3-5 Y |
13.1 |
22.4 |
| 5-7 Y |
26.2 |
27.3 |
| 7-10 Y |
12.5 |
27.7 |
| 10-20 Y |
9.8 |
0.1 |
| 20+ Y |
3.2 |
0.0 |
Credit Quality Rating3 (%) As of
31 Dec 2025
| AAA |
5.3 |
| AA |
64.1 |
| A |
8.4 |
| BBB |
16.8 |
| BB |
2.7 |
| B |
0.2 |
| CCC & Below |
0.0 |
| Not Rated |
2.5 |
Key Rate Duration (%) As of
31 Dec 2025
|
Securitized Total Return Composite |
Bloomberg US Securitized MBS ABS CMBS Index |
| 1Y |
0.09 |
0.16 |
| 2Y |
0.19 |
0.20 |
| 3Y |
0.33 |
0.37 |
| 5Y |
1.02 |
1.00 |
| 10Y |
2.24 |
1.90 |
| 20Y |
1.41 |
1.30 |
| 30Y |
0.10 |
0.14 |
Disclosure
Index data source: Bloomberg Index Services Limited. See diamond-hill.com/disclosures for a full copy of the disclaimer.
Risk disclosure: In general, when interest rates rise, fixed income values fall. Lower quality/high yield securities involve greater default risk or price changes than bonds with higher credit ratings. Mortgage- and asset-backed securities are influenced by factors affecting the housing market and the assets underlying such securities. The securities may decline in value, face valuation difficulties and become more volatile and/or illiquid. They are also subject to prepayment risk, which occurs when mortgage holders refinance or repay loans sooner than expected, creating an early return of principal to loan holders.
1 Data, where applicable, is shown gross of fees and should be viewed in conjunction with the net of fee returns included in this document.
2 Cash & Other may include cash and money market funds. RMBS: Residential Mortgage-Backed Securities, CMBS: Commercial Mortgage-Backed Securities.
3 Security quality ratings are derived from underlying portfolio securities by using the middle rating of Standard & Poor’s, Moody’s, and Fitch. If only two of Standard & Poor’s, Moody’s, and Fitch rates a security the higher of the two is selected. If only one of Standard & Poor’s, Moody’s, and Fitch rates a security the available rating is used. For securities that are not rated by Standard & Poor’s, Moody’s, or Fitch a rating from a secondary Nationally Recognized Statistical Rating Organization (“NRSRO”) may be used. Ratings by any agency represent an opinion only, not a recommendation to buy or sell. Securities that are not rated by any agencies are reflected as Not Rated “NR.”
DIAMOND HILL® CAPITAL MANAGEMENT, INC. | DIAMOND-HILL.COM | 855.255.8955 | 325 JOHN H. MCCONNELL BLVD | SUITE 200 | COLUMBUS, OHIO 43215