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International Strategy

We seek to identify higher quality businesses with strong balance sheets that are selling at a distinct discount to intrinsic value and are led by management teams who are smart capital allocators.

Team

Group Item Count: 2
set at runtime

Krishna Mohanraj, CFA

Portfolio Manager

Group Item Count: 2
set at runtime

Matt McLaughlin, CFA, CAIA

Portfolio Specialist

Philosophy and process highlights

Under our intrinsic value philosophy, we:

Treat every investment as a partial ownership interest in that company

Seek to always invest with a margin of safety

Possess a long-term investment temperament

Recognize that market price and intrinsic value tend to converge over a reasonable period of time

Our approach to sustainability

Related insights

Returns

Period and Annualized Total Returns (%) As of 31 Jan 2024
Since Inception
(31 Dec 2016)
5Y3Y1YYTD3MOJan
Gross of Fees 9.36 7.78 4.20 8.42 -0.83 11.46 -0.83
Net of Fees 8.54 6.97 3.41 7.61 -0.89 11.25 -0.89
MSCI ACWI ex USA Index 6.10 5.32 1.14 5.88 -0.99 13.34 -0.99
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Period and Annualized Total Returns (%) As of 31 Dec 2023
Since Inception
(31 Dec 2016)
5Y3Y1YYTD4Q23
Gross of Fees 9.61 9.72 5.75 19.18 19.18 9.84
Net of Fees 8.78 8.90 4.95 18.29 18.29 9.64
MSCI ACWI ex USA Index 6.33 7.08 1.55 15.62 15.62 9.75
Swipe or scroll right for more data

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. Prior to 30 September 2022, actual fees were used in calculating net returns. All net returns were changed retroactively to reflect the highest fee in the composite fee schedule. To view a GIPS Report for all composites, click here.

Calendar Year Returns (%)

Year Gross of Fees Net of FeesMSCI ACWI ex USA Index
2023 19.18 18.29 15.62
2022 -12.76 -13.41 -16.00
2021 13.73 12.87 7.82
2020 7.64 6.83 10.65
2019 24.95 24.01 21.51
2018 -9.62 -10.30 -14.20
2017 32.22 31.23 27.19

Peer Group Quartile Rankings1 As of 31 Dec 2023

Diamond
Hill
Percentile
9th
24th
13th
25th

Statistics

Portfolio Characteristics vs Benchmark2 As of 31 Dec 2023

  International Composite MSCI ACWI ex USA Index
Inception 31 Dec 2016
Status Open
Median Forward P/E 16.7x 16.4x
Median Trailing P/E 17.4x 18.6x
Median Price/Book 2.4x 1.9x
Median Price/Sales 2.7x 2.0x
Median Market Cap. $24.8B $8.5B
Weighted Average Market Cap. $83.4B $89.2B
Portfolio Turnover (5-Year) 26%
Active Share vs Benchmark 92%
Upside/Downside Capture Ratio 116%/100%

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Portfolio

Portfolio Guidelines

  • Typically 35–55 positions
  • Maximum sector exposure is 35%
  • Maximum single country exposure is 30%
  • Maximum emerging market exposure is 40%

Market Capitalization

The portfolio typically invests in companies with a market capitalization of $1 billion or greater.

Top Ten Equity Holdings3 As of 31 Dec 2023

  Country % of Net Assets
Samsung Electronics Co. Ltd. South Korea 3.6
EXOR N.V. Netherlands 3.4
Fairfax Financial Holdings Ltd. Canada 3.4
HDFC Bank Ltd. India 3.3
Spotify Technology S.A. United States 3.1
Tesco PLC United Kingdom 2.9
Compass Group PLC United Kingdom 2.9
Howden Joinery Group PLC United Kingdom 2.7
Unilever PLC United Kingdom 2.4
Canadian Natural Resources Ltd. Canada 2.4
Total as % of Net Assets 30.3%
Total number of equity holdings 52

Sector Allocation4 (%) As of 31 Dec 2023

MSCI ACWI ex USA Index

Top Five Countries (%) As of 31 Dec 2023

International Composite MSCI ACWI ex USA Index
United Kingdom 24.4 9.5
Switzerland 10.0 6.4
Canada 8.1 7.7
Japan 6.7 14.4
United States 5.8 0.1

Regional Exposure (%) As of 31 Dec 2023

International Composite MSCI ACWI ex USA Index
Europe 52.2 42.8
Asia & Pacific 20.4 43.5
North America 13.8 7.8
Latin America 6.7 2.6
Middle East & Africa 0.9 3.3

Developed vs Emerging Exposure (%) As of 31 Dec 2023

International Composite MSCI ACWI ex USA Index
Developed Markets 75.5 75.7
Emerging Markets 18.6 24.3

Documents

1 Source: eVestment. Ranking within ACWI ex-US All Cap Core Equity universe based on monthly returns gross of fees. Ranking data calculated on 19 January 2024 (as of 31 Dec 2023) and is subject to change as additional firms within the category submit data. Diamond Hill pays an annual fee to eVestment to access their platform and to use their data, including peer group rankings, in marketing materials. Diamond Hill does not pay for the ranking.

2 Source: FactSet. Active Share: Source: FactSet. Active share measures the difference between portfolio holdings and the benchmark. The higher the active share, the greater the difference. The MSCI ACWI ex USA Index is the benchmark. Upside/Downside Capture: Source: eVestment Analytics based on monthly returns (gross of fees) from 1 Jan 2017 – 31 Dec 2023.

3 Securities referenced may not be representative of all portfolio holdings. The reader should not assume that an investment in the securities was or will be profitable.

4 Cash & Other may include cash, treasuries, money market funds and short duration fixed income funds.

Index data source: MSCI, Inc. See diamond-hill.com/disclosures for index definitions, data sources and other definitions.

DIAMOND HILL® CAPITAL MANAGEMENT, INC. | DIAMOND-HILL.COM | 855.255.8955 | 325 JOHN H. MCCONNELL BLVD | SUITE 200 | COLUMBUS, OHIO 43215
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