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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.


Group Item Count: 1
set at runtime

Krishna Mohanraj, CFA

Portfolio Manager

Philosophy and process highlights

We use a five-point-framework to assess each prospective investment.

Business quality. Does the company possess sustainable competitive advantages?

Industry structure. How is the industry structured and are changes on the horizon?

End-market conditions. How favorable are end-market conditions?

Management capability. How well does management allocate capital and execute its strategy?

Capital structure. Is the capital structure appropriate and how has it evolved over time?

Our approach to sustainability

Related insights


Period and Annualized Total Returns (%) As of 31 Dec 2022
Since Inception
(31 Dec 2016)
Gross of Fees 8.09 3.82 2.22 -12.76 -12.76 17.44
Net of Fees 7.28 3.04 1.45 -13.41 -13.41 17.22
MSCI ACWI ex USA Index 4.85 0.88 0.07 -16.00 -16.00 14.28
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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
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 2022



Portfolio Characteristics vs Benchmark2 As of 31 Dec 2022

  International Composite MSCI ACWI ex USA Index
Inception 31 Dec 2016
Status Open
Median Forward P/E 16.7x 15.2x
Median Trailing P/E 17.8x 16.7x
Median Price/Book 2.8x 2.0x
Median Price/Sales 2.3x 2.0x
Median Market Cap. $27.9B $7.8B
Weighted Average Market Cap. $78.5B $77.3B
Portfolio Turnover (5-Year) 30%
Active Share vs Benchmark 91%
Upside/Downside Capture Ratio 116%/100%

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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 2022

  Country % of Net Assets
Fairfax Financial Holdings Ltd. Canada 4.1
Novartis AG Switzerland 3.8
Check Point Software Technologies Ltd. Israel 3.6
Unilever PLC United Kingdom 3.6
Samsung Electronics Co. Ltd. Korea, Republic Of 3.3
HDFC Bank Ltd. India 3.0
Ashmore Group PLC United Kingdom 2.9
Fomento Economico Mexicano SAB de CV Mexico 2.8
Swatch Group Ltd. Switzerland 2.8
Nintendo Co. Ltd. Japan 2.8
Total as % of Net Assets 32.6%
Total number of equity holdings 51

Sector Allocation4 (%) As of 31 Dec 2022


Top Five Countries (%) As of 31 Dec 2022

International Composite MSCI ACWI ex USA Index
United Kingdom 22.1 9.8
Switzerland 12.7 6.5
Japan 7.3 14.0
United States 6.8 0.1
Canada 6.0 7.7

Regional Exposure (%) As of 31 Dec 2022

International Composite MSCI ACWI ex USA Index
Europe 54.6 41.9
Asia & Pacific 20.0 44.2
North America 12.8 7.9
Latin America 6.2 2.4
Middle East & Africa 3.6 3.6

Developed vs Emerging Exposure (%) As of 31 Dec 2022

International Composite MSCI ACWI ex USA Index
Developed Markets 79.1 75.0
Emerging Markets 18.2 25.0


1 Source: eVestment. Ranking within ACWI ex-US All Cap Core Equity universe based on monthly returns gross of fees. Ranking data calculated on 20 Jan 2023 (as of 31 Dec 2022) 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 2022.

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 for a full copy of the disclaimer.

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