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Large Cap Strategy

We are long-term, intrinsic value investors who treat each share of stock as a true ownership interest. We look to buy what we believe are good businesses we can understand at a discount to our estimate of intrinsic value.

Team

Group Item Count: 3
set at runtime

Chuck Bath, CFA

Portfolio Manager

Group Item Count: 3
set at runtime

Austin Hawley, CFA

Portfolio Manager

Group Item Count: 3
set at runtime

Brian Fontanella, CFA

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 invest at a discount to intrinsic value

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 30 Jun 2022
Since Inception
(30 Jun 2001)		 20Y15Y10Y5Y3Y1YYTD2Q22
Gross of Fees 9.51 10.55 8.47 12.51 8.97 8.02 -9.60 -17.35 -14.64
Net of Fees 8.92 9.97 7.92 11.96 8.46 7.52 -10.02 -17.54 -14.74
Russell 1000 Index 7.74 9.21 8.51 12.82 11.00 10.17 -13.04 -20.94 -16.67
Russell 1000 Value Index 6.99 7.86 6.10 10.50 7.17 6.87 -6.82 -12.86 -12.21
Swipe or scroll right for more data

Past performance is not a guarantee of future results. To view a GIPS Report for all composites, click here.

Calendar Year Returns (%)

Year Gross of Fees Net of FeesRussell 1000 IndexRussell 1000 Value Index
2021 26.50 25.92 26.45 25.16
2020 10.00 9.49 20.96 2.80
2019 32.96 32.35 31.43 26.54
2018 -8.81 -9.25 -4.78 -8.27
2017 21.09 20.50 21.69 13.66
2016 15.27 14.71 12.05 17.34
2015 -0.18 -0.71 0.92 -3.83
2014 11.59 10.98 13.24 13.45
2013 37.79 37.06 33.11 32.53
2012 13.35 12.79 16.42 17.51
2011 3.60 3.11 1.50 0.39
2010 10.61 10.00 16.10 15.51
2009 31.49 30.79 28.43 19.69
2008 -33.92 -34.29 -37.60 -36.85
2007 6.95 6.37 5.77 -0.17

Peer Group Quartile Rankings1 As of 30 Jun 2022

Diamond
Hill
Percentile
17th
47th
66th
82nd

Statistics

Portfolio Characteristics vs Benchmark2 As of 30 Jun 2022

  Large Cap Composite Russell 1000 IndexRussell 1000 Value Index
Inception 30 Jun 2001 ——
Status Closed to most new investors ——
Median Forward P/E 15.2x 16.8x15.4x
Median Trailing P/E 18.0x 19.7x17.9x
Weighted Average Dividend Yield 1.8% 1.6%2.3%
Median Price/Book 3.5x 3.0x2.5x
Median Price/Sales 2.8x 2.6x2.3x
Median Market Cap. $71.0B $11.9B$11.2B
Weighted Average Market Cap. $204.4B $423.8B$134.8B
Portfolio Turnover (5-Year) 31% ——
Active Share vs Core/Value Benchmark 78%/80% ——
Upside/Downside Capture Ratio vs Core Benchmark 103%/95% ——
Upside/Downside Capture Ratio vs Value Benchmark 106%/95% ——

Stay informed with regular portfolio updates, fact sheets and returns notifications

Portfolio

Portfolio Guidelines

  • Typically 40–60 positions
  • Maximum position size is 7%
  • Top 10 holdings are typically greater than 30% of net assets
  • Maximum industry exposure is 20%
  • Maximum sector exposure is 30%

Market Capitalization

The portfolio typically invests in companies with a market capitalization of $5 billion or greater.

Top Ten Equity Holdings3 As of 30 Jun 2022

  Sector % of Net Assets
American International Group, Inc. Financials 4.2
Abbott Laboratories Health Care 3.6
ConocoPhillips Energy 3.5
PepsiCo, Inc. Consumer Staples 3.1
Truist Financial Corp. Financials 2.9
Bank of America Corp. Financials 2.8
Pfizer, Inc. Health Care 2.7
KKR & Co., Inc. (Cl A) Financials 2.6
Humana, Inc. Health Care 2.4
NVR, Inc. Cons. Discretionary 2.4
Total as % of Net Assets 30.1%
Total number of equity holdings 57

Sector Allocation4 (%) As of 30 Jun 2022

Russell 1000 Index
Russell 1000 Value Index

Documents

In August 2021, an error was discovered in the trailing period returns as of 30 June 2021 for the Large Cap Composite, which incorrectly stated the 20-year return. The correction changed the net return from 13.50% to 9.97% and the gross return from 14.32% to 10.56%.

1 Source: eVestment Analytics. Ranking within eVestment US Large Cap Value Equity universe based on monthly returns gross of fees. Ranking data calculated on 20 Jul 2022 (as of 30 Jun 2022) and is subject to change as additional firms within the category submit data.

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 Russell 1000 Index is the core benchmark. The Russell 1000 Value Index is the value benchmark. Upside/Downside Capture: Source: eVestment Analytics based on monthly returns (gross of fees) from 1 July 2001 – 30 Jun 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: London Stock Exchange Group PLC. See diamond-hill.com/disclosures for a full copy of the disclaimer.

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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