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Mid Cap Fund

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

Chris Welch, CFA

Portfolio Manager

Group Item Count: 3
set at runtime

Chris Bingaman, CFA

Assistant Portfolio Manager

Group Item Count: 3
set at runtime

Kristen Sheffield, CFA, CIPM

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

Mid Cap Fund

Total net assets

$209MM
As of 31 Aug 2022

Inception

31 Dec 2013

Tickers

DHPAX (Investor)
DHPIX (Class I)
DHPYX (Class Y)

Status

Open

Returns

As of 30 Sep 2022 Period and Annualized Total Returns (%) As of 31 Aug 2022 Expense Ratio (%)
NAV ($)YTD
Return
(%)
Since Inception
(31 Dec 2013)
5Y3Y1Y3MOAug Total
Investor (DHPAX) 14.56 -21.80 6.62 5.79 7.03 -8.44 -6.85 -2.49 1.07
Class I (DHPIX) 14.64 -21.67 6.94 6.11 7.33 -8.18 -6.76 -2.48 0.78
Class Y (DHPYX) 14.70 -21.56 7.06 6.23 7.47 -8.04 -6.74 -2.41 0.66
Russell Midcap Index 9.05 9.17 9.36 -14.82 -4.20 -3.14
Russell Midcap Value Index 8.12 7.49 9.55 -7.80 -6.29 -3.06
Swipe or scroll right for more data
As of 30 Sep 2022 Period and Annualized Total Returns (%) As of 30 Jun 2022 Expense Ratio (%)
NAV ($)YTD
Return
(%)
Since Inception
(31 Dec 2013)
5Y3Y1Y3MOTotal
Investor (DHPAX) 14.56 -21.80 6.19 4.63 3.95 -10.41 -15.64 1.07
Class I (DHPIX) 14.64 -21.67 6.50 4.93 4.24 -10.15 -15.57 0.78
Class Y (DHPYX) 14.70 -21.56 6.61 5.05 4.35 -10.07 -15.62 0.66
Russell Midcap Index 8.44 7.96 6.59 -17.30 -16.85
Russell Midcap Value Index 7.64 6.27 6.70 -10.00 -14.68
Swipe or scroll right for more data

Past performance is not indicative of future results. Investment returns and principal values will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The Fund’s current performance may be lower or higher than the performance quoted. For current to most recent month-end performance, visit diamond-hill.com. Performance assumes reinvestment of all distributions. Returns for periods less than one year are not annualized.

Calendar Year Returns (%)

Year Class I (DHPIX) Russell Midcap IndexRussell Midcap Value Index
2021 31.29 22.58 28.34
2020 -1.76 17.10 4.96
2019 25.82 30.54 27.06
2018 -10.31 -9.06 -12.29
2017 10.47 18.52 13.34
2016 18.56 13.80 20.00
2015 0.74 -2.44 -4.78
2014 7.91 13.22 14.75

Morningstar RatingsTM

Class I Shares
Mid-Cap Value Category

Overall rating

Analyst rating

Fee level

Below Average
The Overall Morningstar Rating is based on 391 Mid-Cap Value funds derived from a weighted average of the risk-adjusted performance figures associated with its 3- and 5-year Morningstar Ratings as of 30 Jun 2022.

Statistics

Portfolio Characteristics1 As of 30 Jun 2022

Management Fee 0.60%
Distribution Frequency Annual
Median Market Capitialization $7.5B
Portfolio Turnover (12 months trailing) 16%
Active Share 95%
Number of Equity Holdings in Portfolio 56

Five-Year Risk Statistics As of 30 Jun 2022 (Class I Shares)

vs Russell Midcap Index vs Russell Midcap Value Index
Standard Deviation 21.12% 21.12%
Beta 1.04% 1.04%
Sharpe Ratio 0.29 0.29
Alpha -2.77% -1.28%
R-Squared 90.94% 96.72%

Since Inception Upside/Downside Capture As of 30 Jun 2022 (Class I Shares)

vs Russell Midcap Index 93%/101%
vs Russell Midcap Value Index 97%/102%

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 25% 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 between $1.5 billion and $20 billion (or, if greater, the maximum market capitalization of companies generally within the capitalization range of the Russell Midcap Index) at the time of purchase.

Top Ten Equity Holdings2 As of 30 Jun 2022

  Sector % of Net Assets
WESCO International, Inc. Industrials 3.7
Red Rock Resorts, Inc. (Cl A) Cons. Discretionary 3.7
Check Point Software Technologies Ltd. Info. Technology 3.4
Post Holdings, Inc. Consumer Staples 3.4
CubeSmart Real Estate 3.3
SVB Financial Group Financials 3.2
Ashland Global Holdings, Inc. Materials 2.8
American International Group, Inc. Financials 2.7
Webster Financial Corp. Financials 2.7
NVR, Inc. Cons. Discretionary 2.7
Total as % of Net Assets 31.6%

Sector Allocation3 (%) As of 30 Jun 2022

Russell Midcap Index
Russell Midcap Value Index

Distributions

Income Short-Term Long-Term Record Date Pay Date Reinvestment NAV
Investor (DHPAX) 0.0551 29 Dec 2021 31 Dec 2021 18.58
Class I (DHPIX) 0.1100 29 Dec 2021 31 Dec 2021 18.65
Class Y (DHPYX) 0.1303 29 Dec 2021 31 Dec 2021 18.71
Investor (DHPAX) 0.0540 29 Dec 2020 31 Dec 2020 14.21
Investor (DHPAX) 0.0211 11 Dec 2020 15 Dec 2020 13.85
Class I (DHPIX) 0.0886 29 Dec 2020 31 Dec 2020 14.27
Class I (DHPIX) 0.0211 11 Dec 2020 15 Dec 2020 13.93
Class Y (DHPYX) 0.1033 29 Dec 2020 31 Dec 2020 14.31
Class Y (DHPYX) 0.0211 11 Dec 2020 15 Dec 2020 13.99
Investor (DHPAX) 0.0514 27 Dec 2019 31 Dec 2019 14.60
Investor (DHPAX) 0.2107 11 Dec 2019 13 Dec 2019 14.51
Class I (DHPIX) 0.0939 27 Dec 2019 31 Dec 2019 14.65
Class I (DHPIX) 0.2107 11 Dec 2019 13 Dec 2019 14.60
Class Y (DHPYX) 0.1028 27 Dec 2019 31 Dec 2019 14.69
Class Y (DHPYX) 0.2107 11 Dec 2019 13 Dec 2019 14.65
Investor (DHPAX) 0.0613 27 Dec 2018 31 Dec 2018 11.80
Investor (DHPAX) 0.2768 12 Dec 2018 14 Dec 2018 12.47
Class I (DHPIX) 0.1017 27 Dec 2018 31 Dec 2018 11.83
Class I (DHPIX) 0.2768 12 Dec 2018 14 Dec 2018 12.55
Class Y (DHPYX) 0.1183 27 Dec 2018 31 Dec 2018 11.86
Class Y (DHPYX) 0.2768 12 Dec 2018 14 Dec 2018 12.60
Investor (DHPAX) 0.0305 27 Dec 2017 29 Dec 2017 13.73
Investor (DHPAX) 0.0264 0.1460 13 Dec 2017 15 Dec 2017 13.45
Class I (DHPIX) 0.0663 27 Dec 2017 29 Dec 2017 13.77
Class I (DHPIX) 0.0264 0.1460 13 Dec 2017 15 Dec 2017 13.53
Class Y (DHPYX) 0.0752 27 Dec 2017 29 Dec 2017 13.81
Class Y (DHPYX) 0.0264 0.1460 13 Dec 2017 15 Dec 2017 13.57
Investor (DHPAX) 0.0178 28 Dec 2016 30 Dec 2016 12.62
Investor (DHPAX) 0.0617 14 Dec 2016 16 Dec 2016 12.63
Class I (DHPIX) 0.0519 28 Dec 2016 30 Dec 2016 12.65
Class I (DHPIX) 0.0617 14 Dec 2016 16 Dec 2016 12.69
Class Y (DHPYX) 0.0551 28 Dec 2016 30 Dec 2016 12.68
Class Y (DHPYX) 0.0617 14 Dec 2016 16 Dec 2016 12.72
Investor (DHPAX) 0.0372 29 Dec 2015 31 Dec 2015 10.79
Class I (DHPIX) 0.0600 29 Dec 2015 31 Dec 2015 10.81
Class Y (DHPYX) 0.0704 29 Dec 2015 31 Dec 2015 10.83
Investor (DHPAX) 0.0579 29 Dec 2014 31 Dec 2014 10.80
Class I (DHPIX) 0.0717 29 Dec 2014 31 Dec 2014 10.81
Class Y (DHPYX) 0.0725 29 Dec 2014 31 Dec 2014 10.83
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Documents

Carefully consider the Fund’s investment objectives, risks and expenses. This and other important information are contained in the Fund’s prospectus and summary prospectus, which are available at diamond-hill.com or calling 888.226.5595. Read carefully before investing. The Diamond Hill Funds are distributed by Foreside Financial Services, LLC (Member FINRA). Diamond Hill Capital Management, Inc., a registered investment adviser, serves as Investment Adviser to the Diamond Hill Funds and is paid a fee for its services. Not FDIC insured | No bank guarantee | May lose value

See diamond-hill.com/disclosures for index definitions, data sources and other definitions.

Risk disclosure: Small- and mid-capitalization issues tend to be more volatile and less liquid than large-capitalization issues.

Fund holdings, sector allocations and portfolio statistics subject to change without notice.

1 Active Share is relative to the Russell Midcap Index.

2 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.

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

As of 30 Jun 2022, there were 2 gold rated, 10 silver rated, 15 bronze rated, 6 neutral rated, 0 negative rated and 110 not rated funds in the Mid-Cap Value category based on the cheapest share class for each fund as defined by Morningstar. The cheapest share class does not necessarily equate to the highest rated share class. Class I shares are not the cheapest share class for the Diamond Hill Mid Cap Fund.

The Morningstar Analyst Rating is not a credit or risk rating. It is a subjective evaluation performed by Morningstar’s manager research group, which consists of various Morningstar, Inc. subsidiaries (“Manager Research Group”). In the United States, that subsidiary is Morningstar Research Services LLC, which is registered with and governed by the U.S. Securities and Exchange Commission. The Manager Research Group evaluates funds based on five key pillars, which are process, performance, people, parent and price. The Manager Research Group uses this five-pillar evaluation to determine how they believe funds are likely to perform relative to a benchmark over the long term on a risk adjusted basis. They consider quantitative and qualitative factors in their research. For actively managed strategies, people and process each receive a 45% weighting in their analysis, while parent receives a 10% weighting. For passive strategies, process receives an 80% weighting, while people and parent each receive a 10% weighting. For both active and passive strategies, performance has no explicit weight as it is incorporated into the analysis of people and process; price at the share-class level (where applicable) is directly subtracted from an expected gross alpha estimate derived from the analysis of the other pillars. The impact of the weighted pillar scores for people, process and parent on the final Analyst Rating is further modified by a measure of the dispersion of historical alphas among relevant peers. For certain peer groups where standard benchmarking is not applicable, primarily peer groups of funds using alternative investment strategies, the modification by alpha dispersion is not used.

The Analyst Rating scale is Gold, Silver, Bronze, Neutral and Negative. For active funds, a Morningstar Analyst Rating of Gold, Silver, or Bronze reflects the Manager Research Group’s expectation that an active fund will be able to deliver positive alpha net of fees relative to the standard benchmark index assigned to the Morningstar category. The level of the rating relates to the level of expected positive net alpha relative to Morningstar category peers for active funds. For passive funds, a Morningstar Analyst Rating of Gold, Silver, or Bronze reflects the Manager Research Group’s expectation that a fund will be able to deliver a higher alpha net of fees than the lesser of the relevant Morningstar category median or 0. The level of the rating relates to the level of expected net alpha relative to Morningstar category peers for passive funds. For certain peer groups where standard benchmarking is not applicable, primarily peer groups of funds using alternative investment strategies, a Morningstar Analyst Rating of Gold, Silver, or Bronze reflects the Manager Research Group’s expectation that a fund will deliver a weighted pillar score above a predetermined threshold within its peer group. Analyst Ratings ultimately reflect the Manager Research Group’s overall assessment, are overseen by an Analyst Rating Committee and are continuously monitored and reevaluated at least every 14 months. For more detailed information about Morningstar’s Analyst Rating, including its methodology, please go to https://shareholders.morningstar.com/investor-relations/governance/Compliance--Disclosure/default.aspx.

The Morningstar Analyst Rating (i) should not be used as the sole basis in evaluating a fund, (ii) involves unknown risks and uncertainties which may cause the Manager Research Group’s expectations not to occur or to differ significantly from what they expected and (iii) should not be considered an offer or solicitation to buy or sell the fund.

The Overall Morningstar Rating is based on 391 Mid-Cap Value funds as of 30 Jun 2022. The Fund’s Class I rating was 2 stars among 391 and 2 stars among 361 funds for the 3- and 5-year periods ended 30 Jun 2022, respectively.

The Morningstar Rating™ for funds, or "star rating", is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five- and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods.

The Morningstar Broad Fee Level data point compares the fund's prospectus adjusted operating net expense ratio to the prospectus adjusted operating net expense ratio of all the other funds within its Morningstar Category.

© Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.

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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