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Small-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: 2
set at runtime

Chris Welch, CFA

Portfolio Manager

Group Item Count: 2
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 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

Small-Mid Cap Fund

Total net assets

$1.5B
As of 30 Nov 2023

Inception

30 Dec 2005

Tickers

DHMAX (Investor)
DHMIX (Class I)
DHMYX (Class Y)

Status

Open

Returns

As of 7 Dec 2023 Period and Annualized Total Returns (%) As of 30 Nov 2023 Expense Ratio (%)
NAV ($)YTD
Return
(%)		 Since Inception
(30 Dec 2005)		 15Y10Y5Y3Y1Y3MONovTotal
Investor (DHMAX) 23.86 3.56 7.46 11.36 6.06 5.40 6.34 -4.80 -3.45 9.78 1.21
Class I (DHMIX) 24.22 3.90 7.80 11.70 6.37 5.72 6.65 -4.47 -3.36 9.82 0.92
Class Y (DHMYX) 24.31 4.02 7.75 11.72 6.50 5.84 6.76 -4.37 -3.35 9.79 0.80
Russell 2500 Index — — 8.07 12.29 7.53 6.91 3.26 -0.25 -3.34 9.00 —
Russell 2500 Value Index — — 7.13 11.01 6.61 6.09 7.63 -1.27 -2.55 9.08 —
Swipe or scroll right for more data
As of 7 Dec 2023 Period and Annualized Total Returns (%) As of 30 Sep 2023 Expense Ratio (%)
NAV ($)YTD
Return
(%)		 Since Inception
(30 Dec 2005)		 15Y10Y5Y3Y1Y3MOTotal
Investor (DHMAX) 23.86 3.56 7.39 8.78 6.50 4.00 11.01 5.94 -7.12 1.21
Class I (DHMIX) 24.22 3.90 7.73 9.11 6.80 4.30 11.32 6.27 -7.02 0.92
Class Y (DHMYX) 24.31 4.02 7.68 9.13 6.94 4.43 11.44 6.39 -7.00 0.80
Russell 2500 Index — — 8.01 9.47 7.90 4.55 8.39 11.28 -4.78 —
Russell 2500 Value Index — — 7.03 8.30 6.95 3.99 13.32 11.34 -3.66 —
Swipe or scroll right for more data
Standardized Returns (Annualized Total Returns as of 30 Sep 2023 )

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. Performance assumes reinvestment of all distributions. Returns for periods less than one year are not annualized. Class Y shares include performance based on Investor shares for the Small-Mid Cap Fund which was achieved prior to the creation of Class Y shares.

Calendar Year Returns (%)

Year Class I (DHMIX) Russell 2500 IndexRussell 2500 Value Index
2022 -13.62 -18.37 -13.08
2021 31.14 18.18 27.78
2020 1.31 19.99 4.88
2019 27.74 27.77 23.56
2018 -12.56 -10.00 -12.36
2017 8.63 16.81 10.36
2016 18.18 17.59 25.20
2015 1.32 -2.90 -5.49
2014 7.36 7.07 7.11
2013 41.64 36.80 33.32
2012 15.74 17.88 19.21
2011 -3.86 -2.51 -3.36
2010 23.43 26.71 24.82
2009 41.36 34.39 27.68
2008 -29.77 -36.79 -31.99

"We focus on long-term business fundamentals and valuations rather than perfrect timing or price volatility. We believe solid businesses with attractive valuations eventually yield positive results."

—Chris Welch, CFA, Portfolio Manager

Learn more about our philosophy

Statistics

Portfolio Characteristics2 As of 30 Sep 2023

Distribution Frequency Annual
Median Market Capitialization $5.0B
Portfolio Turnover (12 months trailing) 15%
Active Share 96%
Number of Equity Holdings in Portfolio 56

Five-Year Risk Statistics As of 30 Sep 2023 (Class I Shares)

vs Russell 2500 Index vs Russell 2500 Value Index
Standard Deviation 23.84% 23.84%
Beta 0.98% 0.96%
Sharpe Ratio 0.22 0.22
Alpha 0.02% 0.37%
R-Squared 92.69% 96.81%

Since Inception Upside/Downside Capture As of 30 Sep 2023 (Class I Shares)

vs Russell 2500 Index 92%/91%
vs Russell 2500 Value Index 94%/89%

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Portfolio

Portfolio Guidelines

  • Typically 50—70 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 $500 million and $10 billion (or, if greater, the maximum market capitalization of companies generally within the capitalization range of the Russell 2500 Index) at the time of purchase.

Top Ten Equity Holdings3 As of 30 Sep 2023

  Sector % of Net Assets
WESCO International, Inc. Industrials 5.7
Red Rock Resorts, Inc. (Cl A) Cons. Discretionary 4.6
Post Holdings, Inc. Consumer Staples 4.1
NVR, Inc. Cons. Discretionary 3.7
Ashland Global Holdings, Inc. Materials 3.5
CubeSmart Real Estate 3.1
ESAB Corp. Industrials 3.1
Webster Financial Corp. Financials 3.1
Cal-Maine Foods, Inc. Consumer Staples 3.0
Regal Rexnord Corp. Industrials 3.0
Total as % of Net Assets 37.0%
Fund Holdings - 31 Oct 2023

Sector Allocation4 (%) As of 30 Sep 2023

Russell 2500 Index
Russell 2500 Value Index

Distributions

Income Short-Term Long-Term Record Date Pay Date Reinvestment NAV
Investor (DHMAX) 0.1188 — — 28 Dec 2022 30 Dec 2022 23.12
Investor (DHMAX) — — 1.0347 13 Dec 2022 15 Dec 2022 23.64
Class I (DHMIX) 0.1906 — — 28 Dec 2022 30 Dec 2022 23.39
Class I (DHMIX) — — 1.0347 13 Dec 2022 15 Dec 2022 23.99
Class Y (DHMYX) 0.2227 — — 28 Dec 2022 30 Dec 2022 23.45
Class Y (DHMYX) — — 1.0347 13 Dec 2022 15 Dec 2022 24.08
Investor (DHMAX) 0.0543 — — 29 Dec 2021 31 Dec 2021 28.02
Investor (DHMAX) — — 1.5037 13 Dec 2021 15 Dec 2021 27.12
Class I (DHMIX) 0.1302 — — 29 Dec 2021 31 Dec 2021 28.34
Class I (DHMIX) — — 1.5037 13 Dec 2021 15 Dec 2021 27.50
Class Y (DHMYX) 0.1623 — — 29 Dec 2021 31 Dec 2021 28.41
Class Y (DHMYX) — — 1.5037 13 Dec 2021 15 Dec 2021 27.60
Investor (DHMAX) 0.1021 — — 29 Dec 2020 31 Dec 2020 22.63
Investor (DHMAX) — — 0.0092 11 Dec 2020 15 Dec 2020 22.07
Class C (DHMCX) — — 0.0092 11 Dec 2020 15 Dec 2020 19.78
Class I (DHMIX) 0.1583 — — 29 Dec 2020 31 Dec 2020 22.87
Class I (DHMIX) — — 0.0092 11 Dec 2020 15 Dec 2020 22.35
Class Y (DHMYX) 0.1836 — — 29 Dec 2020 31 Dec 2020 22.92
Class Y (DHMYX) — — 0.0092 11 Dec 2020 15 Dec 2020 22.43
Investor (DHMAX) 0.1441 — — 27 Dec 2019 31 Dec 2019 22.51
Investor (DHMAX) — — 0.9415 11 Dec 2019 13 Dec 2019 22.36
Class C (DHMCX) — — 0.9415 11 Dec 2019 13 Dec 2019 20.07
Class I (DHMIX) 0.2067 — — 27 Dec 2019 31 Dec 2019 22.74
Class I (DHMIX) — — 0.9415 11 Dec 2019 13 Dec 2019 22.64
Class Y (DHMYX) 0.2325 — — 27 Dec 2019 31 Dec 2019 22.78
Class Y (DHMYX) — — 0.9415 11 Dec 2019 13 Dec 2019 22.71
Investor (DHMAX) 0.0356 — — 27 Dec 2018 31 Dec 2018 18.47
Investor (DHMAX) — — 0.8036 12 Dec 2018 14 Dec 2018 19.53
Class C (DHMCX) — — 0.8036 12 Dec 2018 14 Dec 2018 17.71
Class I (DHMIX) 0.1029 — — 27 Dec 2018 31 Dec 2018 18.65
Class I (DHMIX) — — 0.8036 12 Dec 2018 14 Dec 2018 19.78
Class Y (DHMYX) 0.1303 — — 27 Dec 2018 31 Dec 2018 18.68
Class Y (DHMYX) — — 0.8036 12 Dec 2018 14 Dec 2018 19.85
Investor (DHMAX) 0.0295 — — 27 Dec 2017 29 Dec 2017 22.37
Investor (DHMAX) — 0.0704 0.5971 13 Dec 2017 15 Dec 2017 21.91
Class C (DHMCX) — 0.0704 0.5971 13 Dec 2017 15 Dec 2017 20.07
Class I (DHMIX) 0.1090 — — 27 Dec 2017 29 Dec 2017 22.58
Class I (DHMIX) — 0.0704 0.5971 13 Dec 2017 15 Dec 2017 22.19
Class Y (DHMYX) 0.1302 — — 27 Dec 2017 29 Dec 2017 22.63
Class Y (DHMYX) — 0.0704 0.5971 13 Dec 2017 15 Dec 2017 22.25
Investor (DHMAX) 0.0119 — — 28 Dec 2016 30 Dec 2016 21.22
Investor (DHMAX) — — 0.3569 14 Dec 2016 16 Dec 2016 21.22
Class C (DHMCX) — — 0.3569 14 Dec 2016 16 Dec 2016 19.62
Class I (DHMIX) 0.0686 — — 28 Dec 2016 30 Dec 2016 21.43
Class I (DHMIX) — — 0.3569 14 Dec 2016 16 Dec 2016 21.47
Class Y (DHMYX) 0.0839 — — 28 Dec 2016 30 Dec 2016 21.46
Class Y (DHMYX) — — 0.3569 14 Dec 2016 16 Dec 2016 21.53
Investor (DHMAX) 0.0279 — — 29 Dec 2015 31 Dec 2015 18.41
Investor (DHMAX) — — 0.1911 16 Dec 2015 18 Dec 2015 18.24
Class C (DHMCX) — — 0.1911 16 Dec 2015 18 Dec 2015 16.99
Class I (DHMIX) 0.0615 — — 29 Dec 2015 31 Dec 2015 18.57
Class I (DHMIX) — — 0.1911 16 Dec 2015 18 Dec 2015 18.43
Class Y (DHMYX) 0.0799 — — 29 Dec 2015 31 Dec 2015 18.59
Class Y (DHMYX) — — 0.1911 16 Dec 2015 18 Dec 2015 18.47
Investor (DHMAX) 0.0178 — — 29 Dec 2014 31 Dec 2014 18.48
Investor (DHMAX) — 0.0604 0.5782 16 Dec 2014 18 Dec 2014 17.91
Class C (DHMCX) — 0.0604 0.5782 16 Dec 2014 18 Dec 2014 16.81
Class I (DHMIX) 0.0613 — — 29 Dec 2014 31 Dec 2014 18.63
Class I (DHMIX) — 0.0604 0.5782 16 Dec 2014 18 Dec 2014 18.09
Class Y (DHMYX) 0.0853 — — 29 Dec 2014 31 Dec 2014 18.64
Class Y (DHMYX) — 0.0604 0.5782 16 Dec 2014 18 Dec 2014 18.13
Investor (DHMAX) 0.0334 — — 27 Dec 2013 31 Dec 2013 17.68
Investor (DHMAX) — 0.2181 0.5391 16 Dec 2013 18 Dec 2013 17.19
Class C (DHMCX) — 0.2181 0.5391 16 Dec 2013 18 Dec 2013 16.26
Class I (DHMIX) 0.0578 — — 27 Dec 2013 31 Dec 2013 17.81
Class I (DHMIX) — 0.2181 0.5391 16 Dec 2013 18 Dec 2013 17.34
Class Y (DHMYX) 0.0747 — — 27 Dec 2013 31 Dec 2013 17.82
Class Y (DHMYX) — 0.2181 0.5391 16 Dec 2013 18 Dec 2013 17.36
Investor (DHMAX) 0.0031 0.0811 0.2968 28 Dec 2012 31 Dec 2012 12.92
Class C (DHMCX) 0.0000 0.0811 0.2968 28 Dec 2012 31 Dec 2012 12.34
Class I (DHMIX) 0.0392 0.0811 0.2968 28 Dec 2012 31 Dec 2012 13.00
Class Y (DHMYX) 0.0615 0.0811 0.2968 28 Dec 2012 31 Dec 2012 13.00
Investor (DHMAX) — — 0.3219 14 Dec 2011 15 Dec 2011 11.32
Class C (DHMCX) — — 0.3219 14 Dec 2011 15 Dec 2011 10.91
Class I (DHMIX) 0.0108 — — 28 Dec 2011 29 Dec 2011 11.84
Class I (DHMIX) — — 0.3219 14 Dec 2011 15 Dec 2011 11.40
Investor (DHMAX) 0.0000 — — 29 Dec 2010 30 Dec 2010 12.61
Investor (DHMAX) — — 0.0038 15 Dec 2010 16 Dec 2010 12.48
Class C (DHMCX) 0.0000 — — 29 Dec 2010 30 Dec 2010 12.25
Class C (DHMCX) — — 0.0038 15 Dec 2010 16 Dec 2010 12.13
Class I (DHMIX) 0.0133 — — 29 Dec 2010 30 Dec 2010 12.65
Class I (DHMIX) — — 0.0038 15 Dec 2010 16 Dec 2010 12.54
Investor (DHMAX) 0.0000 — — 29 Dec 2009 30 Dec 2009 10.33
Class C (DHMCX) 0.0000 — — 29 Dec 2009 30 Dec 2009 10.10
Class I (DHMIX) 0.0186 — — 29 Dec 2009 30 Dec 2009 10.34
Investor (DHMAX) 0.0870 — — 29 Dec 2008 30 Dec 2008 7.07
Investor (DHMAX) — — — 15 Dec 2008 16 Dec 2008 7.19
Class C (DHMCX) 0.0718 — — 29 Dec 2008 30 Dec 2008 6.97
Class C (DHMCX) — — — 15 Dec 2008 16 Dec 2008 7.07
Class I (DHMIX) 0.1207 — — 29 Dec 2008 30 Dec 2008 7.07
Class I (DHMIX) — — — 15 Dec 2008 16 Dec 2008 7.21
Investor (DHMAX) 0.0393 — — 27 Dec 2007 28 Dec 2007 10.54
Investor (DHMAX) — 0.0639 0.2118 11 Dec 2007 12 Dec 2007 10.71
Class C (DHMCX) 0.0000 — — 27 Dec 2007 28 Dec 2007 10.44
Class C (DHMCX) — 0.0639 0.2118 11 Dec 2007 12 Dec 2007 10.57
Class I (DHMIX) 0.0912 — — 27 Dec 2007 28 Dec 2007 10.54
Class I (DHMIX) — 0.0639 0.2118 11 Dec 2007 12 Dec 2007 10.75
Investor (DHMAX) 0.0130 — — 28 Dec 2006 29 Dec 2006 10.91
Investor (DHMAX) — 0.0588 — 11 Dec 2006 12 Dec 2006 11.03
Class C (DHMCX) 0.0000 — — 28 Dec 2006 29 Dec 2006 10.85
Class C (DHMCX) — 0.0588 — 11 Dec 2006 12 Dec 2006 10.96
Class I (DHMIX) 0.0500 — — 28 Dec 2006 29 Dec 2006 10.91
Class I (DHMIX) — 0.0588 — 11 Dec 2006 12 Dec 2006 11.07
No distributions shown for the selected filter values

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 The Fund may invest in another Diamond Hill Fund. Diamond Hill Capital Management, Inc. is required to permanently waive a portion of its management fee in the pro-rata amount of the management fee charged by the underlying Diamond Hill Fund.

2 Active Share is relative to the Russell 2500 Index.

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. Includes a 0.6% investment in the Diamond Hill Short Duration Securitized Bond Fund.

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