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Total Net Assets

$591M
as of 3/31/2021

Inception

December 29, 2000
DHSCX (Investor)
DHSIX (Class I)
DHSYX (Class Y)

Status

Open

Investment Strategy

  • To estimate intrinsic value, the business must be understandable, and we must be able to reasonably forecast its cash flows. We seek businesses with sustainable competitive advantages, conservative balance sheets, and management with an ownership mentality.
  • Investments are sold when the stock price reaches our estimate of intrinsic value, our estimate of intrinsic value is revised such that there is no longer a discount to intrinsic value, a holding reaches our stated maximum position size, or to raise proceeds for a more attractive opportunity.

Team

Chris Welch, CFA

Portfolio Manager

Aaron Monroe, CFA

Portfolio Manager

Kristen Sheffield, CFA, CIPM

Portfolio Specialist

Monthly

As of 4/20/2021 Period and Annualized Total Returns as of 3/31/2021 Expense Ratio
NAVYTD Return Since Inception
(12/29/2000)
20-YR15-YR10-YR5-YR 3-YR 1-YR 3MO. Mar. Total
Investor (DHSCX) 36.28 17.18 9.88 9.56 6.32 7.77 8.32 6.26 80.70 15.89 3.49 1.26
Class I (DHSIX) 36.93 17.28 10.15 9.84 6.66 8.07 8.63 6.56 81.18 15.97 3.51 0.97
Class Y (DHSYX) 36.99 17.35 10.08 9.77 6.58 8.18 8.75 6.69 81.44 16.02 3.51 0.85
Benchmark
Russell 2000 Index 9.27 9.76 8.83 11.68 16.35 14.76 94.85 12.70 1.00
Russell 2000 Value Index 9.46 9.53 7.38 10.06 13.56 11.57 97.05 21.17 5.23
Swipe or scroll right for more data

Quarterly

As of 4/20/2021 Period and Annualized Total Returns as of 3/31/2021 Expense Ratio
NAVYTD Return Since Inception
(12/29/2000)
20-YR15-YR10-YR5-YR 3-YR 1-YR 3MO. Total
Investor (DHSCX) 36.28 17.18 9.88 9.56 6.32 7.77 8.32 6.26 80.70 15.89 1.26
Class I (DHSIX) 36.93 17.28 10.15 9.84 6.66 8.07 8.63 6.56 81.18 15.97 0.97
Class Y (DHSYX) 36.99 17.35 10.08 9.77 6.58 8.18 8.75 6.69 81.44 16.02 0.85
Benchmark
Russell 2000 Index 9.27 9.76 8.83 11.68 16.35 14.76 94.85 12.70
Russell 2000 Value Index 9.46 9.53 7.38 10.06 13.56 11.57 97.05 21.17
Swipe or scroll right for more data

Performance is not guaranteed. The performance data quoted represents past performance; past performance does not guarantee future results. The investment return and principal value of an investment 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 data quoted. Investors may obtain performance information current to the most recent month-end, within 7 business days, at diamond-hill.com.

Performance returns assume reinvestment of all distributions. Returns for the periods less than one year are not annualized. Class I and Y shares include performance based on Investor shares for the Small Cap Fund. These total return figures may reflect the waiver of a portion of a Fund's advisory or administrative fees for certain periods. In such instances, and without such waiver of fees, the total return would have been lower.

Calendar Year Returns

Year Class I (DHSIX) Russell 2000 IndexRussell 2000 Value Index
2020 -0.28 19.96 4.63
2019 21.75 25.52 22.39
2018 -14.88 -11.01 -12.86
2017 10.95 14.65 7.84
2016 14.45 21.31 31.74
2015 -3.47 -4.41 -7.47
2014 4.86 4.89 4.22
2013 40.08 38.82 34.52
2012 13.17 16.35 18.05
2011 -6.91 -4.18 -5.50
2010 23.39 26.85 24.50
2009 29.43 27.17 20.58
2008 -25.69 -33.79 -28.92
2007 -3.41 -1.57 -9.78
2006 7.49 18.37 23.48

Morningstar Ratings (Class I Shares)

Category

Small Value

Fee Level

Below Average

Overall Rating

   

Analyst Rating

The Overall Morningstar RatingTM is based on 402 Small Value funds derived from a weighted average of the performance figures associated with its 3-, 5-, and 10-year Morningstar Ratings as of 3/31/21.

Statistics

Portfolio Statistics1 as of March 31, 2021

Management Fee 0.80%
Distribution Frequency Annual
Median Market Capitialization $4.0B
Portfolio Turnover (12 months trailing) 29%
Active Share 98%
Number of Equity Holdings in Portfolio 55

Five Year Risk Statistics1 as of March 31, 2021 (Class I Shares)

.vs Russell 2000 Index .vs Russell 2000 Value Index
Standard Deviation 20.38% 20.38%
Beta 0.91% 0.87%
Sharpe Ratio 0.46 0.46
Alpha -5.59% -3.08%
R-Squared 88.80% 91.62%

Since Inception Upside/Downside Capture1 as of March 31, 2021 (Class I Shares)

.vs Russell 2000 Index 86%/78%
.vs Russell 2000 Value Index 89%/83%

Portfolio

Portfolio Guidelines

  • Typically 50—80 positions
  • Maximum sector exposure is 30%

Market Capitalization

The Fund typically invests at least 80% of its net assets in small capitalization companies, defined as those companies with a market capitalization below $3.0 billion (or, if greater, the maximum market capitalization of companies generally within the capitalization range of the Russell 2000 Index) at the time of purchase.

Top Ten Equity Holdings as of March 31, 2021

  Sector % of Net Assets
Sterling Bancorp Financials 5.0
Bank OZK Financials 4.6
Red Rock Resorts, Inc. (Cl A) Cons. Discretionary 4.5
Cal-Maine Foods, Inc. Consumer Staples 3.8
Vail Resorts, Inc. Cons. Discretionary 3.6
CubeSmart Real Estate 3.6
Enstar Group Ltd. Financials 3.4
Post Holdings, Inc. Consumer Staples 3.3
WNS Holdings Ltd. Info. Technology 3.0
ProAssurance Corp. Financials 2.8
Total as % of Net Assets 37.7%

Sector Allocation3 as of March 31, 2021

Small Cap Fund Russell 2000 IndexRussell 2000 Value Index
Financials 29.5 15.7 27.0
Cons. Discretionary 15.7 14.7 14.4
Industrials 15.4 15.9 17.1
Consumer Staples 11.4 3.3 3.5
Real Estate 5.2 6.0 8.3
Info. Technology 4.7 12.7 5.6
Health Care 4.0 19.6 6.4
Materials 3.7 4.5 6.3
Utilities 3.2 2.7 3.9
Energy 2.2 2.6 4.9
Communication Services 2.0 2.4 2.6
Cash & Other 3.1 0.0 0.0

Distributions

Income Short-Term Long-Term Record Date Pay Date Reinvestment NAV
Investor (DHSCX) 0.0988 12/29/20 12/31/20 30.90
Class I (DHSIX) 0.1918 12/29/20 12/31/20 31.43
Class Y (DHSYX) 0.2252 12/29/20 12/31/20 31.46
Investor (DHSCX) 0.3387 12/27/19 12/31/19 31.18
Investor (DHSCX) 1.8274 12/11/19 12/13/19 31.11
Class C (DHSMX) 0.0043 12/27/19 12/31/19 26.29
Class C (DHSMX) 1.8274 12/11/19 12/13/19 25.96
Class I (DHSIX) 0.4390 12/27/19 12/31/19 31.71
Class I (DHSIX) 1.8274 12/11/19 12/13/19 31.74
Class Y (DHSYX) 0.4824 12/27/19 12/31/19 31.74
Class Y (DHSYX) 1.8274 12/11/19 12/13/19 31.80
Investor (DHSCX) 2.8330 12/12/18 12/14/18 28.95
Class C (DHSMX) 2.8330 12/12/18 12/14/18 24.61
Class I (DHSIX) 0.0937 12/27/18 12/31/18 27.87
Class I (DHSIX) 2.8330 12/12/18 12/14/18 29.51
Class Y (DHSYX) 0.1150 12/27/18 12/31/18 27.90
Class Y (DHSYX) 2.8330 12/12/18 12/14/18 29.56
Investor (DHSCX) 0.1319 12/27/17 12/29/17 35.84
Investor (DHSCX) 2.2463 12/13/17 12/15/17 35.06
Class C (DHSMX) 2.2463 12/13/17 12/15/17 30.39
Class I (DHSIX) 0.2479 12/27/17 12/29/17 36.37
Class I (DHSIX) 2.2463 12/13/17 12/15/17 35.69
Class Y (DHSYX) 0.2878 12/27/17 12/29/17 36.38
Class Y (DHSYX) 2.2463 12/13/17 12/15/17 35.74
Investor (DHSCX) 0.0037 0.8550 12/14/16 12/16/16 34.48
Class C (DHSMX) 0.0037 0.8550 12/14/16 12/16/16 30.39
Class I (DHSIX) 0.0748 12/28/16 12/30/16 34.97
Class I (DHSIX) 0.0037 0.8550 12/14/16 12/16/16 35.03
Class Y (DHSYX) 0.1014 12/28/16 12/30/16 34.98
Class Y (DHSYX) 0.0037 0.8550 12/14/16 12/16/16 35.08
Investor (DHSCX) 0.0931 12/29/15 12/31/15 31.09
Investor (DHSCX) 0.0357 0.3745 12/16/15 12/18/15 30.82
Class C (DHSMX) 0.0357 0.3745 12/16/15 12/18/15 27.38
Class I (DHSIX) 0.2010 12/29/15 12/31/15 31.49
Class I (DHSIX) 0.0357 0.3745 12/16/15 12/18/15 31.32
Class Y (DHSYX) 0.2376 12/29/15 12/31/15 31.49
Class Y (DHSYX) 0.0357 0.3745 12/16/15 12/18/15 31.36
Investor (DHSCX) 0.0402 1.5337 12/16/14 12/18/14 31.77
Class C (DHSMX) 0.0402 1.5337 12/16/14 12/18/14 28.48
Class I (DHSIX) 0.0547 12/29/14 12/31/14 33.26
Class I (DHSIX) 0.0402 1.5337 12/16/14 12/18/14 32.24
Class Y (DHSYX) 0.0978 12/29/14 12/31/14 33.27
Class Y (DHSYX) 0.0402 1.5337 12/16/14 12/18/14 32.29
Investor (DHSCX) 0.0306 12/27/13 12/31/13 32.57
Investor (DHSCX) 2.0559 12/16/13 12/18/13 31.98
Class C (DHSMX) 2.0559 12/16/13 12/18/13 29.01
Class I (DHSIX) 0.1081 12/27/13 12/31/13 29.57
Class I (DHSIX) 2.0559 12/16/13 12/18/13 32.42
Class Y (DHSYX) 0.1460 12/27/13 12/31/13 32.95
Class Y (DHSYX) 2.0559 12/16/13 12/18/13 32.45
Investor (DHSCX) 0.0863 0.1354 0.8175 12/28/12 12/31/12 24.54
Class C (DHSMX) 0.0000 0.1354 0.8175 12/28/12 12/31/12 22.56
Class I (DHSIX) 0.1540 0.1354 0.8175 12/28/12 12/31/12 24.80
Class Y (DHSYX) 0.2034 0.1354 0.8175 12/28/12 12/31/12 24.79
Investor (DHSCX) 0.0357 0.8484 12/14/11 12/15/11 22.37
Class C (DHSMX) 0.0357 0.8484 12/14/11 12/15/11 20.72
Class I (DHSIX) 0.0330 12/28/11 12/29/11 23.40
Class I (DHSIX) 0.0357 0.8484 12/14/11 12/15/11 22.62
Investor (DHSCX) 0.0000 12/29/10 12/30/10 25.89
Investor (DHSCX) 0.4062 12/15/10 12/16/10 25.64
Class C (DHSMX) 0.0000 12/29/10 12/30/10 24.23
Class C (DHSMX) 0.4062 12/15/10 12/16/10 24.01
Class I (DHSIX) 0.0000 12/29/10 12/30/10 26.11
Class I (DHSIX) 0.4062 12/15/10 12/16/10 25.86
Investor (DHSCX) 0.0000 12/29/09 12/30/09 21.54
Class C (DHSMX) 0.0000 12/29/09 12/30/09 20.33
Class I (DHSIX) 0.0109 12/29/09 12/30/09 21.63
Investor (DHSCX) 0.1157 12/29/08 12/30/08 16.12
Investor (DHSCX) 0.0259 12/15/08 12/16/08 16.14
Class C (DHSMX) 0.0000 12/29/08 12/30/08 15.33
Class C (DHSMX) 0.0259 12/15/08 12/16/08 15.25
Class I (DHSIX) 0.1892 12/29/08 12/30/08 16.13
Class I (DHSIX) 0.0259 12/15/08 12/16/08 16.23
Investor (DHSCX) 0.0754 12/27/07 12/28/07 22.63
Investor (DHSCX) 0.0087 1.4881 12/11/07 12/12/07 22.90
Class C (DHSMX) 0.0000 12/27/07 12/28/07 21.54
Class C (DHSMX) 0.0087 1.4881 12/11/07 12/12/07 21.73
Class I (DHSIX) 0.1770 12/27/07 12/28/07 22.67
Class I (DHSIX) 0.0087 1.4881 12/11/07 12/12/07 23.04
Investor (DHSCX) 0.0850 12/28/06 12/29/06 25.03
Investor (DHSCX) 0.3490 0.1743 12/11/06 12/12/06 25.33
Class C (DHSMX) 0.0000 12/28/06 12/29/06 24.00
Class C (DHSMX) 0.3490 0.1743 12/11/06 12/12/06 24.21
Class I (DHSIX) 0.1870 12/28/06 12/29/06 25.08
Class I (DHSIX) 0.3490 0.1743 12/11/06 12/12/06 25.47
Investor (DHSCX) 0.0070 12/29/05 12/30/05 23.95
Investor (DHSCX) 0.2145 12/06/05 12/07/05 23.95
Class C (DHSMX) 0.0000 12/29/05 12/30/05 23.08
Class C (DHSMX) 0.2145 12/06/05 12/07/05 23.08
Class I (DHSIX) 0.0370 12/29/05 12/30/05 23.99
Class I (DHSIX) 0.2145 12/06/05 12/07/05 24.01
Investor (DHSCX) 0.3245 12/13/04 12/14/04 20.94
Investor (DHSCX) 0.0880 12/16/03 12/17/03 16.36
Investor (DHSCX) 0.0181 12/17/02 12/18/02 11.12
Investor (DHSCX) 0.0058 12/28/01 12/31/01 12.29
Investor (DHSCX) 0.2456 12/17/01 12/18/01 12.08

Documents

An investor should consider the Fund’s investment objectives, risks, charges and expenses carefully before investing. The prospectus or summary prospectus contain this and other important information about the Fund(s) and are available at diamond-hill.com or by calling 888.226.5595. Please read the prospectus or summary prospectus 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. Diamond Hill Funds are not FDIC insured, may lose value, and have no bank guarantee.

Risk Disclosure: Overall equity market risks may affect the value of all funds. The Small Cap Fund, Small-Mid Cap Fund, Mid Cap Fund, All Cap Select Fund and International Fund invest in small and medium capitalization stocks; there are special risks associated with small and medium capitalization issues such as market illiquidity and greater market volatility than large capitalization issues. The All Cap Select Fund expects to hold a concentrated portfolio of a limited number of securities; because of this a decline in the value of these investments would cause the Fund’s overall value to decline to a greater degree than a less concentrated portfolio. The Long-Short Fund use short selling which incurs significant additional risk. Theoretically, stocks sold short have unlimited risk. The Global Fund and International Fund invest in non-U.S. securities. Investing in non-U.S. securities may entail risk due to foreign economic and political developments; this risk may be higher when investing in emerging markets. Changes in currency exchange rates and differences in accounting and taxation policies outside the U.S. can raise or lower returns.

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

1 Definitions: Active Share measures the difference between portfolio holdings and the benchmark. The higher the active share, the greater the difference. Standard Deviation measures the volatility of the Fund’s returns. Beta measures the Fund’s sensitivity to market movements. Sharpe Ratio uses the Fund’s standard deviation and average excess return over the risk-free ratio to determine reward per unit of risk. Alpha measures excess return relative to the market that is attributable to active portfolio management. R-squared represents the percentage of the portfolio’s movements that can be explained by general market movements. Upside / Downside Capture Ratio measures a manager’s ability to generate excess return above the benchmark return in up markets and retain more of the excess return in down markets. Statistics for periods less than one year are not annualized. Risk statistics are relative to the Russell 2000 Index.

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

The Russell 2000 Index is an unmanaged market capitalization-weighted index comprised of the smallest 2,000 companies by market capitalization in the Russell 3000 Index, which is comprised of the 3,000 largest U.S. companies by total market capitalization. The Russell 2000 Value Index is an unmanaged market capitalization-weighted index measuring the performance of the small cap value segment of the U.S. equity universe including those Russell 2000 Index companies with lower expected growth values. Index data source: London Stock Exchange Group PLC. See diamond-hill.com/disclosures for a full copy of the disclaimer. These indices do not incur fees and expenses (which would lower the return) and are not available for direct investment.

As of 3/31/21, there were 2 gold rated, 10 silver rated, 6 bronze rated, 5 neutral rated, 0 negative rated and 118 not rated funds in the Small 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 Small Cap Fund.

The Morningstar Analyst RatingTM 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 402 Small Value funds as of 3/31/21. The Fund’s Class I rating was 2 stars among 402, 2 stars among 372, 3 stars among 269 Small Value funds for the 3-, 5-, and 10-year periods 3/31/21, respectively.

The Morningstar RatingTM 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.

© 2021 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.