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News

Fed Paying Someone to Take The SAT For The Market
March 20, 2019

William Zox, CFA gives his thoughts on the Fed meeting, and what’s in store for fixed income markets and risk assets on Bloomberg Radio, “Fed Paying Someone to Take The SAT For The Market.”

Listen to Bill’s interview:
https://www.bloomberg.com/news/audio/2019-03-20/fed-paying-someone-to-take-the-sat-for-the-market-radio

Diamond Hill Demonstrates Fixed Income Edge
March 18, 2019

We are proud to announce that our High Yield Fund (DHHIX) received a 5-star rating from Morningstar, and that our Corporate Credit Fund (DSIYX) was awarded the 2019 Lipper Fund Award from Refinitiv for best U.S. high yield fund over 5 years.

Read more: Diamond Hill Demonstrates Fixed Income Edge

Standing Out By Not Fitting In
March 18, 2019

Citywire’s article, “Standing Out By Not Fitting In,” explains why we believe our high yield strategies have added value compared to peers, benchmarks and investable passive alternatives over the last five years.

Read the article:
Standing Out By Not Fitting In.”

John McClain Compares High Yield vs Stocks Rally
March 7, 2019

John McClain, CFA discusses high yield’s strong start in 2019, the Fed and ECB, and taking on more interest rate risk than credit risk right now with Oliver Renick on TD Ameritrade Network’s ‘Market on the Close’ segment.

Watch John’s interview here: https://tdameritradenetwork.com/video/rB4AoWk8FgWBaVjMvz8F6A

Gathering Threats Stir Doubts About Auto Sector
March 5, 2019

John McClain, CFA discusses the benefits of owning U.S. automakers’ debt in Sam Goldfarb’s The Wall Street Journal article, “Gathering Threats Stir Doubts About Auto Sector.”

Read the story below (subscription required):
https://www.wsj.com/articles/gathering-threats-stir-doubts-about-auto-sector-11551790803

Corporate credit bonds, the Fed, and positioning your portfolio for the return of volatility
February 27, 2019

William Zox discusses corporate credit bonds, the Fed, and positioning your portfolio for the return of volatility with Oliver Renick on TD Ameritrade Network’s ‘Market on the Close’ segment.

Watch Bill’s interview here: https://tdameritradenetwork.com/video/rB4AoWkXGYGBaTC41TYIbA

Altria’s $11.5bn bond sale meets strong investor demand
February 13, 2019

John McClain, CFA discussed the Fed’s impact on the bond markets in Joe Rennison and Eric Platt’s Financial Times article, “Altria’s $11.5bn bond sale meets strong investor demand.”

Read the story (subscription required):
https://www.ft.com/content/8cc8ff66-2efd-11e9-8744-e7016697f225

Corporate Bonds Are on Fire After the Fed’s Dovish Signal
February 8, 2019

William Zox, CFA discusses a market environment’s impact on bonds in Molly Smith, Rebecca Choong Wilkins and Janine Wolf’s Bloomberg article, “Corporate Bonds Are on Fire After the Fed’s Dovish Signal.”

Read the article (subscription required):
https://www.bloomberg.com/news/articles/2019-02-08/corporate-bonds-on-fire-as-dovish-fed-signal-soothes-investors

Dun & Bradstreet leveraged loan met with lackluster demand
February 7, 2019

John McClain, CFA discusses the sentiment in the bond and loan markets in Joe Rennison, Colby Smith, and Eric Platt’s Financial Times article, “Dun & Bradstreet leveraged loan met with lackluster demand.”

Read the article (subscription required):
https://www.ft.com/content/bbfdf26e-2651-11e9-8ce6-5db4543da632

U.S. junk bonds are back, for now
February 4, 2019

John McClain, CFA discusses how junk bonds will become a more attractive buying opportunity despite recent rebounds in Kate Duguid’s Reuters article, “U.S. junk bonds are back, for now.”

Read the story:
https://www.reuters.com/article/us-usa-junkbonds/u-s-junk-bonds-are-back-for-now-idUSKCN1PS0JF

Diamond Hill's McClain Is Avoiding PE Debt: Q&A
January 28, 2019

John McClain, CFA shares his thoughts on the markets, along with where he sees opportunities and sectors to avoid within fixed income in Katherine Doherty’s Bloomberg Credit Brief Q&A.

Read the article:
https://newsletters.briefs.bloomberg.com/document/gEwKKP-OVx4thpFIi7-Tog–_o1z32k50vd6zh9t47n/insight

What to Look for in The Markets in 2019
January 25, 2019

Portfolio Manager John McClain, CFA discusses the fixed income market, his positive outlook on high yield, the Fed and leveraged loans on Yahoo Finance.

Watch John’s appearance here:
https://finance.yahoo.com/video/look-markets-2019-224421942.html

Bank Earnings, High Yield Bonds, Netflix, Brexit (Podcast)
January 16, 2019

John McClain discusses the Fed, opportunities within the high yield market, and leveraged loans on Bloomberg Radio with Carol Massar and Jason Kelly. Listen to John’s segment at the 7:14 mark below.

https://www.bloomberg.com/news/audio/2019-01-15/bank-earnings-high-yield-bonds-netflix-brexit-podcast

Bond Funds Endure a Year of Economic Anxiety
January 15, 2019

A recent Morningstar article highlighted our Corporate Credit Fund’s performance amongst high yield bond funds in 2018.

Read the article to learn more:
https://www.morningstar.com/articles/907141/bond-funds-endure-a-year-of-economic-anxiety.html

Standardized performance and prospectus information for the Corporate Credit Fund

Bank Earnings, High Yield Bonds, Netflix, Brexit (Podcast)
January 15, 2019

John McClain, CFA discusses the Fed, opportunities within the high yield market, and leveraged loans on Bloomberg Radio with Carol Massar and Jason Kelly.

Listen to John’s segment at the 7:14 mark.

Record outflow from US junk bond funds in 2018
December 30, 2018

John McClain, CFA says the high yield market currently offers investors some compelling opportunities in Joe Rennison’s Financial Times article, “Record outflow from US junk bond funds in 2018.” :

Read the article here (subscription required)

Risk assets are driving market volatility, says CIO
December 28, 2018

William Zox, CFA, our CIO of Fixed Income, discusses how risk assets are driving the market and the role the Fed has played in the recent market slowdown on CNBC Squawk Box.

Watch the video on CNBC

Bill Zox Bloomberg Radio Interview
December 19, 2018

Portfolio Manager William Zox, CFA was recently interviewed on Bloomberg Radio about the impacts of the December Fed meeting on the high yield market, why we believe high yield valuations are approaching attractive levels, and where we’re finding value in the market.

Listen to the interview to learn more.

A Diamond in the Rough
June 25, 2018

Barron’s profiled Corporate Credit Fund portfolio managers Bill Zox and John McClain. Learn how their disciplined approach helps them uncover value and why Barron’s says, “Diamond Hill may be just the thing for investors seeking a more conservative high-yield fund.”

Read the article

Selective in Overlooked High Yield: Diamond Hill Corporate Credit Fund
November 5, 2016

Traditionally, fund managers in the fixed-income space tend to build portfolios based on benchmarks that leave little room for credit selection. Bill Zox and John McClain explain how the Diamond Hill Corporate Credit Fund looks for opportunities where other managers rarely tread, using intensive fundamental research to identify bonds that are likely to outperform the market in the longer term.

Read the article on ticker.com subscription required

Diamond Hill Capital Management Launches Two New Fixed Income Mutual Funds
September 21, 2016
  • Diamond Hill Short Duration Total Return and Diamond Hill Core Bond strategies now available as mutual funds and institutional separate accounts.
  • New portfolio management team brings unique experience to Diamond Hill with consistent intrinsic value philosophy.
Diamond Hill Capital Management Expands Fixed Income Investment Team
June 13, 2016
  • Henry Song and Mark Jackson join Diamond Hill as Portfolio Managers
  • Doug Gimple joins Diamond Hill as Portfolio Specialist
  • Diamond Hill intends to launch two new fixed income strategies
Diamond Hill's Corporate Bond Investment Philosophy, Process and Structural Advantages
February 29, 2016

By Bill Zox, CFA and John McClain, CFA

At Diamond Hill, our mission is to serve our clients by providing lasting value through a shared commitment to our intrinsic value-based investment philosophy, disciplined approach and alignment with our clients’ interests. To this end, we have carefully designed structural advantages that are unique and that should give us an edge over our peers. Below, we provide insight on these advantages, as well as our corporate bond investment philosophy and process.

Read more

Diamond Hill Capital Management Launches High Yield Strategy and Renames Strategic Income Strategy
February 29, 2016
  • High Yield and Corporate Credit provide two options for fixed income investors.
  • Both strategies are supported by Diamond Hill’s extensive research team.
  • Both strategies are available as mutual funds and separate accounts.

As of 12/31/18 there was 3 gold rated, 10 silver rated, 12 bronze rated, 23 neutral rated, 1 negative rated and 182 not rated funds in the U.S. High Yield Bond category.

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, or in the case of exchange-traded funds and index mutual funds, a relevant peer group, over the long term on a risk-adjusted basis. They consider quantitative and qualitative factors in their research, and the weight of each pillar may vary. 

The Analyst Rating scale is Gold, Silver, Bronze, Neutral, and Negative. A Morningstar Analyst Rating of Gold, Silver, or Bronze reflects the Manager Research Group’s conviction in a fund’s prospects for outperformance. 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 global.morningstar.com/managerdisclosures/.

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 Analyst 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 604 high yield bond funds as of 12/31/18. The Fund’s Class I rating was 4 stars among 604, 5 stars among 507, and 3 stars among 329 high yield bond funds for the 3-, 5-, and 10-year periods ended 12/31/18, 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 net expense ratio to the net expense ratio of all the other funds within its Morningstar Category.

© 2019 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.

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