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 large-capitalization companies with a market capitalization of $5 billion or greater.

Top Ten Equity Holdings
As Of June 30, 2020

Abbott Laboratories Health Care 4.6%
American International Group, Inc. Financials 3.5
Berkshire Hathaway, Inc. (Cl B) Financials 3.4
Citigroup, Inc. Financials 3.3
Procter & Gamble Co. Consumer Staples 3.1
PepsiCo, Inc. Consumer Staples 3.1
Mondelez International, Inc. (Cl A) Consumer Staples 3.0
Walt Disney Co. Communication Services 2.8
Alphabet, Inc. (Cl A) Communication Services 2.7
KKR & Co., Inc. (Cl A) Financials 2.6
Total As % Of Net Assets 32.1%
Total Number Of Equity Holdings 50

This is presented as supplemental information.

Sector Allocation1
As Of June 30, 2020

Large Cap Composite Russell 1000 Index Russell 1000 Value Index
Financials 24.2% 10.2% 18.5%
Health Care 14.5 14.6 14.1
Consumer Staples 14.0 5.9 6.9
Cons. Discretionary 13.9 11.9 8.2
Communication
Services
11.3 10.2 9.3
Info. Technology 7.8 27.4 10.2
Industrials 5.2 8.4 12.3
Materials 2.8 2.6 4.5
Energy 2.4 2.6 5.3
Real Estate 1.0 3.4 4.7
Utilities 0.0 2.9 5.9
Cash & Other 2.7 0.0 0.0

This is presented as supplemental information.

Portfolio Characteristics Vs. Benchmark2

As Of June 30, 2020

Large Cap Composite Russell 1000 Index Russell 1000 Value Index
Median Forward P/E 21.4x 23.5x 21.4x
Median Trailing P/E 20.5x 22.6x 20.4x
Weighted Average Dividend Yield 2.3% 1.9% 2.9%
Median Price / Book 4.1x 3.0x 2.3x
Median Price / Sales 2.7x 2.5x 2.0x
Median Market Cap. $68.3B $9.8B $8.5B
Weighted Average Market Cap. $163.9B $341.9B $106.0B
Portfolio Turnover 5 Year 26% —   —  
Active Share3 vs. Core4 / Value5 Benchmark 80% / 78% —   —  
Upside/Downside Capture Ratio6 vs. Core Benchmark4 103% / 96% —   —  
Upside/Downside Capture Ratio6 vs. Value Benchmark5 106% / 93% —   —  

This is presented as supplemental information.

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

2 Source: FactSet.

3 Source: FactSet. Active share measures the difference between portfolio holdings and the benchmark. The higher the active share, the greater the difference.

4 The Russell 1000 Index is the core benchmark.

5 The Russell 1000 Value Index is the value benchmark.

6 Source: eVestment Analytics based on monthly returns (gross of fees) from 7/1/01 – 6/30/20.

Index data source: London Stock Exchange Group PLC. See diamond-hill.com/disclosures for a full copy of the disclaimer.

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