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 at least 80% of its net assets in medium market capitalization
companies, defined as those 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 Holdings
As Of June 30, 2020

Post Holdings, Inc. Consumer Staples 4.1%
Loews Corp. Financials 4.0
CubeSmart Real Estate 3.0
BorgWarner, Inc. Cons. Discretionary 2.9
First Republic Bank Financials 2.7
Colfax Corp. Industrials 2.5
NVR, Inc. Cons. Discretionary 2.5
Parker-Hannifin Corp. Industrials 2.5
UGI Corp. Utilities 2.4
Check Point Software Technologies Ltd. Info. Technology 2.4
Total As % Of Net Assets 29.2%
Total Number Of Equity Holdings 57

This is presented as supplemental information.

Sector Allocation1
As Of June 30, 2020

Mid Cap Composite Russell Midcap Index Russell Midcap Value Index
Financials 25.5% 11.4% 15.5%
Industrials 15.4 14.8 16.5
Cons. Discretionary 14.7 11.1 11.2
Consumer Staples 8.5 4.4 4.5
Real Estate 7.5 7.7 11.1
Info. Technology 7.0 19.6 9.7
Materials 4.6 5.1 6.7
Utilities 3.7 5.9 9.1
Health Care 2.1 13.0 7.7
Energy 2.1 3.0 4.4
Communication
Services
1.4 4.0 3.7
Cash & Other 7.4 0.0 0.0

This is presented as supplemental information.

Portfolio Characteristics Vs. Benchmark2

As Of June 30, 2020

Mid Cap Composite Russell Midcap Index Russell Midcap Value Index
Median Forward P/E 18.9x 23.3x 21.5x
Median Trailing P/E 17.8x 22.2x 20.2x
Weighted Average Dividend Yield 2.0% 2.0% 2.8%
Median Price / Book 1.6x 2.8x 2.2x
Median Price / Sales 1.6x 2.2x 1.8x
Median Market Cap. $5.4B $7.3B $6.8B
Weighted Average Market Cap. $10.2B $15.6B $13.9B
Portfolio Turnover 5 Year 30% —   —  
Active Share3 vs. Core4 / Value5 Benchmark 95% / 93% —   —  
Upside/Downside Capture Ratio6 vs. Core Benchmark4 90% / 107% —   —  
Upside/Downside Capture Ratio6 vs. Value Benchmark5 99% / 103% —   —  

This is presented as supplemental information.

1 Cash & Other may include cash, treasuries, money market funds, and short duration fixed income funds. Includes a 0.2% investment in the Diamond Hill Short Duration Total Return Strategy.

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 Midcap Index is the core benchmark.

The Russell Midcap Value Index is the value benchmark.

Source: eVestment Analytics based on monthly returns (gross of fees) from 1/1/14 – 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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