Portfolio Guidelines

  • Typically 50–80 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 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 September 30, 2020

Vail Resorts, Inc. Cons. Discretionary 5.1%
Sterling Bancorp Financials 4.1
Cal-Maine Foods, Inc. Consumer Staples 3.9
CubeSmart Real Estate 3.9
Red Rock Resorts, Inc. (Cl A) Cons. Discretionary 3.8
Bank OZK Financials 3.6
Live Nation Entertainment, Inc. Communication Services 3.6
WNS (Holdings) Ltd. ADR Info. Technology 3.5
Enstar Group Ltd. Financials 3.3
Colfax Corp. Industrials 2.8
Total As % Of Net Assets 37.4%
Total Number Of Equity Holdings 54

This is presented as supplemental information.

Sector Allocation1
As Of September 30, 2020

Small Cap Composite Russell 2000 Index Russell 2000 Value Index
Financials 24.2% 14.8% 26.6%
Industrials 17.5 15.2 16.8
Cons. Discretionary 16.9 13.5 13.3
Consumer Staples 10.1 3.4 3.7
Info. Technology 6.6 13.5 6.0
Real Estate 5.5 6.6 9.9
Materials 4.1 4.0 5.6
Communication
Services
3.6 2.3 2.4
Utilities 3.1 3.2 5.0
Health Care 3.1 21.6 6.9
Energy 1.1 1.9 3.9
Cash & Other 4.1 0.0 0.0

This is presented as supplemental information.

Portfolio Characteristics Vs. Benchmark2

As Of September 30, 2020

Small Cap Composite Russell 2000 Index Russell 2000 Value Index
Median Forward P/E 21.8x 17.3x 14.7x
Median Trailing P/E 29.0x 17.7x 13.9x
Weighted Average Dividend Yield 1.9% 1.6% 2.9%
Median Price / Book 1.5x 1.8x 1.2x
Median Price / Sales 1.4x 1.8x 1.4x
Median Market Cap. $3.0B $0.6B $0.5B
Weighted Average Market Cap. $4.2B $2.3B $1.8B
Portfolio Turnover 5 Year 20% —   —  
Active Share3 vs. Core4 / Value5 Benchmark 98% / 97% —   —  
Upside/Downside Capture Ratio6 vs. Core Benchmark4 85% / 81% —   —  
Upside/Downside Capture Ratio6 vs. Value Benchmark5 91% / 85% —   —  

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 2000 Index is the core benchmark.

The Russell 2000 Value Index is the value benchmark.

6 Source: eVestment Analytics based on monthly returns (gross of fees) from 1/1/01 – 9/30/20.

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

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