Portfolio Guidelines

  • Typically 50–70 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 small- and mid-capitalization companies defined as those companies with a market capitalization between $500 million and $10 billion (or if greater, the maximum market capitalization of companies generally within the capitalization range of the Russell 2500 Index), at the time of purchase.

Top Ten Equity Holdings
As Of June 30, 2020

Post Holdings, Inc. Consumer Staples 4.1%
CubeSmart Real Estate 3.1
BorgWarner, Inc. Cons. Discretionary 2.9
NVR, Inc. Cons. Discretionary 2.5
Colfax Corp. Industrials 2.5
UGI Corp. Utilities 2.4
Hub Group, Inc. (Cl A) Industrials 2.4
Kirby Corp. Industrials 2.3
Sensata Technologies Holding PLC Industrials 2.3
Ashland Global Holdings, Inc. Materials 2.3
Total As % Of Net Assets 26.8%
Total Number Of Equity Holdings 62

This is presented as supplemental information.

Sector Allocation1
As Of June 30, 2020

Small-Mid Cap Composite Russell 2500 Index Russell 2500 Value Index
Financials 22.0% 14.5% 21.1%
Industrials 17.9 14.8 17.1
Cons. Discretionary 15.1 11.8 12.1
Consumer Staples 8.9 3.3 3.6
Real Estate 8.1 8.8 12.7
Materials 5.7 5.2 6.5
Info. Technology 5.2 17.1 8.9
Utilities 3.8 3.2 4.5
Energy 2.2 2.4 3.9
Health Care 2.1 16.0 6.7
Communication
Services
1.4 3.0 3.1
Cash & Other 7.6 0.0 0.0

This is presented as supplemental information.

Portfolio Characteristics Vs. Benchmark2

As Of June 30, 2020

Small-Mid Cap Composite Russell 2500 Index Russell 2500 Value Index
Median Forward P/E 21.0x 19.9x 17.7x
Median Trailing P/E 20.4x 17.3x 14.8x
Weighted Average Dividend Yield 2.0% 2.0% 2.9%
Median Price / Book 1.7x 1.9x 1.3x
Median Price / Sales 1.4x 1.8x 1.4x
Median Market Cap. $4.2B $1.0B $0.9B
Weighted Average Market Cap. $6.4B $4.7B $4.4B
Portfolio Turnover 5 Year 26% —   —  
Active Share3 vs. Core4 / Value5 Benchmark 95% / 93% —   —  
Upside/Downside Capture Ratio6 vs. Core Benchmark4 91% / 92% —   —  
Upside/Downside Capture Ratio6 vs. Value Benchmark5 96% / 90% —   —  

This is presented as supplemental information.

1 Cash & Other may include cash, treasuries, money market funds, and short duration fixed income funds. Includes a 1.2% 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 2500 Index is the core benchmark.

The Russell 2500 Value Index is the value benchmark.

6 Source: eVestment Analytics based on monthly returns (gross of fees) from 1/1/06 – 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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