Portfolio Guidelines

  • Typically 30–40 positions
  • Maximum position size is 7%
  • Top 10 holdings are typically greater than 35% of net assets
  • Maximum industry exposure is 20%
  • Maximum sector exposure is 35%

Market Capitalization

The Fund typically invests in securities with a market cap of $500M or greater. We anticipate that each of the Fund’s investments will also be held in one of the other Diamond Hill Funds.

Top Ten Equity Holdings
As Of September 30, 2018

MetLife, Inc.
Berkshire Hathaway, Inc. (Cl B)
Alphabet, Inc. (Cl A)
Communication Services
United Continental Holdings, Inc.
Johnson Controls International PLC
Loews Corp.
Brighthouse Financial, Inc.
Bank OZK
Discover Financial Services
Cimarex Energy Co.
Total As % Of Net Assets 40.4%

Sector Allocation1
As Of September 30, 2018

All Cap Select Fund Russell 3000 Index
Financials 32.8% 13.7%
Industrials 14.8 10.4
Cons. Discretionary 11.8 11.0
Health Care 10.3 14.7
Communication Services 8.2 9.0
Consumer Staples 6.1 5.6
Energy 3.5 5.7
Info. Technology 2.5 20.7
Materials 2.5 2.9
Real Estate 1.1 3.6
Utilities 0.0 2.8
Cash & Other 6.4 0.0

Because this Fund expects to hold a concentrated portfolio of a limited number of securities, a decline in the value of these investments would cause the Fund’s value to decline to a greater degree than a less concentrated portfolio. There are specialized risks associated with small capitalization issues, such as market illiquidity and greater market volatility, than large capitalization issues.

Fund holdings, sector allocations, and portfolio statistics subject to change without notice.

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

The Overall Morningstar Rating™ is based on 1,196 large blend funds as of 9/30/18. The Fund’s Class I rating was 1 stars among 1,196, 2 stars among 1,058, and 3 stars among 794 large blend funds for the 3-, 5-, and 10-year periods ended 9/30/18, 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.

© 2018 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.

2 Definitions: Active Share measures the difference between portfolio holdings and the benchmark. The higher the active share, the greater the difference. Standard Deviation measures the volatility of the Fund’s returns. Beta measures the Fund’s sensitivity to market movements. Sharpe Ratio uses the Fund’s standard deviation and average excess return over the risk-free ratio to determine reward per unit of risk. Alpha measures excess return relative to the market that is attributable to active portfolio management. R-squared represents the percentage of the portfolio’s movements that can be explained by general market movements. Upside / Downside Capture Ratio measures a manager’s ability to generate excess return above the benchmark return in up markets and retain more of the excess return in down markets. Statistics for periods less than one year are not annualized.

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