Portfolio Guidelines

  • Typically 20 positions
  • Maximum position size is 10%
  • Top 10 holdings are typically greater than 50% of net assets
  • Maximum industry exposure is 25%
  • Maximum sector exposure is 35%

Market Capitalization

Holdings are derived from the largest holdings in the Diamond Hill Large Cap strategy. The Large Cap strategy typically invests in large-capitalization companies with a market capitalization of $5 billion or greater.

 

Top Ten Equity Holdings
As Of December 31, 2017

Citigroup, Inc. Financials 7.9%
Abbott Laboratories Health Care 7.2
JPMorgan Chase & Co. Financials 7.1
Microsoft Corp. Info. Technology 6.0
Discover Financial Services Financials 5.8
United Technologies Corp. Industrials 5.7
Morgan Stanley Financials 5.7
Pfizer, Inc. Health Care 5.1
Apple, Inc. Info. Technology 4.9
Alphabet, Inc. (Cl A) Info. Technology 4.8
Total As % Of Net Assets 60.2%
Total Number Of Equity Holdings 19

Sector Allocation1
As Of December 31, 2017

Large Cap Concentrated Composite Russell 1000 Index Russell 1000 Value Index
Financials 30.2% 14.9% 26.6%
Info. Technology 15.6 23.4 8.6
Cons. Discretionary 15.4 13.1 7.9
Health Care 12.3 13.1 13.5
Consumer Staples 12.1 7.1 7.5
Industrials 5.7 10.5 8.3
Energy 4.3 5.9 11.0
Real Estate 0.0 3.6 4.7
Materials 0.0 3.4 3.0
Utilities 0.0 2.9 5.9
Telecom 0.0 2.0 3.0
Cash & Other 4.4 0.0 0.0

Portfolio Characteristics Vs. Benchmark2

As Of December 31, 2017

Large Cap Concentrated Composite Russell 1000 Index Russell 1000 Value Index
Median Forward P/E 19.4x 21.2x 19.9x
Median Trailing P/E 21.9x 24.6x 22.4x
Weighted Average Dividend Yield 1.9% 1.8% 2.3%
Median Price / Book 3.5x 3.1x 2.4x
Median Price / Sales 2.9x 2.6x 2.2x
Median Market Cap. $101.9B $10.1B $9.4B
Weighted Average Market Cap. $211.8B $162.8B $119.5B
Portfolio Turnover 5 Year 24% —   —  
Active Share3 vs. Core4 / Value5 Benchmark 86% / 88% —   —  
Upside/Downside Capture Ratio6 vs. Core Benchmark4 101% / 105% —   —  
Upside/Downside Capture Ratio6 vs. Value Benchmark5 105% / 100% —   —  

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

2 Source: FactSet.

3 Source: Morningstar Direct. 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 quarterly returns (gross of fees) from 1/1/12 – 12/31/17.

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