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 June 30, 2018

Abbott Laboratories Health Care 7.8%
Citigroup, Inc. Financials 7.2
Alphabet, Inc. (Cl A) Info. Technology 6.2
Discover Financial Services Financials 6.2
Microsoft Corp. Info. Technology 5.6
United Technologies Corp. Industrials 5.5
MetLife, Inc. Financials 5.0
Devon Energy Corp. Energy 4.9
TJX Cos., Inc. Cons. Discretionary 4.8
Aetna, Inc. Health Care 4.6
Total As % Of Net Assets 57.8%
Total Number Of Equity Holdings 20

Sector Allocation1
As Of June 30, 2018

Large Cap Concentrated Composite Russell 1000 Index Russell 1000 Value Index
Financials 27.2% 14.0% 23.3%
Health Care 17.0 13.6 13.9
Info. Technology 15.8 25.6 9.9
Cons. Discretionary 15.2 13.6 9.3
Consumer Staples 12.5 6.0 6.3
Industrials 5.5 9.9 7.9
Energy 4.9 6.1 11.1
Real Estate 0.0 3.6 4.9
Materials 0.0 3.0 4.1
Utilities 0.0 2.9 5.7
Telecom 0.0 1.9 3.6
Cash & Other 1.8 0.0 0.0

Portfolio Characteristics Vs. Benchmark2

As Of June 30, 2018

Large Cap Concentrated Composite Russell 1000 Index Russell 1000 Value Index
Median Forward P/E 18.1x 18.5x 16.6x
Median Trailing P/E 19.3x 22.7x 20.4x
Weighted Average Dividend Yield 2.0% 1.8% 2.5%
Median Price / Book 3.3x 3.1x 2.3x
Median Price / Sales 2.4x 2.6x 2.2x
Median Market Cap. $138.9B $10.3B $9.8B
Weighted Average Market Cap. $218.2B $188.4B $110.8B
Portfolio Turnover 5 Year 27% —   —  
Active Share3 vs. Core4 / Value5 Benchmark 86% / 85% —   —  
Upside/Downside Capture Ratio6 vs. Core Benchmark4 99% / 106% —   —  
Upside/Downside Capture Ratio6 vs. Value Benchmark5 106% / 101% —   —  

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 monthly returns (gross of fees) from 1/1/12 – 6/30/18.

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