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 September 30, 2017

Citigroup, Inc. Financials 8.1%
Abbott Laboratories Health Care 7.1
JPMorgan Chase & Co. Financials 6.7
Morgan Stanley Financials 6.0
Microsoft Corp. Info. Technology 5.5
United Technologies Corp. Industrials 5.5
Pfizer, Inc. Health Care 5.4
Discover Financial Services Financials 5.1
Philip Morris International, Inc. Consumer Staples 4.9
Procter & Gamble Co. Consumer Staples 4.7
Total As % Of Net Assets 59.3%
Total Number Of Equity Holdings 20

This is presented as supplemental information.

Sector Allocation1
As Of September 30, 2017

Large Cap Concentrated Composite Russell 1000 Index Russell 1000 Value Index
Financials 29.5% 14.8% 26.0%
Cons. Discretionary 17.7 12.7 7.7
Info. Technology 14.9 22.8 8.2
Consumer Staples 12.9 7.2 7.8
Health Care 12.5 13.8 13.9
Industrials 5.5 10.6 8.6
Energy 3.7 5.9 10.9
Real Estate 0.0 3.7 4.8
Materials 0.0 3.3 2.9
Utilities 0.0 3.1 6.2
Telecom 0.0 2.1 3.2
Cash & Other 3.3 0.0 0.0

This is presented as supplemental information.

Portfolio Characteristics Vs. Benchmark2

As Of September 30, 2017

Large Cap Concentrated Composite Russell 1000 Index Russell 1000 Value Index
Median Forward P/E 17.4x 20.5x 19.0x
Median Trailing P/E 20.1x 23.7x 21.1x
Weighted Average Dividend Yield 1.9% 1.8% 2.4%
Median Price / Book 3.3x 3.0x 2.3x
Median Price / Sales 2.8x 2.5x 2.2x
Median Market Cap. $125.8B $9.5B $8.7B
Weighted Average Market Cap. $216.3B $155.3B $113.3B
Portfolio Turnover 5 Year 25% —   —  
Active Share3 vs. Core4 / Value5 Benchmark 85% / 87% —   —  
Upside/Downside Capture Ratio6 vs. Core Benchmark4 102% / 105% —   —  
Upside/Downside Capture Ratio6 vs. Value Benchmark5 104% / 100% —   —  

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: 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 – 9/30/17.

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