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 March 31, 2018

Abbott Laboratories Health Care 8.3%
Citigroup, Inc. Financials 7.1
Microsoft Corp. Info. Technology 6.6
United Technologies Corp. Industrials 5.8
Discover Financial Services Financials 5.6
MetLife, Inc. Financials 5.4
JPMorgan Chase & Co. Financials 5.4
Apple, Inc. Info. Technology 5.0
Berkshire Hathaway, Inc. (Cl B) Financials 5.0
Alphabet, Inc. (Cl A) Info. Technology 4.8
Total As % Of Net Assets 59.0%
Total Number Of Equity Holdings 20

Sector Allocation1
As Of March 31, 2018

Large Cap Concentrated Composite Russell 1000 Index Russell 1000 Value Index
Financials 28.5% 14.9% 27.1%
Info. Technology 16.4 24.5 9.3
Health Care 16.2 13.1 13.6
Cons. Discretionary 15.4 13.4 7.8
Consumer Staples 12.2 6.7 7.0
Industrials 5.8 10.5 8.2
Energy 3.4 5.6 10.7
Real Estate 0.0 3.4 4.6
Materials 0.0 3.2 2.9
Utilities 0.0 2.8 5.9
Telecom 0.0 1.9 2.9
Cash & Other 2.0 0.0 0.0

Portfolio Characteristics Vs. Benchmark2

As Of March 31, 2018

Large Cap Concentrated Composite Russell 1000 Index Russell 1000 Value Index
Median Forward P/E 16.2x 17.9x 16.5x
Median Trailing P/E 19.6x 22.6x 20.7x
Weighted Average Dividend Yield 2.0% 1.9% 2.5%
Median Price / Book 3.4x 3.0x 2.3x
Median Price / Sales 2.6x 2.4x 2.1x
Median Market Cap. $154.7B $10.4B $9.1B
Weighted Average Market Cap. $235.9B $171.9B $113.8B
Portfolio Turnover 5 Year 25% —   —  
Active Share3 vs. Core4 / Value5 Benchmark 84% / 85% —   —  
Upside/Downside Capture Ratio6 vs. Core Benchmark4 100% / 106% —   —  
Upside/Downside Capture Ratio6 vs. Value Benchmark5 105% / 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 – 3/31/18.

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