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, 2018

Abbott Laboratories Health Care 8.3%
Citigroup, Inc. Financials 7.2
Alphabet, Inc. (Cl A) Communication Services 6.1
Berkshire Hathaway, Inc. (Cl B) Financials 6.0
Discover Financial Services Financials 6.0
MetLife, Inc. Financials 5.6
Pfizer, Inc. Health Care 4.8
United Technologies Corp. Industrials 4.7
TJX Cos., Inc. Cons. Discretionary 4.6
JPMorgan Chase & Co. Financials 4.6
Total As % Of Net Assets 58.2%
Total Number Of Equity Holdings 20

This is presented as supplemental information.

Sector Allocation1
As Of December 31, 2018

Large Cap Concentrated Composite Russell 1000 Index Russell 1000 Value Index
Financials 29.5% 13.5% 22.5%
Health Care 17.5 15.0 15.7
Communication
Services
12.9 9.6 7.3
Consumer Staples 12.6 6.4 6.7
Cons. Discretionary 11.3 10.7 6.4
Industrials 4.7 9.6 7.4
Info. Technology 4.6 20.3 9.3
Energy 3.1 5.1 9.3
Real Estate 0.0 3.6 4.9
Utilities 0.0 3.3 6.5
Materials 0.0 3.0 4.1
Cash & Other 3.7 0.0 0.0

This is presented as supplemental information.

Portfolio Characteristics Vs. Benchmark2

As Of December 31, 2018

Large Cap Concentrated Composite Russell 1000 Index Russell 1000 Value Index
Median Forward P/E 14.4x 16.4x 14.1x
Median Trailing P/E 16.1x 18.6x 16.7x
Weighted Average Dividend Yield 2.3% 2.1% 2.8%
Median Price / Book 3.1x 2.6x 1.9x
Median Price / Sales 1.9x 2.2x 1.8x
Median Market Cap. $127.1B $8.7B $8.2B
Weighted Average Market Cap. $177.0B $167.2B $111.7B
Portfolio Turnover 5 Year 27% —   —  
Active Share3 vs. Core4 / Value5 Benchmark 85% / 83% —   —  
Upside/Downside Capture Ratio6 vs. Core Benchmark4 100% / 104% —   —  
Upside/Downside Capture Ratio6 vs. Value Benchmark5 107% / 102% —   —  

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 monthly returns (gross of fees) from 1/1/12 – 12/31/18.

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