| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 10.98% | 24.04% | 28.27% |
Diamond Hill's Small Cap Strategy returned 24.04% net in Q2 2026, outperforming the Russell 2000 Index by 255 basis points. The portfolio's outperformance was driven by stock selection in health care and industrials, while an underweight to information technology served as a relative headwind. The manager has steadily increased health care exposure by nearly 800 basis points over the past 12 months, driven by increasing conviction in businesses supported by durable, long-term demand that the market is underappreciating. Defense-oriented and tangible-asset businesses also drove strong performance. Five new positions were initiated during the quarter, including Insteel Industries, BioLife Solutions, InfuSystem, FreightCar America, and Daktronics, while three positions were eliminated. The manager continues to find compelling opportunities in businesses tied to infrastructure investment, defense modernization, and other essential industries where demand remains supported by long-term structural trends. The portfolio remains focused on resilient businesses capable of navigating a wide range of economic environments while maintaining the flexibility and financial strength to invest through periods of uncertainty.
Diamond Hill focuses on resilient small cap businesses with durable demand, strong competitive positions, and disciplined capital allocation that are trading below intrinsic value, with particular conviction in health care, defense, and infrastructure-related opportunities that the market is underappreciating.
The manager continues to find compelling opportunities well beyond the most crowded areas of the market, with emphasis on resilient businesses serving durable, often underappreciated, sources of demand that are well positioned to compound value long term. The manager sees an attractive opportunity set among smaller, underfollowed businesses where volatility has created compelling entry points, and believes careful business selection and disciplined ownership remain the best defense against permanent capital impairment.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Jul 28 2026 | 2026 Q2 | ASTH, AVNS, BLFS, CMPR, DAKT, DCO, ERII, IIIN, INFU, MGY, RAIL, RHP, SAMG, USLM | defense, energy, healthcare, industrials, infrastructure, small caps, value |
ASTH DCO RHP IIIN BLFS INFU RAIL DAKT |
Diamond Hill's Small Cap Strategy outperformed the Russell 2000 by 255 basis points in Q2 2026, driven by stock selection in health care and industrials. The manager has aggressively increased health care exposure by 800 basis points over the past year, seeing compelling opportunities in businesses with durable demand that the market underappreciates. Defense and infrastructure-related holdings also contributed strongly to performance. |
| Apr 28 2026 | 2026 Q1 | DCO, FA, KN, LYTS, MGY, ODC, PAL, PRGS, RRR, UTZ | AI, defense, energy, Geopolitical, healthcare, infrastructure, oil, small caps |
DCO ODC RRR PAL UTZ LYTS KN |
Diamond Hill's Small Cap strategy outperformed in Q1 2026 by capitalizing on geopolitical tensions through energy and defense exposure while avoiding AI-disrupted software. The manager is positioning for continued volatility by focusing on resilient businesses tied to national security infrastructure rebuild and stable basic-needs companies offering compelling returns with narrower outcome ranges. |
| Jan 27 2026 | 2025 Q4 | ALGT, ARE, CIVI, CSR, MVBF, ODC, OZK, POST, RKT, SM, TFIN, TKO, TRNS, WCC | defense, industrials, infrastructure, real estate, Resilience, small cap, value, volatility | ARE | Diamond Hill Small Cap outperformed in Q4 with a 4.88% net return versus 2.19% for Russell 2000, driven by strong industrials and consumer discretionary selection. The strategy focuses on resilient businesses in neglected areas like industrial infrastructure, defense modernization, and critical materials. New real estate positions reflect expanding opportunity set amid continued market volatility. |
| Oct 24 2025 | 2025 Q3 | COOP, DCO, FIP, HURC, LEU, MLAB, OEC, RHP, RRR, TFIN, USLM | AI, defense, nuclear, Quality, small caps, value |
COOP LEU COOP LEU RRR USLM DCO FTAI |
Diamond Hill's small-cap strategy trailed the Russell 2000 in Q3 as the rally favored lower-quality names they avoid. Strong performance from Mr. Cooper Group and Centrus Energy offset weakness in FTAI Infrastructure and Mesa Laboratories. The firm remains disciplined in targeting resilient companies with strong fundamentals trading below intrinsic value, positioning for long-term outperformance despite near-term headwinds. |
| Jul 27 2025 | 2025 Q2 | BA, COOP, DCO, FIP, HURC, LEU, MLAB, OEC, RHP, RRR, TBK, USLM | AI, defense, materials, nuclear, small caps, technology, value |
LEU DCO NSP UTZ AZZ FBIN STRW ASUR AEO COOP LEU RRR USLM DCO FIP MLAB HURC |
Diamond Hill's small cap strategy trailed the Russell 2000 in Q3 as the rally favored lower-quality names the firm avoids. Strong performance from Mr. Cooper Group and Centrus Energy offset weakness in FTAI Infrastructure. The team added Hurco Companies while maintaining focus on fundamentally strong businesses trading below intrinsic value despite market volatility. |
| Apr 24 2025 | 2025 Q1 | ALGT, AVNS, CALM, CIVI, COOP, ESGR, FADV, FTAI, HLIO, IGIC, LOB, NSP, SEB, TBK, TKO.TO, TTAN, UGI, WBS | Mortgage, small caps, tariffs, Trade Policy, Utilities, value, volatility | - | Diamond Hill's small-cap strategy declined 11.52% in Q1 amid trade policy uncertainty and tariff threats. The manager actively repositioned the portfolio, adding quality names like Helios Technologies and Avanos Medical while trimming less compelling positions. Despite near-term volatility from potential US-China trade war, the team sees attractive opportunities emerging in high-quality small-caps with strong balance sheets. |
| Dec 31 2024 | 2024 Q4 | ALGT, ASH, ASTH, CALM, CMPR, CURB, FIP, GHM, GTES, HAYN, LEU, LOB, MLAB, RCKY, RRR, SANM, USLM, WNS | defense, industrials, infrastructure, nuclear, small caps, value |
USLM FTAI MLAB CMPR CURB |
Diamond Hill's small-cap value strategy outperformed benchmarks in Q4 and 2024, driven by strong industrials performance and nuclear-related investments. The manager added four new positions while maintaining disciplined value approach despite elevated market valuations. Focus remains on identifying resilient companies trading below intrinsic value with three- to five-year return potential through active portfolio management. |
| Sep 30 2024 | 2024 Q3 | ALIT, ASH, ASTH, CIVI, DEI, ENOV, FA, FTAI, IGIC, JLL, LOB, NSP, PAL, PESI, RMNI, USLM | financials, healthcare, industrials, rates, small caps, value | - | Diamond Hill's small-cap value strategy underperformed in Q3 despite strong absolute returns, as rate cuts benefited financials while energy holdings struggled. The manager added four new positions including Insperity and specialty insurance names, maintaining their disciplined approach despite elevated market valuations and emerging consumer headwinds that could challenge 2025 earnings expectations. |
| Jul 26 2024 | 2024 Q2 | ALGT, ALNC, ASTH, ENOV, FTAI, KEX, LOB, MAMA, MGY, RCKY, RRR, THR, TKO.TO, USLM | Copper, financials, materials, small caps, underperformance, value | - | Diamond Hill's small-cap strategy slightly underperformed in Q2 amid continued small-cap weakness and market concentration in mega-cap tech. The manager sees compelling opportunities in overlooked, resilient small companies trading at attractive valuations. They initiated three new positions while maintaining conviction in their intrinsic value approach, expecting outperformance over the intermediate to long term. |
| Apr 15 2024 | 2024 Q1 | DOUG, FTAI, ISRG, LANC, LEU, LOB, OEC, OZK, RRR, SMCI, TKO.TO, UFPT, WNS | materials, rates, Regional Banks, small caps, technology, value | - | Diamond Hill's small cap strategy outperformed in Q1 through selective stock picking, with casino operator Red Rock Resorts and food manufacturer Lancaster Colony leading gains while regional banks declined on shifting rate expectations. The manager initiated one new position despite challenging valuations and expects continued selectivity as they seek quality companies trading below intrinsic value. |
| Jan 2 2024 | 2023 Q4 | ALNT, BBCP, CIVI, CMT, ERII, LOB, MAMA, OZK, RCKY, RHP, RRR, RYN, WNS, WWW | consumer discretionary, energy, financials, industrials, small caps, value | - | Diamond Hill Small Cap Fund outperformed benchmarks with 23.22% annual returns through bottom-up value investing. Strong performance from casino operator Red Rock Resorts and regional banks benefiting from rate cut expectations drove results. Despite elevated market valuations, managers continue finding attractive opportunities and expect better-than-market returns through active management. |
| Sep 30 2023 | 2023 Q3 | ALGT, CALM, CIVI, DCO, ENOV, FTAI, HAYN, LANC, LEU, LOB, MLR, PRGS, RMNI, RRR | defense, energy, financials, nuclear, small caps, technology, value |
CIVI CALM ADCO LAS/A CN|MLR|MNRO|NGS|WHGLY|WLY |
Diamond Hill's small cap fund lagged in Q3 on consumer discretionary weakness but maintains YTD outperformance. Energy holdings like Civitas Resources drove gains amid rising oil prices. New positions in defense supplier Ducommun and software firm Progress Software reflect opportunistic deployment. Despite Fed hawkishness and elevated valuations, the manager sees selective opportunities through disciplined fundamental analysis in an increasingly narrow market. |
| Jul 25 2023 | 2023 Q2 | ALGT, ASH, BKU, CALM, COOP, FIBK, GRBK, HBI, OZK, PRG, TKO.TO, UFPT, WNS | Banking, financials, healthcare, Homebuilders, small caps, technology, value |
GRBK UFPT |
Diamond Hill's small cap fund outperformed in Q2 through strong financials and selective positioning. Key contributors included homebuilder Green Brick Partners and medical technology firm UFP Technologies. The manager trimmed lower conviction names while maintaining focus on value-oriented stocks positioned for higher rate environment. Despite narrow market leadership, opportunities exist in reasonably valued median stocks. |
| Mar 31 2023 | 2023 Q1 | BOKF, BRBR, CIVI, CRI, ESAB, FIBK, GRBK, ITGR, LOB, LYV, MYFW, OZK, RRR, SAMG, TRS, WBS, WCC | energy, financials, industrials, Regional Banks, small caps, value |
WCC ESAB SAMG |
Diamond Hill Small Cap Fund outperformed in Q1 despite regional banking stress, with industrials and energy holdings driving returns while financials detracted. The fund maintains conviction in its regional bank holdings despite sector volatility, believing the market overreacted to SVB failures. Management expects historical average returns over five years through disciplined value investing. |
| Jan 27 2023 | 2022 Q4 | ALGT, BBCP, ESAB, ESGRP, FTAI, GHM, GTES, ODC, RMNI, RRR, TGB, UFPT, WNS, WWW | - | - |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2026 Q2 |
HealthcareThe manager has steadily increased health care exposure by nearly 800 basis points over the past 12 months, driven by increasing conviction in businesses supported by durable, long-term demand that the market is underappreciating. Several of the largest contributors during the quarter came from health care holdings, including Astrana Health and BioLife Solutions. The manager views health care as an area of compelling opportunity despite persistent negative sentiment. |
Value-based care Medicare Advantage Cell therapy Gene therapy Biopreservation |
DefenseDefense-oriented businesses drove strong performance in the portfolio during the quarter. Ducommun, an aerospace and defense manufacturer, outperformed as both primary end markets strengthened simultaneously for the first time in years, with missile revenue increasing nearly a quarter supported by funded Department of Defense contracts calling for substantial production increases. The manager continues to find attractive opportunities in businesses tied to defense modernization. |
Aerospace Missiles DoD contracts Defense modernization | |
InfrastructureThe manager continues to find attractive opportunities in businesses tied to infrastructure investment and other essential industries where demand remains supported by long-term structural trends. Insteel Industries was initiated as a new position, positioned to benefit from durable infrastructure and data center spending. The manager emphasizes these businesses offer durable demand, strong competitive positions, and disciplined capital allocation. |
Concrete reinforcing Data centers Construction materials Structural demand | |
AITechnology was by far the strongest-performing sector at 56%, driven by continued strength in semiconductors, memory and other businesses directly benefiting from Artificial Intelligence-related capital spending. However, the manager notes that while headlines may be heavily dominated by AI-related narratives, the portfolio's outperformance was driven by business selection well outside the AI theme. The manager's underweight to information technology was the largest relative headwind during the quarter. |
Semiconductors Memory Capital spending | |
OilDeclining oil prices weighed on energy, making it the only sector to post negative returns during the quarter at -10%. Magnolia Oil & Gas saw shares decline after an agreement was reached to end the war between the US and Iran and reopen the Strait of Hormuz, with the war-related risk premium that had supported US exploration and production companies earlier in the year largely dissipating. Energy-related holdings gave back some of their strong first-quarter gains as oil prices retreated alongside easing geopolitical concerns. |
Exploration & Production Geopolitical risk Oil prices | |
| 2026 Q1 |
OilOil prices rose sharply due to supply concerns following the closure of the Strait of Hormuz amid geopolitical tensions in Iran. Energy was the best-performing sector, advancing 38% in Q1, with US oil producers benefiting from higher commodity prices and potential for outsized cash generation. |
Oil Energy Geopolitical Supply Prices |
Defense SpendingAccelerated demand in defense as geopolitical conflict creates need to rebuild damaged infrastructure and replenish depleted defense stockpiles. Pentagon spending acceleration is directly benefiting companies with missile franchises and defense exposure. |
Defense Military Pentagon Missiles Stockpiles | |
AIOngoing concerns around artificial intelligence-related disruption, particularly within software, weighed on information technology sector performance. The fund exited positions in Progress Software and First Advantage due to increased uncertainty from AI disruption. |
AI Software Disruption Technology Uncertainty | |
Infrastructure SpendingMeaningful exposure in businesses tied to national security and infrastructure rebuild, both seeing accelerated demand as geopolitical conflict creates need to rebuild damaged infrastructure. |
Infrastructure Rebuild National Security Geopolitical Demand | |
| 2025 Q4 |
Defense SpendingManager maintains exposure to global armaments companies, noting the entire world is rapidly rearming off an extremely low base of defense spending. The position materially outperformed for the year despite Q4 underperformance, with top contributors including Rheinmetall, Palantir Technologies, and RTX. |
Defense Armaments Military Geopolitical Security |
GoldManager holds both physical gold bullion and a leveraged gold exposure called 'Gresham's Wrath' that combines 1.5x gold exposure with option income generation. Gold is viewed as superior commodity money due to its scarcity and durability, with central bank demand accelerating and fiat currencies losing value since 1971. |
Gold Precious Metals Monetary Inflation Currency | |
Precious Metal Royalty/Streaming CompaniesManager maintains exposure to companies that provide upfront capital to mining companies in exchange for royalties or streams, avoiding operational mining risks while benefiting from price appreciation and production growth. These exposures materially outperformed for the year. |
Royalties Streaming Mining Commodities Cash Flow | |
Capital MarketsManager holds positions in exchanges like Nasdaq and Chicago Board of Options Exchange, viewing them as essential high-margin toll roads for the economy with immense operating leverage and natural inflation hedging through transaction-based revenue. |
Exchanges Trading Technology Data Infrastructure | |
Managed FuturesManager uses systematic long/short strategies across commodities and interest rates to generate absolute returns with low correlation to equities and bonds. The strategy was updated to include European exposures and is designed to protect capital during disruption and volatility. |
Commodities Systematic Hedging Volatility Diversification | |
BitcoinDespite long-term bullish views, manager completely exited Bitcoin position in mid-November using risk management framework similar to commodity trading funds. The exit was well-timed as Bitcoin continued falling while US Large Cap equities they rotated into increased in value. |
Cryptocurrency Digital Assets Risk Management Volatility | |
| 2025 Q3 |
AIThe artificial intelligence boom had widespread effects across sectors in Q3, with materials up 25% and technology up over 16%. Technology companies continued their torrid run as sentiment around AI's potential to radically change life remains high. Nuclear fuel provider Centrus Energy is benefiting from renewed interest in nuclear power to support growing power demand tied to the AI boom. |
Nuclear Power Technology Materials |
DefenseDucommun is benefiting from strong demand in its missile programs amid heightened geopolitical tensions globally. The company is a critical Tier 1 and Tier 2 supplier of advanced material aerostructures and electrical components to the defense and commercial markets. Hurco Companies has strategic positioning with over 50% revenue exposure to Europe, positioning it well to benefit from European defense and industrial investment. |
Geopolitical Missiles Aerospace Europe | |
NuclearNuclear fuel and services provider Centrus Energy is benefiting from renewed interest in nuclear power in the US to support growing power demand tied to the AI boom. Centrus is a nuclear fuel broker with burgeoning enrichment capabilities, positioning it well as the US seeks to maintain domestic energy independence. |
Energy Independence Fuel Enrichment Power | |
Small CapsUS small-cap stocks gained over 12% in Q3 as measured by the Russell 2000 Index, taking year-to-date gains to just over 10%. The small-cap index had the best quarter by a meaningful margin compared to large and mid-cap indices. The manager focuses on identifying small companies with resilience, strong fundamentals and long-term growth potential. |
Russell 2000 Outperformance Fundamentals Growth | |
| 2025 Q2 |
AIAI-fueled boom had widespread effects across sectors, with technology companies continuing their torrid run as sentiment around AI's potential to radically change life remains high. Nuclear fuel provider Centrus Energy is benefiting from renewed interest in nuclear power to support growing power demand tied to the AI boom. |
Nuclear Technology Power Demand Sentiment |
DefenseDucommun is benefiting from strong demand in its missile programs amid heightened geopolitical tensions globally. Hurco Companies has strategic positioning with over 50% revenue exposure to Europe, positioning it well to benefit from European defense and industrial investment. |
Missiles Geopolitical Europe Industrial Investment | |
NuclearCentrus Energy is benefiting from renewed interest in nuclear power in the US to support growing power demand tied to the AI boom. The company is a nuclear fuel broker with burgeoning enrichment capabilities, positioning it well as the US seeks to maintain domestic energy independence. |
Fuel Enrichment Independence Domestic Power | |
| 2025 Q1 |
Trade PolicyPresident Trump announced significant tariffs including a 104% tariff on China in response to retaliation, creating widespread uncertainty about global trade relationships. Markets are struggling to digest whether tariffs are negotiation tactics or permanent policy changes that will reshape world trade order. |
Tariffs China Retaliation Negotiation |
Small CapsSmall-cap Russell 2000 Index declined 9.5% in Q1, showing more sensitivity during heightened macroeconomic uncertainty compared to broader markets. Value stocks performed better than growth across the cap spectrum during this period. |
Russell 2000 Volatility Value Growth | |
MortgageMr. Cooper Group executed well during a challenging mortgage environment as interest rates remained high relative to historical levels. The company's mortgage-servicing rights business model is designed to protect against rising rate periods. |
Servicing Rights Interest Rates Mortgage Industry | |
| 2024 Q4 |
NuclearGrowing momentum around building additional nuclear power sources in the United States as immense power needs from AI-related datacenter demand require constant baseload power, which nuclear provides carbon-free. Centrus Energy benefited from this trend. |
Nuclear Baseload Power AI Data Centers Carbon-free |
DefenseGraham Corp is executing well amid ongoing demand from the US Navy. With a solid backlog and stable incoming defense orders, the outlook remains constructive for defense-related companies. |
Defense Navy Backlog Defense Orders | |
InfrastructureFTAI Infrastructure owns scarce, critical infrastructure assets including short-line freight railroads, energy terminals, and ports. These assets are well-positioned to benefit from long-term trends around the energy transition, increased global trade and demand for efficient logistics infrastructure. |
Infrastructure Railroads Energy Terminals Logistics Energy Transition | |
ValueThe manager remains committed to seeking resilient companies that are undervalued relative to estimates of intrinsic value. They note it has become increasingly challenging to find high-quality, small-cap companies trading at attractive discounts to their intrinsic values as valuations have continued rising. |
Value Intrinsic Value Undervalued Discounts | |
| 2024 Q3 |
Small CapsThe fund focuses exclusively on small-cap investments, typically companies with market capitalization below $3 billion or within the Russell 2000 Index range. Small-cap stocks outperformed in Q3, with the Russell 2000 Index gaining 9% and value stocks outperforming growth. The manager continues finding compelling new ideas in the small-cap space despite the ongoing bull market. |
Russell 2000 Market Cap Value Growth Outperformance |
ValueValue stocks significantly outperformed growth across the cap spectrum in Q3. The Russell 2000 Value Index gained over 10%, outperforming the Russell 2000 Growth Index by 174 basis points. The manager emphasizes bottom-up research to identify companies selling below intrinsic value estimates, maintaining a disciplined value-oriented approach. |
Russell 2000 Value Intrinsic Value Outperformance Disciplined | |
RatesThe Federal Reserve cut rates 50 basis points in September, marking the beginning of a new rate-cut cycle. This shift benefited financials holdings, particularly regional banks like Live Oak Bancshares. The manager notes that while valuations are supported by falling rates since their October 2023 peak, elevated valuations may still challenge future returns. |
Fed Rate Cuts Financials Valuations | |
| 2024 Q2 |
Small CapsSmall caps continue to underperform large caps significantly, with year-to-date underperformance of more than 12 percentage points and 10-year underperformance of about 5.5 percentage points annualized. Small caps are trading near historically low valuation premium relative to large caps, creating compelling investment opportunities for resilient, undervalued small companies. |
Underperformance Valuation Opportunity Russell 2000 Premium |
ValueGrowth indices continued significant outperformance over value indices in Q2, with Russell 1000 Growth up 8% versus Russell 1000 Value down 2%. Over the past 10 years, growth's outperformance relative to value has been astounding at over 8 percentage points annually, though value has still delivered solid returns of more than 8% annually. |
Growth Outperformance Russell 1000 Returns Disparity | |
CopperMining company Taseko Mines is benefiting from its exposure to copper, which is in demand as electrification requires significant access to copper supplies. The company was also able to resolve a labor dispute at its newly acquired Gibraltar mine during the quarter. |
Electrification Mining Demand Supply Gibraltar | |
| 2024 Q1 |
Small CapsSmall cap stocks underperformed large caps in Q1, with the Russell 2000 up 5% versus Russell 1000's 10%. More than one-quarter of the Russell 2000's return came from a single stock, Super Micro Computer. The manager continues to find compelling opportunities in small caps despite challenging valuations. |
Russell 2000 Underperformance Concentration Valuations Opportunities |
Regional BanksRegional banks Live Oak Bancshares and Bank OZK declined as investors adjusted expectations for fewer Fed rate cuts in 2024. These banks had previously gained in late 2023 on expectations of rate cuts that would relieve deposit pricing pressure and commercial real estate stress. |
Rate Cuts Deposit Pricing Commercial Real Estate Fed Policy | |
RatesInterest rate expectations dominated market headlines in Q1, though their influence may be diminishing. The 10-year Treasury rose 32 basis points and markets now expect far fewer rate cuts in 2024. Japan ended its ultra-loose monetary policy, raising rates from -0.1% to +0.1%. |
Fed Policy Treasury Yields Rate Cuts Japan Monetary Policy | |
| 2023 Q4 |
CasinosRed Rock Resorts successfully opened its Durango Casino and Resort in December and is already discussing the second phase development. The company controls over half the Las Vegas local market and is positioned to capitalize on Las Vegas economic growth as major sports franchises locate there. |
Gaming Las Vegas Sports |
Regional BanksRegional banks Live Oak and Bank OZK rallied strongly following the Fed's November meeting, which investors interpreted as signaling an end to rate hikes and potential pivot to cuts in 2024. The early 2023 mini-banking crisis has faded from view. |
Interest Rates Fed Policy Banking | |
HotelsRyman Hospitality Properties is benefiting from its recent acquisition of JW Marriott Hill Country in San Antonio. Fundamentals are strong with positive forward booking trends, giving a boost to shares in Q4. |
Hospitality REITs Travel | |
OilCivitas Resources, an oil and natural gas explorer focused on the DJ Basin, announced another Permian Basin acquisition in Q4 to diversify holdings. Despite solid results from low-cost drilling inventory, shares declined with the broader industry as oil prices fell. |
Energy Exploration Permian | |
| 2023 Q3 |
EnergyEnergy was the best performing sector in Q3 on the back of rising oil prices, notching a positive quarter at 19%. Oil prices rose against a backdrop of OPEC+ production cuts, benefiting holdings like Civitas Resources which saw earnings recover and share price rebound accordingly. |
Oil Natural Gas Energy Trading Exploration & Production Shale Producers |
DefenseDucommun is positioned as a critical Tier 1 and Tier 2 supplier of advanced material aerostructures and electrical components to defense and commercial markets. Management's focus on the defense side of the business is bearing fruit, with the electronic systems business engineering components for military aircraft, missile systems, ships and radars. |
Defense Aerospace Components Defense Components Defense Electronics Defense Services | |
NuclearCentrus Energy, a nuclear fuel and services provider, rose during Q3 following World Nuclear Association meetings as investors begin recognizing the extent of the uranium market's supply and demand mismatch. This reality should improve pricing power for providers like Centrus. |
Nuclear Uranium Uranium Fuel Cycle Energy Transition Power Equipment | |
| 2023 Q2 |
Regional BanksThe fund weathered the banking crisis well and sees opportunities to deploy capital opportunistically. Bank OZK performed strongly due to its conservative approach and positioning during the crisis. First Interstate BancSystem struggled with the challenging banking environment. |
Banking Credit Deposits Lending Capital |
HomebuildersGreen Brick Partners performed exceptionally well due to its low land basis and strong fundamentals in the Dallas-Fort Worth market. The company has a solid balance sheet to navigate cyclicality and management aligned with shareholders. |
Housing Construction Real Estate Cyclical Land | |
Medical TechnologyUFP Technologies' MedTech business drives 85% of revenues with expanding margins as capacity is added in lower-cost regions. The company targets 10-15% annual revenue growth through organic growth and acquisitions. |
Healthcare Manufacturing Margins Growth Capacity | |
| 2023 Q1 |
Regional BanksBanking sector faced significant stress in Q1 with SVB and Signature Bank failures spreading liquidity fears across regional banks. The fund maintains exposure to several regional banks despite sector weakness, believing the market overreacted and that their holdings are differentiated from failed institutions. |
Banking Credit Deposits Liquidity Stress |
ValueThe fund employs a fundamental, bottom-up approach to identify high-quality companies trading at attractive valuations. They maintain a five-year outlook to allow their value-oriented strategy to deliver attractive long-term returns despite near-term market volatility. |
Valuation Fundamentals Quality Long-term Attractive |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Jul 28, 2026 | Fund Letters | Diamond Hill Small Cap Fund | ASTH | Astrana Health | Medical Care Facilities | Health Care Services | Bull | NASDAQ | acquisition integration, Health Care Services, Medicare Advantage, Physician networks, value-based care | Login |
| Jul 28, 2026 | Fund Letters | Diamond Hill Small Cap Fund | DCO | Ducommun | Aerospace & Defense | Aerospace & Defense | Bull | New York Stock Exchange | Aerospace, Commercial Aerospace, Defense, DoD contracts, manufacturing, Missiles | Login |
| Jul 28, 2026 | Fund Letters | Diamond Hill Small Cap Fund | RHP | Ryman Hospitality Properties | REIT - Hotel & Motel | Specialized REITs | Bull | New York Stock Exchange | Asset Sale, entertainment, Group lodging, hospitality, REIT, Value Realization | Login |
| Jul 28, 2026 | Fund Letters | Diamond Hill Small Cap Fund | IIIN | Insteel Industries | Metal Fabrication | Steel | Bull | NASDAQ | construction materials, data centers, debt-free, infrastructure, manufacturing, Steel | Login |
| Jul 28, 2026 | Fund Letters | Diamond Hill Small Cap Fund | BLFS | BioLife Solutions | Medical Instruments & Supplies | Life Sciences Tools & Services | Bull | NASDAQ | Biopreservation, cell therapy, FDA-approved, gene therapy, high switching costs, Life Sciences Tools | Login |
| Jul 28, 2026 | Fund Letters | Diamond Hill Small Cap Fund | INFU | InfuSystem | Medical Devices | Health Care Equipment | Bull | - | Healthcare services, Infusion pumps, margin expansion, Medical devices, Oncology, Payer network | Login |
| Jul 28, 2026 | Fund Letters | Diamond Hill Small Cap Fund | RAIL | FreightCar America | Railroads | Construction Machinery & Heavy Trucks | Bull | NASDAQ | Cyclical Recovery, manufacturing, margin expansion, Railcars, Transportation equipment, vertically integrated | Login |
| Jul 28, 2026 | Fund Letters | Diamond Hill Small Cap Fund | DAKT | Daktronics | Electronic Components | Electronic Equipment & Instruments | Bull | NASDAQ | debt-free, Digital Signage, Electronic Equipment, LED Displays, Proprietary software, turnaround | Login |
| Apr 28, 2026 | Fund Letters | Diamond Hill Small Cap Fund | - | Magnolia Oil & Gas | Engineering & Construction | Oil & Gas Exploration & Production | Bull | New York Stock Exchange | capital returns, cash generation, commodity prices, energy, Exploration, geopolitical, Oil & Gas, Production, US Producer | Login |
| Apr 28, 2026 | Fund Letters | Diamond Hill Small Cap Fund | DCO | Ducommun | Aerospace & Defense | Aerospace & Defense | Bull | New York Stock Exchange | Aerospace, Defense, Defense Contractor, engineered products, manufacturing, margin expansion, Missiles, Pentagon Spending, Pricing power | Login |
| Apr 28, 2026 | Fund Letters | Diamond Hill Small Cap Fund | ODC | Oil-Dri | Specialty Chemicals | Specialty Chemicals | Bull | New York Stock Exchange | Cat Litter, Competitive Moats, Higher Margin Products, Onshoring, operational excellence, Pet Products, premiumization, Sorbent Materials, Tariff Protection | Login |
| Apr 28, 2026 | Fund Letters | Diamond Hill Small Cap Fund | RRR | Red Rock Resorts | Resorts & Casinos | Casinos & Gaming | Bull | NASDAQ | Casinos, consumer resilience, discretionary spending, diversified customer base, entertainment, Gaming, Las Vegas, Regional Gaming | Login |
| Apr 28, 2026 | Fund Letters | Diamond Hill Small Cap Fund | PAL | Proficient Auto Logistics | Integrated Freight & Logistics | Trucking | Bull | NASDAQ | Auto Manufacturers, Auto Transport, Cost advantage, Geographic Coverage, industry consolidation, Logistics, Non-Union Carriers, Transportation | Login |
| Apr 28, 2026 | Fund Letters | Diamond Hill Small Cap Fund | UTZ | Utz Brands | Packaged Foods | Packaged Foods & Meats | Neutral | New York Stock Exchange | Competition, consumer sentiment, Freight Costs, GLP-1 Impact, operational progress, Packaged Foods, Snack Foods, SNAP Benefits | Login |
| Apr 28, 2026 | Fund Letters | Diamond Hill Small Cap Fund | LYTS | LSI Industries | Electronic Components | Electrical Components & Equipment | Bull | NASDAQ | cash generation, Commercial, Display Solutions, Industrial, Lighting, Management transformation, organic growth, Product Differentiation, Service revenue | Login |
| Apr 28, 2026 | Fund Letters | Diamond Hill Small Cap Fund | KN | Knowles Corp | Electronic Components | Electronic Components | Bull | New York Stock Exchange | Defense, Electronic Components, Higher-Margin, Industrial, Medical, Mission-Critical, portfolio transformation, Specialty Components, valuation disconnect | Login |
| Jan 27, 2026 | Fund Letters | Chris Welch | ARE | Alexandria Real Estate Equities, Inc. | Real Estate | Office REITs | Bull | New York Stock Exchange | development, lifesciences, recovery, REITs, valuation | Login |
| Oct 24, 2025 | Fund Letters | Chris Welch | COOP | Mr. Cooper Group Inc. | Health Care | Mortgage Finance | Bull | NASDAQ | acquisition, Housing, Interest rates, Mortgage, Refinancing, ROE | Login |
| Oct 24, 2025 | Fund Letters | Chris Welch | LEU | Centrus Energy Corp. | Materials | Uranium & Nuclear Fuel | Bull | NYSE | AI, electricity demand, Energy independence, Enrichment, HALEU, Nuclear, uranium | Login |
| Oct 24, 2025 | Fund Letters | Chris Welch | COOP | Mr. Cooper Group Inc. | Health Care | Mortgage Finance | Bull | NASDAQ | acquisition, Housing, Interest rates, Mortgage, Refinancing, ROE | Login |
| Oct 24, 2025 | Fund Letters | Chris Welch | LEU | Centrus Energy Corp. | Materials | Uranium & Nuclear Fuel | Bull | NYSE | AI, electricity demand, Energy independence, Enrichment, HALEU, Nuclear, uranium | Login |
| Oct 24, 2025 | Fund Letters | Chris Welch | RRR | Red Rock Resorts Inc. | Consumer Discretionary | Casinos & Gaming | Bull | NASDAQ | Casinos, Demographics, EBITDA, Free Cash Flow, Las Vegas, Margins | Login |
| Oct 24, 2025 | Fund Letters | Chris Welch | USLM | United States Lime & Minerals Inc. | Materials | Construction Materials | Bull | NASDAQ | construction, Demand, Industrial materials, infrastructure, Pricing, Revenue Growth | Login |
| Oct 24, 2025 | Fund Letters | Chris Welch | DCO | Ducommun Inc. | Industrials | Aerospace & Defense | Bull | NYSE | Aerospace, backlog, Boeing, Defense, leverage, Missiles, Production | Login |
| Oct 24, 2025 | Fund Letters | Chris Welch | FTAI | FTAI Infrastructure Inc. | Industrials | Transportation Infrastructure | Bull | NASDAQ | acquisition, assets, Freight, infrastructure, Rail, Transportation | Login |
| Sep 30, 2025 | Fund Letters | Diamond Hill Small Cap Fund | COOP | Mr. Cooper Group | Financials | Thrifts & Mortgage Finance | Bull | NASDAQ | acquisition, Fed Policy, financials, Housing, Interest Rate Sensitive, Mortgage servicing, Refinancing | Login |
| Sep 30, 2025 | Fund Letters | Diamond Hill Small Cap Fund | LEU | Centrus Energy | Energy | Oil & Gas Equipment & Services | Bull | NYSE American | AI power demand, Domestic Supply, energy, Energy independence, Nuclear Fuel, Nuclear Power, Uranium Enrichment | Login |
| Sep 30, 2025 | Fund Letters | Diamond Hill Small Cap Fund | RRR | Red Rock Resorts | Consumer Discretionary | Casinos & Gaming | Bull | NASDAQ | Casino Operator, Consumer Discretionary, Gaming, Las Vegas, Locals Market, market dominance, Regional Gaming | Login |
| Sep 30, 2025 | Fund Letters | Diamond Hill Small Cap Fund | USLM | US Lime & Minerals | Materials | Construction Materials | Bull | NASDAQ | construction materials, infrastructure, Lime, Limestone, Louisiana, materials, steel industry, Texas | Login |
| Sep 30, 2025 | Fund Letters | Diamond Hill Small Cap Fund | DCO | Ducommun | Industrials | Aerospace & Defense | Bull | NYSE | 737 Max, Aerospace, Aerostructures, Boeing Supplier, Defense, geopolitical tensions, Missile Programs | Login |
| Sep 30, 2025 | Fund Letters | Diamond Hill Small Cap Fund | FIP | FTAI Infrastructure | Industrials | Marine Ports & Services | Bull | NASDAQ | asset monetization, Freight Rail, infrastructure, railroad, Regional Rail, Strategic Transformation, Transportation | Login |
| Sep 30, 2025 | Fund Letters | Diamond Hill Small Cap Fund | MLAB | Mesa Laboratories | Health Care | Life Sciences Tools & Services | Neutral | NASDAQ | China exposure, currency impact, Disinfection, Healthcare Tools, life sciences, Quality Control, Sterilization | Login |
| Sep 30, 2025 | Fund Letters | Diamond Hill Small Cap Fund | HURC | Hurco Companies | Industrials | Industrial Machinery & Supplies & Components | Bull | NASDAQ | Aerospace, CNC Machine Tools, Defense Investment, European Exposure, Industrial technology, Manufacturing Equipment, Metal Cutting | Login |
| Jul 27, 2025 | Fund Letters | Chris Welch | LEU | Centrus Energy Corp. | Materials | Coal & Consumable Fuels | Bull | NYSE | energy, Enrichment, Nuclear, Policy, Security | Login |
| Jul 27, 2025 | Fund Letters | Chris Welch | DCO | Ducommun Incorporated | Industrials | Aerospace & Defense | Bull | NYSE | Aerospace, backlog, Defense, leverage, Margins | Login |
| Jul 27, 2025 | Fund Letters | Chris Welch | NSP | Insperity, Inc. | Industrials | Human Resource & Employment Services | Bear | NYSE | Benefits, Competition, disruption, Margins, Peo | Login |
| Jul 27, 2025 | Fund Letters | Chris Welch | UTZ | UTZ Brands, Inc. | Consumer Staples | Packaged Foods & Meats | Bull | NYSE | brands, deleveraging, growth, Margins, Snacks | Login |
| Jul 27, 2025 | Fund Letters | Chris Welch | AZZ | AZZ Inc. | Industrials | Electrical Components & Equipment | Bull | NYSE | Coatings, infrastructure, Reshoring, services, valuation | Login |
| Jul 27, 2025 | Fund Letters | Chris Welch | FBIN | Fortune Brands Innovations, Inc. | Industrials | Building Products | Bull | NYSE | brands, Housing, innovation, Pricing, Remodeling | Login |
| Jul 27, 2025 | Fund Letters | Chris Welch | STRW | Strawberry Fields REIT, Inc. | Real Estate | Health Care REITs | Bull | NYSE | Demographics, dividends, healthcare, Leases, REIT | Login |
| Jul 27, 2025 | Fund Letters | Chris Welch | ASUR | Asure Software, Inc. | Information Technology | Application Software | Bull | NASDAQ | Compliance, HCM, profitability, SaaS, Scalability | Login |
| Jul 27, 2025 | Fund Letters | Chris Welch | AEO | American Eagle Outfitters, Inc. | Consumer Discretionary | Apparel Retail | Bull | NYSE | Apparel, brands, consumer, Margins, retail | Login |
| Dec 31, 2024 | Fund Letters | Diamond Hill Small Cap Fund | USLM | United States Lime & Minerals | Materials | Construction Materials | Bull | NASDAQ | construction materials, I-35 Corridor, Lime, Limestone, margin expansion, materials, Pricing power, Texas | Login |
| Dec 31, 2024 | Fund Letters | Diamond Hill Small Cap Fund | FTAI | FTAI Infrastructure | Industrials | Transportation Infrastructure | Bull | NASDAQ | Energy Terminals, energy transition, Hydrogen, infrastructure, Logistics, natural gas, Ports, railroads | Login |
| Dec 31, 2024 | Fund Letters | Diamond Hill Small Cap Fund | MLAB | Mesa Laboratories | Health Care | Life Sciences Tools & Services | Bull | NASDAQ | Acquisitions, biopharmaceutical, Danaher, diagnostics, growth, healthcare, Lab Equipment, life sciences | Login |
| Dec 31, 2024 | Fund Letters | Diamond Hill Small Cap Fund | CMPR | Cimpress | Communication Services | Interactive Media & Services | Bull | NASDAQ | balance sheet, Customized Marketing, Free Cash Flow, Marketing Materials, Printing, small business, undervalued | Login |
| Dec 31, 2024 | Fund Letters | Diamond Hill Small Cap Fund | CURB | Curbline Properties | Real Estate | Retail REITs | Bull | NYSE | cash, Commercial Property, Convenience retail, debt-free, Real Estate, REIT, retail centers, spinoff | Login |
| Sep 30, 2023 | Fund Letters | Diamond Hill Small Cap Fund | CIVI | Civitas Resources | Energy | Oil, Gas & Consumable Fuels | Bull | NYSE | acquisition, DJ Basin, energy, Equity, oil and gas, OPEC, Permian Basin | Login |
| Sep 30, 2023 | Fund Letters | Diamond Hill Small Cap Fund | CALM | Cal-Maine Foods | Consumer Staples | Food Products | Bull | NASDAQ | Cage-free, consumer staples, Equity, Food Products, Proposition 12, Regulatory, specialty eggs | Login |
| Sep 30, 2023 | Fund Letters | Diamond Hill Small Cap Fund | ADCO | Ducommun Incorporated | Industrials | Aerospace & Defense | Bull | NYSE | Aerospace & Defense, Defense Contractor, Electronic Systems, Equity, Industrials, M&A, Tier 1 Supplier | Login |
| Sep 30, 2023 | Fund Letters | Diamond Hill Small Cap Fund | LAS/A CN|MLR|MNRO|NGS|WHGLY|WLY | Miller Industries | Industrials | Machinery | Bull | NYSE | distribution network, dividend, Equity, Industrials, machinery, market leader, Towing Equipment | Login |
| Jun 30, 2023 | Fund Letters | Diamond Hill Small Cap Fund | GRBK | Green Brick Partners | Consumer Discretionary | Homebuilding | Bull | NASDAQ | balance sheet strength, Cyclical, Dallas-Fort Worth, homebuilder, housing market, land development, Management Quality, Real Estate | Login |
| Jun 30, 2023 | Fund Letters | Diamond Hill Small Cap Fund | UFPT | UFP Technologies | Health Care | Health Care Equipment | Bull | NASDAQ | Acquisitions, Custom Manufacturing, Free Cash Flow, Geographic Diversification, Healthcare Equipment, margin expansion, medical technology, organic growth | Login |
| Mar 31, 2023 | Fund Letters | Diamond Hill Small Cap Fund | WCC | WESCO International | Industrials | Trading Companies & Distributors | Bull | NYSE | acquisition, Communications, cross-selling, Distributor, Electrical, Fragmented Market, Industrial, market leader, supply chain, synergies | Login |
| Mar 31, 2023 | Fund Letters | Diamond Hill Small Cap Fund | ESAB | ESAB Corporation | Industrials | Machinery | Bull | NYSE | Automation, Cutting Equipment, Emerging markets, Fabrication Technology, Gas Control, Industrial, margin expansion, organic growth, Welding | Login |
| Mar 31, 2023 | Fund Letters | Diamond Hill Small Cap Fund | - | First Western Financial | Financials | Regional Banks | Bull | NASDAQ | demographic trends, High Net Worth, market share, operating leverage, operational discipline, Private Trust Bank, wealth management, Western US | Login |
| Mar 31, 2023 | Fund Letters | Diamond Hill Small Cap Fund | SAMG | Silvercrest Asset Management | Financials | Asset Management & Custody Banks | Bull | NASDAQ | Acquisitions, Boutique Wealth Management, cash flows, Geographic Expansion, High-Touch Service, Low Capital Intensity, net cash, scalable platform, Ultra High Net Worth | Login |
| TICKER | COMMENTARY |
|---|---|
| ASTH | Astrana Health, a leader in value-based health care, outperformed as the company results have continued to demonstrate that it was not taking advantage of loopholes within Medicare coding, the balance sheet is back in good shape after the recent Prospect Health acquisition, which is performing well, and recent Medicare Advantage rates came in better than expected. |
| DCO | Shares of aerospace and defense manufacturer Ducommun rose as both of its primary end markets strengthened simultaneously for the first time in years. Missile revenue increased by nearly a quarter, supported by funded Department of Defense contracts calling for substantial production increases, while commercial aerospace returned to growth following a prolonged period of lower activity. |
| RHP | Ryman Hospitality Properties, a group-lodging focused REIT, saw shares rise in the quarter as the company continues to demonstrate the stability of its cash flow generation. Ryman also reported it had engaged an investment bank to explore the sale of Opry Entertainment Group after receiving multiple inbound inquiries. The plan has always been that Opry Entertainment would not be part of Ryman long term, but this may potentially speed up value realization of that asset. |
| MGY | Exploration and production company Magnolia Oil & Gas saw shares decline after an agreement was reached to end the war between the US and Iran and reopen the Strait of Hormuz. Although the situation in the Middle East remains fragile, the market increasingly viewed the risk of a meaningful supply disruption as diminished, and the war-related risk premium that had supported US exploration and production companies earlier in the year largely dissipated. |
| USLM | United States Lime & Minerals, a producer and supplier of limestone products, underperformed as several near-term headwinds—weather disruptions, labor shortages and higher fuel costs—pressured demand and margins. Despite these challenges, the company's scarce limestone reserves in Texas continue to support strong pricing power, and we maintain a constructive long-term view for the business. |
| SAMG | Silvercrest Asset Management, an independent asset manager serving high-net worth families and institutional investors, saw shares decline as continued client outflows and elevated compensation costs weighed on profitability and overshadowed the company's strong long-term investment performance and efforts to expand its institutional business. |
| IIIN | We initiated a position in Insteel Industries, the nation's largest manufacturer of steel wire reinforcing products for concrete construction. We believe the company is well positioned to benefit from durable infrastructure and data center spending, as well as the ongoing adoption of labor-saving reinforcing solutions. Recent acquisitions have strengthened Insteel's competitive position and geographic footprint, while its debt-free balance sheet provides flexibility to pursue additional growth opportunities and return capital to shareholders. |
| BLFS | Cell and gene therapy products and services supplier BioLife Solutions provides essential materials used to manufacture, store and transport living human cells. The company's biopreservation media are supported by FDA Master Files and embedded across approved therapies and clinical trials. We initiated a position as we believe the company enjoys a distinct advantage over other players in the space, as switching providers can be difficult due to validation requirements, regulatory filings and manufacturing processes. |
| INFU | InfuSystem provides medical device management services, primarily supporting ambulatory infusion pumps used in cancer treatment, handling equipment logistics, maintenance and insurance reimbursement. We initiated a position as we believe the company benefits from a difficult-to-replicate payer network, improving profitability driven by operational efficiencies and a favorable product mix, and a strong balance sheet that supports disciplined capital allocation. |
| RAIL | FreightCar America manufactures railcars for the North American freight market. We initiated a position in 2Q26 as we believe the company is well positioned to benefit from an aging railcar fleet that will require replacement as well as improving industry pricing. Additionally, the company's vertically integrated manufacturing operations provide a cost and delivery advantage, while recent margin improvement reflects operational progress. |
| DAKT | We initiated a position in Daktronics, a leading provider of LED video displays and digital signage, based on our view that the company has a strong competitive position supported by longstanding customer relationships and proprietary software. We believe new leadership, improved corporate governance and a focus on operational execution create an opportunity to improve profitability, while its debt-free balance sheet and cash generation provide financial flexibility. |
| AVNS | Avanos Medical, a medical technology company focused on GI tube feeding and non-opioid pain management solutions, was acquired by American Industrial Partners, an operationally focused private equity firm, in an all-cash transaction. |
| CMPR | Cimpress, a technology-enabled mass-customization company that makes personalized print and promotional products for small businesses, is a position we had been trimming as the discount to intrinsic value was narrowing and fully exited to initiate our new position in FreightCar America. |
| ERII | Pressure exchange manufacturer Energy Recovery was sold to allocate funds to more attractive opportunities. |
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