| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 8.64% | 3.35% | 0.84% |
Diamond Hill's Large Cap Fund returned 3.35% in Q2 2026, underperforming the Russell 1000 Value Index's 13.87% return, with nearly all underperformance attributable to the information technology sector. The Fund's lack of exposure to AI beneficiaries like Micron, which alone accounted for 25% of relative underperformance, was the primary detractor as the sector returned 81% driven by AI-related capital expenditures. Software holdings also detracted as AI uncertainty weighs on the industry, though the manager believes current valuations for Salesforce, Adobe, and Microsoft embed excessive pessimism. Bright spots included managed care holdings Humana and Elevance, which benefited from better-than-expected Medicare rate increases, and Nucor, which gained from data center-driven steel demand and supportive trade policy. Energy was the worst-performing sector at -14% following an Iran peace agreement. The manager believes above-average market valuations will lead to below-average returns over five years but remains confident in generating alpha through bottom-up stock selection, adding three new positions while eliminating five others to deploy capital to more attractive opportunities.
Diamond Hill employs a bottom-up value approach focused on identifying mispriced securities despite elevated market valuations, with confidence that active management can generate better-than-market returns over the next five years.
The manager believes above-average equity market valuations are likely to lead to below-average returns over the next five years. However, they continue to find attractive opportunities on a bottom-up basis and are confident they can achieve better-than-market returns over the next five years through active portfolio management. The tone is cautiously optimistic, acknowledging elevated market valuations while expressing confidence in their ability to generate alpha through stock selection.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Jul 15 2026 | 2026 Q2 | ACN, ADBE, COP, CRM, ELV, FDXF, GM, HUM, KMX, MSFT, MU, NUE, RRX, SBUX, SSNC, TXN, WIX, ZTS | AI, healthcare, large cap, Managed Care, semiconductors, software, technology, value | - | Diamond Hill's Large Cap Fund underperformed by 1,052 basis points in Q2 2026, driven almost entirely by avoiding AI beneficiaries like Micron while the technology sector surged 81%. The manager maintains conviction in enterprise software holdings despite AI disruption concerns and added managed care exposure on improving Medicare reimbursement. Despite elevated market valuations expected to produce below-average returns, the team remains confident in generating alpha through selective bottom-up opportunities. |
| Mar 31 2026 | 2026 Q1 | ABT, ADBE, CARR, COF, COP, FANG, IP, KMB, MSFT, TXN | AI, energy, Geopolitical, large cap, technology, value |
MSFT KMB CARR |
Diamond Hill's Large Cap Fund underperformed in Q1 due to limited AI exposure while benefiting from energy positioning amid Iran war. Technology holdings like Adobe and Microsoft faced AI disruption concerns but trade at attractive valuations. New positions in Microsoft, Kimberly-Clark, and Carrier Global capitalize on temporary weakness in quality businesses. |
| Jan 27 2026 | 2025 Q4 | AIG, AON, BRK-B, CAT, CB, CL, COF, COO, DOV, EQT, GM, GOOGL, HCA, HIG, LH, MU, NDAQ, SOLV, SYY, WIX, ZTS | AI, Defensive, financials, healthcare, large cap, Quality, technology, value |
GM AIG COF ZTS LH SYY COO DOV WIX SOLV EQT |
Diamond Hill Large Cap Fund underperformed in Q4 due to limited AI exposure, returning 1.41% versus 3.81% for the Russell 1000 Value Index. Managers remain cautious of AI exuberance, preferring high-quality, cash-generative defensive businesses like Colgate, Aon, and Berkshire Hathaway. New positions initiated in undervalued quality names while selling holdings that reached fair value. |
| Oct 24 2025 | 2025 Q3 | AIG, CAT, CL, EQH, FDX, GM, KMX, LHX, LULU, MLM, SYY, TGT, TMO, TXN, ZTS | AI, Data centers, defense, large cap, Quality, technology, value |
FDX ZTS |
Diamond Hill maintains contrarian value approach amid AI-driven market momentum, initiating positions in quality companies like FedEx and Thermo Fisher at attractive valuations while exiting lululemon and Target. Despite above-average market valuations creating challenging return environment, the manager believes active stock selection focusing on overlooked fundamentals can generate superior long-term returns. |
| Jul 27 2025 | 2025 Q2 | AIG, CAT, CL, EQH, FDX, GM, KMX, LHX, LULU, MLM, SYY, TGT, TMO, TXN, ZTS | AI, consumer, defense, infrastructure, large cap, technology, Trade Policy, value |
RRX FERG ADBE FDX TMO ZTS EQH |
Diamond Hill's Large Cap Fund trails benchmarks amid AI-driven market rally, maintaining contrarian focus on overlooked quality companies. Added four new positions including FedEx and Thermo Fisher while exiting lululemon and Target. Manager sees valuation concerns and potential AI bubble but believes active management can outperform through identifying undervalued businesses disconnected from narrow market themes. |
| Apr 24 2025 | 2025 Q1 | ABT, AIG, BRK-B, COF, D, GIS, GM, HCA, HD, LULU, MET, PH, RRX, TGT, WM | consumer, financials, healthcare, large cap, Trade Policy, value, volatility | - | Diamond Hill's Large Cap Fund underperformed in Q1 as Trump's aggressive tariff policies created market uncertainty, with the portfolio hurt by consumer discretionary names but helped by financials. The manager views current volatility as creating attractive entry points for high-quality companies and remains confident in their disciplined value approach to navigate the uncertain environment ahead. |
| Dec 31 2024 | 2024 Q4 | AMZN, BAC, BLDR, CL, EXR, FCX, GM, HCA, HUM, LEA, LULU, PEP, SBAC, SYK, WFC | Banking, consumer, healthcare, large cap, REITs, technology, value | - | Diamond Hill's Large Cap Fund lagged in Q4 despite strong performance from General Motors and new position lululemon. The value-focused managers remain cautious about elevated market valuations and policy uncertainty while selectively adding quality companies at attractive discounts. They maintain confidence in outperforming through disciplined stock selection over the medium term. |
| Sep 30 2024 | 2024 Q3 | ACN, AON, BLDR, CAT, COP, CVX, FANG, GOOGL, HCA, HON, HUM, NVR, PH, SBAC | energy, healthcare, industrials, large cap, rates, technology, value |
AON ACN BLDR |
Diamond Hill's Large Cap Fund outperformed in Q3 on technology strength and sector allocation. The managers added three new positions while trimming energy exposure. They acknowledge elevated valuations and consumer weakness risks but remain committed to their disciplined value approach, believing they can identify attractive opportunities despite challenging market conditions. |
| Jul 26 2024 | 2024 Q2 | AAPL, AMZN, BAC, COP, EXR, GOOGL, IP, KKR, KMX, LEA, META, MMC, MRO, MSFT, NVDA, RRX, SBUX, TGT, TXN | AI, Cloud, large cap, semiconductors, technology, value |
IP SBUX |
Diamond Hill's Large Cap Fund lagged in Q2 due to underweight tech exposure amid AI-driven rally. Strong performance from Amazon AWS and Texas Instruments offset weakness in industrials like Lear and Regal Rexnord. Fund added International Paper and Starbucks while trimming at target prices. Managers maintain disciplined value approach despite narrow market leadership from mega-cap tech. |
| Apr 15 2024 | 2024 Q1 | AIG, ALL, CAT, EXR, GM, HCA, HUM, KEY, LH, MSFT, SBAC, SYY, TFC | Electric Vehicles, financials, healthcare, large cap, rates, REITs, technology, value | - | Diamond Hill's Large Cap Fund outperformed in Q1 2024 with strong financials and consumer discretionary performance, led by AIG's turnaround progress and HCA Healthcare's hospital demand strength. REITs faced interest rate pressure while the manager added Sysco and KeyCorp. Despite challenging valuations limiting opportunities, the team maintains conviction in their fundamental research approach to generate above-average returns. |
| Jan 2 2024 | 2023 Q4 | AAPL, AIG, ALL, AMZN, BAC, BDX, BWA, CARR, CVX, GOOGL, HON, KKR, META, MSFT, NVDA, PFE, TGT, TSLA, UNP | energy, financials, large cap, Quality, rates, technology, value | - | Diamond Hill's value approach faced growth market headwinds in Q4, underperforming on technology exposure while benefiting from financials positioning. The Fed's dovish pivot drove rate-sensitive rallies. Portfolio remains focused on high-quality, less-cyclical companies trading below intrinsic value despite challenging market valuations and narrow leadership from mega-cap technology stocks. |
| Sep 30 2023 | 2023 Q3 | ABT, AIG, CAT, COP, CVX, DIS, EXR, FANG, GM, HCA, KKR, KMX, LH, SHW, TGT, TXN, VZ | energy, fundamentals, large cap, rates, real estate, Utilities, value | - | Diamond Hill's Large Cap Fund performed in line with markets during Q3's first negative quarter, benefiting from energy outperformance while consumer holdings struggled with rate pressures. The fund added quality names during market weakness including Permian operator Diamondback Energy and self-storage leader Extra Space Storage. Narrowing market breadth creates opportunities for disciplined fundamental investors despite challenging rate environment. |
| Jul 25 2023 | 2023 Q2 | ABBV, AIG, AMZN, DIS, FERG, HCA, HUM, KMX, MSFT, PFE, TFC, TGT, TTWO, WY | AI, Banking, healthcare, large cap, rates, technology, value |
AIG BRK/A|CSGP|KMX AMZN FERG ICLR|LLY|PLTR|SNPS|TGT |
Diamond Hill's value-focused Large Cap Fund underperformed in Q2 due to tech underweight but added quality names Ferguson and Target at attractive valuations. Strong performance from AIG's insurance turnaround and Amazon's AI-driven AWS growth offset weakness in healthcare names. Management believes their value approach is well-positioned for higher rate environment despite recession risks. |
| Mar 31 2023 | 2023 Q1 | AIG, ALL, AMZN, BKNG, GOOGL, LEA, LIN, MSFT, NVR, RRX, TFC | Banking, financials, Intrinsic Value, large cap, technology, value |
FRC TFC ALL LEA RRX |
Diamond Hill's Large Cap Strategy underperformed in Q1 due to banking sector exposure during regional bank failures, but used volatility to exit positions near fair value and initiate new holdings at attractive discounts. The firm maintains conviction in their bottom-up value approach, expecting to deliver superior returns over five years despite near-term macro headwinds. |
| Dec 31 2022 | 2022 Q4 | ABT, AIG, AMZN, CAT, COP, FCX, GOOG, HD, MSFT, TFC, UNP | - | - | |
| Oct 26 2022 | 2022 Q3 | ABT, AIG, COP, DE, GOOG, NDAQ, PFE, SYK, VFC | - | - |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2026 Q2 |
AIAI continues to be the most notable theme in equity markets, with hundreds of billions being spent to build capacity. The information technology sector returned 81% in Q2 2026, driven by AI-related capital expenditures. The Fund's lack of exposure to AI beneficiaries like Micron, Sandisk, and Western Digital was a significant headwind, with Micron alone responsible for 25% of underperformance. |
Data Centers Semiconductors Cloud Technology |
SemiconductorsSemiconductor companies benefiting from AI-driven demand posted exceptional returns. Micron's large index weight and enormous return drove significant relative underperformance for the Fund due to lack of exposure. Texas Instruments provided a modest offset as it saw a rebound in its industrial end market, with improving demand trends in industrial and data center segments. |
Memory AI Data Centers Industrial | |
SoftwareSoftware exposure continued to detract from relative performance as uncertainty around AI's impact weighs on the industry. The manager believes investors underestimate the stickiness of Salesforce, Adobe, and Microsoft products among enterprise customers, and that current valuations embed too much pessimism. However, concerns grew about Wix.com's core business slowdown due to AI-driven vibe coding, leading to position elimination. |
Enterprise Software SaaS AI CRM | |
Managed CareTwo newer managed care holdings, Humana and Elevance, were strong contributors on better-than-expected Medicare rate increases announced in early April. These increased rates will be helpful for the industry in closing the gap between pricing and cost trends. The manager believes margins will normalize upward over time as companies price to reflect higher utilization and as government reimbursement rates improve. |
Healthcare Medicare Insurance Reimbursement | |
SteelNucor benefited from data center buildouts driving strong demand for steel and steel-related products. Reduced import competition and supportive trade policy strengthened pricing power for domestic producers. The company also benefited from solid shipment volumes, which supported improved earnings, particularly in its steel mills segment. |
Data Centers Trade Policy Materials Industrials | |
EnergyEnergy was the worst-performing sector at -14% as an agreement to end the war in Iran led to a significant drop in oil prices. ConocoPhillips saw shares decline after the agreement to reopen the Strait of Hormuz, as the market viewed the risk of a meaningful supply disruption as diminished and the war-related risk premium dissipated. |
Oil Geopolitics Iran Exploration & Production | |
ValuationsThe manager believes above-average equity market valuations are likely to lead to below-average returns over the next five years. Despite this macro view, they continue to find attractive opportunities on a bottom-up basis and are confident they can achieve better-than-market returns through active portfolio management. |
Market Outlook Value Active Management | |
| 2026 Q1 |
OilEnergy positioning in oil-sensitive exploration and production companies was intentional and beneficial in Q1 as oil prices rose sharply due to the war in Iran and closure of the Strait of Hormuz. The fund holds ConocoPhillips and Diamondback Energy which benefited from higher commodity prices and potential for strong capital returns. |
Oil Energy Exploration Production Geopolitical |
AIThe fund has little exposure to AI-related capital spending theme which continues to hurt relative performance as hundreds of billions are being spent on AI infrastructure. Where they do have technology exposure, they're monitoring AI disruption risks closely but believe current valuations discount an overly dire scenario for their software holdings. |
AI Technology Software Disruption Valuation | |
| 2025 Q4 |
FinancialsThe Fund is currently substantially invested in the Financials sector, with performance closely tied to developments in this industry. Companies in the Financials sector may be adversely affected by changes in the regulatory environment and interest rate changes. |
Banks Insurance Interest Rates Regulation |
| 2025 Q3 |
AIAI-fueled boom continues driving technology and communication services sectors, with sentiment potentially disconnected from reality as AI's potential is yet to be fully realized. Markets are rewarding companies with minimal AI exposure while punishing those at risk of disruption. |
Technology Sentiment Disruption Valuation Bubble |
ValueFocus on identifying high-quality companies the markets may be overlooking, seeking areas where valuations are disconnected from underlying fundamentals and long-term growth outlooks. Capitalizing on opportunities created by market's narrow AI focus. |
Fundamentals Intrinsic Value Discount Quality Overlooked | |
DefenseL3Harris Technologies capitalizing on strong demand from US government and allies in key areas including small satellites, secure communications and rocket motors, with preparations for potential threats driving opportunity. |
Government Satellites Communications Rockets Threats | |
Data CentersCaterpillar benefiting from positive sentiment around its power-generation business tied to data center growth, representing a key driver for the heavy construction machinery manufacturer. |
Power Generation Growth Infrastructure Construction | |
| 2025 Q2 |
AIAI-fueled boom continues driving technology and communication services sectors, with sentiment around AI's potential to radically change life remaining high. However, manager believes sentiment is partially disconnected from reality as AI's potential is yet to be fully proven, creating opportunities for discerning investors. |
Technology Sentiment Disruption Valuation Opportunity |
Trade PolicyTariffs remained a top headline in Q3, with markets initially declining on Trump's tariff announcements but later rebounding. General Motors benefited from growing clarity around tariffs improving business visibility, while lululemon faces expected disproportionate impact from tariffs and removal of de minimis exemption. |
Tariffs Policy Automotive Retail Uncertainty | |
Infrastructure SpendingInfrastructure and non-residential construction appear poised to improve, benefiting companies like Martin Marietta Materials which is well-positioned as one of the US's largest aggregates producers and distributors. The company is optimizing its portfolio including divesting its Midlothian cement plant. |
Construction Materials Aggregates Non-residential Positioning | |
Defense SpendingL3Harris Technologies is capitalizing on strong demand from the US government and allies in key areas including small satellites, secure communications and rocket motors. The company's cost-cutting efforts are bearing fruit with improved execution at acquired Aerojet Rocketdyne amid Department of Defense preparations for potential threats. |
Defense Government Satellites Communications Aerospace | |
| 2025 Q1 |
Trade PolicyPresident Trump announced significant tariffs including 104% on China in response to retaliation, creating widespread market uncertainty. The administration's determination to reshape global trade relationships is causing companies to preemptively invest in US operations to avoid tariffs. |
Tariffs China Trade War Retaliation Negotiations |
VolatilityMarkets experienced their first quarterly decline since Q3 2023, with heightened uncertainty from policy shifts creating compelling investment opportunities. The manager views current volatility as resetting valuations and offering attractive entry points for high-quality companies. |
Market Decline Uncertainty Valuations Opportunities Reset | |
| 2024 Q4 |
Trade PolicyTrade policy uncertainty has fueled a rise in the US dollar and is roiling local politics globally. President-elect Trump's tariff threats are creating market shifts and uncertainty among central banks, with the Bank of Japan explicitly citing uncertainty around Trump's policies as reason for pausing rate increases. |
Tariffs Dollar Uncertainty Policy Emerging Markets |
BuybacksGeneral Motors has allocated capital well, repurchasing shares at a high rate and creating significant shareholder value. With a strong balance sheet, the company is well-positioned to continue driving shareholder value through share repurchases. |
Share Repurchases Capital Allocation Shareholder Value | |
CloudAmazon Web Services revenue growth accelerated in the quarter, and despite increased AI-related capital expenditures, margins improved to all-time highs. Amazon continues taking share in non-discretionary categories while cloud infrastructure remains a key growth driver. |
AWS Infrastructure AI Margins Growth | |
| 2024 Q3 |
RatesThe Federal Reserve cut US rates 50 basis points in September and signaled several more rate cuts are on the table. Several other major global central banks cut rates too, including the European Central Bank, Swiss National Bank and People's Bank of China. The apparent end of the higher interest-rate cycle helped spur markets higher in September. |
Interest Rates Federal Reserve Monetary Policy Rate Cuts Central Banks |
HomebuildersHomebuilder NVR benefited from limited existing home sales, combined with still-strong new home buyer demand. Looking forward, lower interest rates may spur further demand. The fund initiated a position in Builders FirstSource as new single-family housing construction increases to meet high demand and low supply. |
Housing Construction Building Materials Real Estate Interest Rates | |
OilOil and gas exploration and production companies were broadly pressured in Q3 as general fears around weaker future global oil demand drove down West Texas Intermediate and Brent crude oil prices. Investors also seem to be weighing whether US-based exploration and production companies will be able to generate significant future free cash flow. |
Energy Oil Prices Exploration Production Crude Oil | |
ValuationsValuations continue to slowly grind higher, and market participants appear largely unfazed, showing little concern about the sustainability of these elevated valuations. Although supported somewhat by the fall in interest rates since their peak in October 2023, these valuations may still challenge the ability to generate returns that align with historical averages over the next five years. |
Market Valuation Price Multiples Returns Risk Assessment Market Outlook | |
| 2024 Q2 |
AIAI-related stocks have driven increasingly narrow market performance with a small number of massive technology stocks driving the majority of index returns. NVIDIA alone has contributed nearly one-third of equity market returns with its +150% increase year to date. |
NVIDIA Technology Mega Cap Performance Returns |
ValueThe fund maintains disciplined adherence to their value philosophy, looking past latest trends to identify high-quality, underappreciated companies. They believe this offers an increasingly interesting environment to deploy their fundamental approach amid the market's narrow focus. |
Undervalued Quality Fundamental Philosophy Discipline | |
CloudAmazon Web Services business is benefiting from strong profitability and growing optimism around demand as customers' investments in generative AI projects continue growing. Cloud infrastructure remains a key driver of performance. |
AWS Amazon Infrastructure Generative AI Profitability | |
| 2024 Q1 |
Electric VehiclesGeneral Motors continues capitalizing on the shift to electric vehicles while maintaining the strength of its core gas-engine truck and SUV business. BorgWarner faced near-term volatility in the ongoing shift to electric vehicles and hybrids, which has impacted results and weighed on shares. |
Electric Vehicles Automotive EV Transition Hybrids Auto Parts |
RatesMarkets focused narrowly on global monetary policy and its future direction throughout the quarter. The Federal Reserve is expected to keep interest rates higher for longer than anticipated, affecting real estate and REITs. Japan ended its ultra-loose monetary policy regime, raising rates from -0.1% to +0.1%. |
Interest Rates Monetary Policy Federal Reserve Central Banks REITs | |
HealthcareHCA Healthcare benefited from strong demand environment for hospitals with normalizing nursing labor costs and improving margins. Humana faced pressure from accelerating medical costs among its Medicare population, weighing on health plan profitability. Corporate earnings are expected to see a rebound in health care sector earnings after a large decline in 2023. |
Healthcare Hospitals Health Insurance Medicare Medical Costs | |
| 2023 Q4 |
ValueThe fund focuses on finding good companies with solid fundamentals trading at attractive discounts to intrinsic value estimates. They emphasize their rigorous, bottom-up approach to identifying compelling investing opportunities despite market uncertainty. |
Intrinsic Value Discounts Fundamentals Bottom-up Valuation |
RatesFederal Reserve policy dominated Q4 markets as investors reached consensus that global monetary authorities were done raising rates. The Fed's dovish pivot benefited rate-sensitive sectors like real estate and financials, while creating uncertainty about future policy direction. |
Federal Reserve Interest Rates Monetary Policy Dovish Rate Cuts | |
QualityThe fund seeks high-quality companies with strong balance sheets, smart capital allocation, and solid fundamentals. They highlight examples like KKR's improved compensation structure and Bank of America's diversified deposit base as quality characteristics they value. |
Balance Sheets Capital Allocation Fundamentals Diversified Quality | |
| 2023 Q3 |
EnergyEnergy sector had the best Q3 performance with 12% gains driven by rising oil prices. Portfolio benefited from holdings in ConocoPhillips and Chevron which outpaced the index. Added Diamondback Energy as a pure-play Permian operator with strong operational capabilities and intelligent capital allocation. |
Oil Exploration & Production Permian Energy Trading Integrated Oil & Gas |
RatesRising interest rates significantly impacted market performance and sector rotation. Long-term Treasury rates rose notably toward quarter-end, with Fed signaling higher for longer policy stance. Rate environment pressured utilities, real estate, and consumer sectors while affecting auto financing costs. |
Interest Rates Fed Policy Treasury Monetary Policy Rate Hikes | |
ValueValue stocks generally outperformed growth during Q3 downturn, reversing the year-to-date trend. Market breadth narrowed meaningfully with gains concentrated in small handful of leaders, creating opportunities for bottom-up fundamental investors to identify attractive valuations. |
Value Investing Market Breadth Fundamental Analysis Attractive Valuations Bottom-up | |
| 2023 Q2 |
ValueThe fund emphasizes value investing philosophy and approach, believing it is well-suited to an environment with higher rates and inflation where value stocks are positioned to produce abundant cash flows. The team focuses on achieving value-added results through active portfolio management. |
Value Cash flows Undervalued Intrinsic value Discount |
RatesFederal Reserve raised rates 25 basis points in May to 5.00%-5.25% range and hinted the hiking cycle may be nearing conclusion. Higher interest rates are creating challenges for banks and affecting economic growth, while the team believes their approach is well-suited to this higher rate environment. |
Interest rates Federal Reserve Monetary policy Rate hikes Banking | |
AIAmazon's AWS business is benefiting from market focus shifting to how AI can help accelerate adoption of public cloud services. The market has moved focus from where growth will bottom to AI's potential to drive future cloud adoption. |
Artificial intelligence Cloud services AWS Technology adoption Growth acceleration | |
| 2023 Q1 |
Credit StressRegional bank failures including SVB and Signature Bank created market volatility and concerns about contagion. The fund exited First Republic Bank due to deposit concentration risks while maintaining conviction in Truist Financial despite sector pressure. |
Banking Deposits Liquidity Contagion Regional Banks |
ValueThe strategy focuses on identifying high-quality companies trading at attractive valuations relative to intrinsic value estimates. Portfolio activity involved exiting positions that approached fair value and reallocating to more deeply discounted opportunities. |
Intrinsic Value Discount Valuation Bottom-up Quality |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Mar 31, 2026 | Fund Letters | Diamond Hill Large Cap Strategy | MSFT | Microsoft Corporation | Software - Infrastructure | Systems Software | Bull | NASDAQ | AI, Azure, Bull, Cloud computing, Enterprise software, OpenAI, Software, technology | Login |
| Mar 31, 2026 | Fund Letters | Diamond Hill Large Cap Strategy | KMB | Kimberly-Clark Corporation | Household & Personal Products | Household Products | Bull | New York Stock Exchange | acquisition, Bull, consumer staples, Consumer-health, Cost synergies, defensive, household products, Kenvue | Login |
| Mar 31, 2026 | Fund Letters | Diamond Hill Large Cap Strategy | CARR | Carrier Global Corporation | Building Products & Equipment | Building Products | Bull | New York Stock Exchange | Building Products, Bull, Commercial, Cyclical, HVAC, Margin Improvement, market share, Residential, spin-off | Login |
| Jan 27, 2026 | Fund Letters | Chuck Bath | GM | General Motors Company | Consumer Discretionary | Automobile Manufacturers | Bull | New York Stock Exchange | Autos, Cyclicality, EV, marketshare, Pricing | Login |
| Jan 27, 2026 | Fund Letters | Chuck Bath | AIG | American International Group, Inc. | Financials | Property & Casualty Insurance | Bull | New York Stock Exchange | buybacks, capital return, Expenses, Insurance, Mna | Login |
| Jan 27, 2026 | Fund Letters | Chuck Bath | COF | Capital One Financial Corporation | Financials | Consumer Finance | Bull | New York Stock Exchange | buybacks, Consumerfinance, creditcards, earnings, Economy | Login |
| Jan 27, 2026 | Fund Letters | Chuck Bath | ZTS | Zoetis Inc. | Health Care | Pharmaceuticals | Bear | New York Stock Exchange | Animal Health, Demand, guidance, healthcare, pipeline | Login |
| Jan 27, 2026 | Fund Letters | Chuck Bath | LH | Labcorp Holdings Inc. | Health Care | Diagnostics & Research | Bear | New York Stock Exchange | diagnostics, healthcare, Margins, restructuring, scale | Login |
| Jan 27, 2026 | Fund Letters | Chuck Bath | SYY | Sysco Corporation | Consumer Staples | Food Distribution | Bear | New York Stock Exchange | consumer, Defensiveness, Distribution, Foodservice, scale | Login |
| Jan 27, 2026 | Fund Letters | Chuck Bath | COO | The Cooper Companies, Inc. | Health Care | Health Care Supplies | Bull | New York Stock Exchange | Contact lenses, growth, Medicaldevices, valuation, Womenshealth | Login |
| Jan 27, 2026 | Fund Letters | Chuck Bath | DOV | Dover Corporation | Industrials | Industrial Conglomerates | Bull | New York Stock Exchange | Cyclicality, Execution, Industrials, Margins, valuation | Login |
| Jan 27, 2026 | Fund Letters | Chuck Bath | WIX | Wix.com Ltd. | Information Technology | Application Software | Bull | NASDAQ | AI, Platforms, SaaS, Software, valuation | Login |
| Jan 27, 2026 | Fund Letters | Chuck Bath | SOLV | Solventum Corporation | Health Care | Health Care Technology | Bull | New York Stock Exchange | Healthcare IT, Margins, R And D, spinoff, turnaround | Login |
| Jan 27, 2026 | Fund Letters | Chuck Bath | EQT | EQT Corporation | Energy | Oil & Gas Exploration & Production | Bull | New York Stock Exchange | Commodities, Cost leadership, energy, infrastructure, Naturalgas | Login |
| Oct 24, 2025 | Fund Letters | Chuck Bath | FDX | FedEx Corporation | Industrials | Air Freight & Logistics | Bull | NYSE | cost-cutting, Freight, Logistics, Margins, restructuring, spin-off, Transportation | Login |
| Oct 24, 2025 | Fund Letters | Chuck Bath | ZTS | Zoetis Inc. | Health Care | Pharmaceuticals | Bull | NASDAQ | Animal Health, growth, innovation, Pets, pharmaceuticals, pipeline, valuation | Login |
| Sep 30, 2025 | Fund Letters | Diamond Hill Large Cap Strategy | FDX | FedEx Corporation | Industrials | Air Freight & Logistics | Bull | NYSE | Cost Reduction, Cyclical, e-commerce, Freight, Logistics, Ltl, spin-off, Transportation, Value | Login |
| Sep 30, 2025 | Fund Letters | Diamond Hill Large Cap Strategy | TMO | Thermo Fisher Scientific Inc. | Health Care | Life Sciences Tools & Services | Bull | NYSE | diagnostics, growth, healthcare, life sciences, market leader, Medical Tools, Product Portfolio, scale | Login |
| Sep 30, 2025 | Fund Letters | Diamond Hill Large Cap Strategy | ZTS | Zoetis Inc. | Health Care | Pharmaceuticals | Bull | NYSE | Animal Health, Companion Animals, growth, Livestock, Pet Care, pharmaceuticals, pipeline, Veterinary | Login |
| Sep 30, 2025 | Fund Letters | Diamond Hill Large Cap Strategy | EQH | Equitable Holdings, Inc. | Financials | Life & Health Insurance | Bull | NYSE | cash generation, diversification, financial services, financials, life insurance, profitability, transformation, Value | Login |
| Jul 27, 2025 | Fund Letters | Chuck Bath | RRX | Regal Rexnord Corporation | Industrials | Electrical Components & Equipment | Bull | NYSE | Automation, deleveraging, efficiency, Industrials, Margins, powertrain, synergies | Login |
| Jul 27, 2025 | Fund Letters | Chuck Bath | FERG | Ferguson plc | Industrials | Trading Companies & Distributors | Bull | NYSE | consolidation, construction, Distribution, HVAC, infrastructure, Margins, scale | Login |
| Jul 27, 2025 | Fund Letters | Chuck Bath | ADBE | Adobe Inc | Information Technology | Application Software | Bull | NASDAQ | AI, cashflow, Creativity, growth, Moat, Software, Subscription | Login |
| Sep 30, 2024 | Fund Letters | Diamond Hill Large Cap Strategy | AON | Aon plc | Financials | Insurance Brokers | Bull | NYSE | Free Cash Flow, Insurance Broker, M&A Integration, professional services, Quality, Value | Login |
| Sep 30, 2024 | Fund Letters | Diamond Hill Large Cap Strategy | ACN | Accenture plc | Information Technology | IT Consulting & Other Services | Bull | NYSE | Consulting, Differentiated Services, Digital transformation, IT services, Stable Margins, technology | Login |
| Sep 30, 2024 | Fund Letters | Diamond Hill Large Cap Strategy | BLDR | Builders FirstSource Inc | Industrials | Trading Companies & Distributors | Bull | NASDAQ | Acquisitions, Building materials, Digital Solutions, Housing Construction, Lumber, market share, Prefabricated Products | Login |
| Jun 30, 2024 | Fund Letters | Diamond Hill Large Cap Strategy | IP | International Paper Company | Materials | Paper & Forest Products | Bull | NYSE | Containerboard, Cyclical, manufacturing, margin expansion, materials, Packaging, Value | Login |
| Jun 30, 2024 | Fund Letters | Diamond Hill Large Cap Strategy | SBUX | Starbucks Corporation | Consumer Discretionary | Restaurants | Bull | NASDAQ | China, Coffee, Consumer Discretionary, global leader, margin expansion, Restaurants, scale | Login |
| Jun 30, 2023 | Fund Letters | Diamond Hill Large Cap Strategy | AIG | American International Group | Financials | Insurance | Bull | NYSE | Asset Sale, cash flow, Insurance, P&C insurance, Reinsurance, share repurchase, turnaround, underwriting | Login |
| Jun 30, 2023 | Fund Letters | Diamond Hill Large Cap Strategy | BRK/A|CSGP|KMX | CarMax | Consumer Discretionary | Specialty Retail | Bull | NYSE | Auto retail, competitive positioning, cost structure, Industry leader, margin expansion, market share, used car retail | Login |
| Jun 30, 2023 | Fund Letters | Diamond Hill Large Cap Strategy | AMZN | Amazon | Consumer Discretionary | Internet & Direct Marketing Retail | Bull | NASDAQ | Artificial Intelligence, AWS, Cloud computing, Competitive advantages, e-commerce, growth, Retail Profitability | Login |
| Jun 30, 2023 | Fund Letters | Diamond Hill Large Cap Strategy | FERG | Ferguson | Industrials | Trading Companies & Distributors | Bull | NYSE | Distribution, Fragmented Industry, HVAC, index inclusion, margin expansion, market leader, Plumbing, Scale Advantages | Login |
| Jun 30, 2023 | Fund Letters | Diamond Hill Large Cap Strategy | ICLR|LLY|PLTR|SNPS|TGT | Target | Consumer Discretionary | General Merchandise Stores | Bull | NYSE | inventory management, Margin recovery, market share, Mass retail, merchandising, Omnichannel, Real Estate | Login |
| Mar 31, 2023 | Fund Letters | Diamond Hill Large Cap Strategy | FRC | First Republic Bank | Financials | Banks | Bear | NYSE | Banking Crisis, credit quality, exit strategy, liquidity risk, regional bank, risk management, uninsured deposits | Login |
| Mar 31, 2023 | Fund Letters | Diamond Hill Large Cap Strategy | TFC | Truist Financial | Financials | Banks | Bull | NYSE | Contrarian Value, insurance brokerage, Southeastern US, Sticky Deposits, Super-Regional Bank, Undervalued Assets, uninsured deposits | Login |
| Mar 31, 2023 | Fund Letters | Diamond Hill Large Cap Strategy | ALL | Allstate | Financials | Insurance | Bull | NYSE | Auto Insurance, brand recognition, Claims Inflation, Homeowners Insurance, Pricing power, Property & Casualty Insurance, Scale Advantages | Login |
| Mar 31, 2023 | Fund Letters | Diamond Hill Large Cap Strategy | LEA | Lear Corporation | Consumer Discretionary | Auto Components | Bull | NYSE | automotive seating, Automotive Supplier, cash generation, Global Manufacturing, ICE/EV Agnostic, intrinsic value, Market Selloff | Login |
| Mar 31, 2023 | Fund Letters | Diamond Hill Large Cap Strategy | RRX | Regal Rexnord Corporation | Industrials | Electrical Equipment | Bull | NYSE | Automation, electric motors, Electrification, energy efficiency, HVAC, Industrial Equipment, M&A Synergies, Motion Control, Re-shoring | Login |
| TICKER | COMMENTARY |
|---|---|
| TXN | Semiconductor and processor producer Texas Instruments saw shares rise after issuing 2Q26 guidance above market expectations, signaling improving demand trends, particularly in industrial and data center end markets. Texas Instruments provided a modest offset to this headwind, as it is finally seeing a rebound in its key industrial end market. |
| HUM | Health care services and insurance company Humana is a new holding in 2Q26 and the second-largest Medicare Advantage insurer in the US. Shares outperformed in 2Q26 after the company delivered strong 1Q26 results and on better-than-expected Medicare rate increases announced in early April, which will be helpful for the industry in closing the gap between pricing and cost trends. Health care services and insurance company Humana is the second-largest Medicare Advantage insurer in the US. Margins have been squeezed in recent years from rising medical costs and lower government reimbursement; however, we believe margins will normalize upward over time as the company prices to reflect higher utilization and as government reimbursement rates improve. Relative to a more normal earnings base, we believe the valuation is very attractive. |
| NUE | Shares of US steel producer Nucor rose as reduced import competition and supportive trade policy strengthened pricing power for domestic producers. The company also benefited from solid shipment volumes, which supported improved earnings, particularly in its steel mills segment. Within materials, Nucor is one of our few holdings that is benefitting from data center buildouts, which are driving strong demand for steel and steel-related products. |
| ZTS | Shares of Zoetis, an animal health company, underperformed after the company reported flat organic revenue growth and lowered full-year guidance amid softer US companion-animal demand, fewer veterinary visits and a more competitive market. These results heightened concerns that slowing growth in the legacy portfolio could create a near-term earnings gap before newer pipeline products contribute more meaningfully. |
| COP | Exploration and production company ConocoPhillips 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. |
| ACN | Shares of global information technology services company Accenture underperformed after the company reported weaker-than-expected results, noting that near-term demand for its services remained subdued. These results reinforced investor concerns that AI could disrupt portions of its business. However, we believe the company remains well positioned within the broader information technology ecosystem, and its valuation remains attractive relative to its long-term prospects. |
| ELV | Elevance Health is one of the largest health insurers in the US. Along with the rest of the insurance industry, the company's margins have been pressured due to rising medical costs and lower government reimbursement. Despite these headwinds, we believe the long-term earnings power of the business is positive. Two newer managed care holdings, Humana and Elevance, were strong contributors on better-than-expected Medicare rate increases announced in early April, which will be helpful for the industry in closing the gap between pricing and cost trends. |
| FDXF | FedEx Freight is a spin-off of shipping company FedEx Corp., creating a standalone less-than-truckload (LTL) carrier that is the industry's largest by revenue. The LTL industry is highly concentrated, with disciplined operators and favorable demand trends. As a standalone company, FedEx Freight should be better positioned to focus on operational execution and improve margins, where it currently trails leading competitors. |
| WIX | Wix.com is a website design software and provides 'business in a box' back-end functionality to small businesses. The company's core business has experienced slowing growth due to AI-driven vibe coding, and after reporting underwhelming 1Q26 results, the company announced a reduction in force and reduced revenue growth guidance for 2026. Given the fundamental headwinds the company is facing, we exited our position to deploy capital to more attractive opportunities. However, we have become more concerned with the slowdown of Wix.com's core business, and we eliminated the position. |
| GM | Shares of automaker General Motors were sold to allocate funds to more attractive opportunities. |
| RRX | Shares of electrical product manufacturer Regal Rexnord were sold to allocate funds to more attractive opportunities. |
| SBUX | In consumer discretionary, Starbucks shares were strong as its turnaround is gaining traction. We eliminated Starbucks as it approached our estimate of intrinsic value. Shares of coffee chain Starbucks were sold to allocate funds to more attractive opportunities. |
| SSNC | Shares of SS&C Technologies, a diversified provider of tech-enabled services and software to the financial services industry, were sold to allocate funds to more attractive opportunities. |
| CRM | Our software exposure continued to detract from relative performance, as uncertainty around the impact of AI continues to weigh on the industry. While this remains a risk we are monitoring closely, we still believe investors are underestimating the stickiness of Salesforce, Adobe and Microsoft products among enterprise customers, and that current valuations embed too much pessimism about their future prospects. |
| ADBE | Our software exposure continued to detract from relative performance, as uncertainty around the impact of AI continues to weigh on the industry. While this remains a risk we are monitoring closely, we still believe investors are underestimating the stickiness of Salesforce, Adobe and Microsoft products among enterprise customers, and that current valuations embed too much pessimism about their future prospects. |
| MSFT | Our software exposure continued to detract from relative performance, as uncertainty around the impact of AI continues to weigh on the industry. While this remains a risk we are monitoring closely, we still believe investors are underestimating the stickiness of Salesforce, Adobe and Microsoft products among enterprise customers, and that current valuations embed too much pessimism about their future prospects. |
| MU | Not having exposure to a wide range of technology companies benefiting from AI-related capital expenditures, such as Micron, Sandisk, Western Digital and many others, was a very meaningful headwind to relative performance. Our lack of exposure to Micron alone was responsible for approximately 25% of the Fund's 2Q26 underperformance due to its large weight in the index and enormous return. |
| KMX | In consumer discretionary, CarMax rebounded as its comparable sales improved. |
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