Diamond Hill Capital Management Launches Large Cap Concentrated Fund

Rhea-AI Summary

Diamond Hill Capital Management has launched the Diamond Hill Large Cap Concentrated Fund, making its previously managed strategy since 2011 accessible as a mutual fund. Managed by Chuck Bath and Austin Hawley, the fund targets approximately 20 positions with market caps over $15 billion that are deemed undervalued. The firm currently oversees $30.6 billion in assets as of March 31, 2021. The fund comes with a risk disclosure highlighting the potential for greater value decline due to its concentrated portfolio.

Positive

• Launch of the Diamond Hill Large Cap Concentrated Fund increases accessibility for investors.
• The fund's strategy, managed by experienced professionals, aims to target undervalued large-cap stocks.
• Diamond Hill's management has significant assets under management at $30.6 billion, reflecting investor confidence.

Negative

• The concentration of holdings may lead to greater volatility and risk if portfolio securities decline in value.
• The Diamond Hill Large Cap Strategy is now closed to most new investors, limiting future capital inflows.

COLUMBUS, Ohio, May 3, 2021 /PRNewswire/ -- Diamond Hill Capital Management, Inc., a subsidiary of Diamond Hill Investment Group, Inc. (NASDAQ: DHIL), announced today the launch of the Diamond Hill Large Cap Concentrated strategy as a mutual fund. Diamond Hill has managed assets in a Large Cap Concentrated strategy since 2011 but is now making the strategy more widely available through a mutual fund.

The Large Cap Concentrated Fund is managed by Chuck Bath, CFA, and Austin Hawley, CFA, and supported by Diamond Hill's U.S. equity research team. The Large Cap Concentrated Fund is non-diversified and will hold approximately 20 positions with market capitalization of $15 billion or greater which the portfolio managers believe are undervalued. Bath and Hawley also manage the diversified Diamond Hill Large Cap Strategy which at $18.3 billion in assets under management is now closed to most new investors.

"Our shared investment principles and selective approach to portfolio construction have naturally led us over time to greater concentration and portfolios that materially differ from peers and common client benchmarks," said Bath.

"The Fund is a good solution for investors seeking a high-conviction portfolio and the differentiated risk/return profile that comes with greater concentration," said Hawley. "We are pleased to be offering the portfolio more broadly to clients who previously would not have access to the strategy."

For more information visit diamond-hill.com.

About Diamond Hill Capital Management

Diamond Hill invests on behalf of clients through a shared commitment to its valuation-driven investment principles, long-term perspective, capacity discipline and client alignment. An independent active asset manager with significant employee ownership, Diamond Hill's investment strategies include differentiated U.S. and international equity, alternative long-short equity and fixed income. As of March 31, 2021, Diamond Hill has $30.6 billion in assets under management. For more information, visit www.diamond-hill.com.

Risk Disclosure: Because this Fund expects to hold a concentrated portfolio of a limited number of securities, a decline in the value of these investments would cause the Fund's value to decline to a greater degree than a less concentrated portfolio.

An investor should consider the Fund's investment objectives, risks, charges, and expenses carefully before investing. The prospectus or summary prospectus contain this and other important information about the Fund(s) and are available at diamond-hill.com or by calling 888.226.5595. Please read the prospectus or summary prospectus carefully before investing. The Diamond Hill Funds are distributed by Foreside Financial Services, LLC (Member FINRA). Diamond Hill Capital Management, Inc., a registered investment adviser, serves as Investment Adviser to the Diamond Hill Funds and is paid a fee for its services. Diamond Hill Funds are not FDIC insured, may lose value, and have no bank guarantee.

Overall equity market risks may affect the value of the fund.

 

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SOURCE Diamond Hill Investment Group, Inc.

FAQ

What is the Diamond Hill Large Cap Concentrated Fund?

The Diamond Hill Large Cap Concentrated Fund is a mutual fund that targets approximately 20 undervalued large-cap stocks.

When was the Diamond Hill Large Cap Concentrated Fund launched?

The fund was launched on May 3, 2021.

Who manages the Diamond Hill Large Cap Concentrated Fund?

The fund is managed by Chuck Bath and Austin Hawley.

What is the market cap requirement for stocks in the Diamond Hill Large Cap Concentrated Fund?

The fund targets stocks with a market capitalization of $15 billion or greater.

What is the total assets under management by Diamond Hill as of March 31, 2021?

As of March 31, 2021, Diamond Hill has $30.6 billion in assets under management.