Diamond Hill Soft Closes Large Cap Strategy

Rhea-AI Summary

Diamond Hill Capital Management announced that its Large Cap Strategy will close to most new investors effective March 31, 2021. This move allows the strategy to focus on long-term performance and maintain portfolio integrity. As of January 31, 2021, the strategy managed $15.0 billion in assets. Existing shareholders can still invest, but new separate accounts will have limited availability. The firm emphasizes its commitment to capacity management to ensure it can deliver value-added returns for clients.

Positive

• Focus on long-term performance over growth in assets.
• Maintains integrity of portfolio management.
• Existing shareholders can continue to invest.

Negative

• None.

COLUMBUS, Ohio, March 1, 2021 /PRNewswire/ -- Diamond Hill Capital Management, Inc., a subsidiary of Diamond Hill Investment Group, Inc. (NASDAQ:DHIL), announced that the Diamond Hill Large Cap Strategy will close to most new investors effective March 31, 2021. The Diamond Hill Large Cap Fund will remain open to additional investment from existing shareholders and certain other new accounts as described in the prospectus dated February 28, 2021. The Large Cap strategy will have limited availability for new separate account clients. The Large Cap strategy had $15.0 billion in assets under management as of January 31, 2021.

Capacity management is a foundational investment principle and key differentiating feature of Diamond Hill's aligned boutique operating model. "Very few of our Large Cap strategy's peers close for capacity reasons. Our aim is to ensure the long-term integrity of the portfolio managers' process and their ability to take advantage of the strategy's full investable universe," said Heather Brilliant, CFA, CEO and president of Diamond Hill. "Our focus on long-term performance rather than asset growth incentivizes our portfolio managers to prioritize existing clients and close strategies before they reach a size that could limit their ability to deliver value-added returns."

"Our primary focus is always on achieving excellent outcomes for clients," said Austin Hawley, portfolio manager of the Large Cap strategy. "We believe the best way to achieve that is to manage high conviction, more concentrated portfolios, which requires a capacity discipline." 

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 January 31, 2021, Diamond Hill has $26.3 billion in assets under management. For more information, visit www.diamond-hill.com.

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 did Diamond Hill announce on March 1, 2021?

Diamond Hill announced the closure of its Large Cap Strategy to most new investors effective March 31, 2021.

What is the asset size of the Diamond Hill Large Cap Strategy?

As of January 31, 2021, the Diamond Hill Large Cap Strategy had $15.0 billion in assets under management.

Can new investors still invest in the Diamond Hill Large Cap Fund?

The Diamond Hill Large Cap Fund remains open to additional investments from existing shareholders and select new accounts.

Why is Diamond Hill closing its Large Cap Strategy to new investors?

The closure is aimed at maintaining long-term performance and ensuring the portfolio managers can manage a concentrated investment approach.

What is the focus of Diamond Hill Capital Management?

Diamond Hill Capital Management focuses on valuation-driven investment principles and long-term performance.