Understanding Edge
By Diamond Hill Capital Mgmt
Join us as we discuss recent market events, challenges and opportunities in the current environment, and more with our investment team.
Founded in 2000, Diamond Hill is an independent investment management firm headquartered in Columbus, Ohio. Strategies include long-only equity, alternative long-short equity, and fixed income.
Understanding EdgeJun 30, 2020
Online Brokerage and the Rise of Robinhood
Analyst Tyler Ventura, CFA, discusses the decades-long brokerage wars and how trading app Robinhood is disrupting the space today.
The views expressed are those of Diamond Hill as of January 2021 and are subject to change. These opinions are not intended to be a forecast of future events, a guarantee of results, or investment advice.
As of December 31, 2020, Diamond Hill owned shares of Charles Schwab Corp. and Morgan Stanley.
This material is for informational purposes and is prepared by Diamond Hill Capital Management. The opinions expressed are as of the date of publication and are subject to change. These opinions are not intended to be a forecast of future events, a guarantee of future results, or investment advice. Reliance upon this information is at the sole discretion of the listener. Investing involves risk including the possible loss of principal.
2020 High Yield Market Recap
Fixed income PM Bill Zox, CFA, discusses what we saw in the high yield markets in 2020, how the team positioned the portfolios through an uncertain election season and grind tighter in corporate spreads.
The views expressed are those of Diamond Hill as of January 2020 and are subject to change. These opinions are not intended to be a forecast of future events, a guarantee of results, or investment advice.
The ICE BofA U.S. High Yield Index tracks the performance of the U.S. dollar denominated below investment grade corporate debt publicly issued in the U.S. domestic market. The index data referenced herein is the property of ICE Data Indices, LLC, its affiliates (“ICE Data”) and/or its third party suppliers and has been licensed for use by Diamond Hill Capital Management, Inc. ICE Data and its third party suppliers accept no liability in connection with its use. See diamond-hill.com/disclosures for a full copy of the disclaimer.
Investment Grade is a Bond Quality Rating of AAA, AA, A or BBB.
This material is for informational purposes and is prepared by Diamond Hill Capital Management. The opinions expressed are as of the date of publication and are subject to change. These opinions are not intended to be a forecast of future events, a guarantee of future results, or investment advice. Reliance upon this information is at the sole discretion of the listener. Investing involves risk including the possible loss of principal.
COVID-19 — Help or Hindrance for the Health Care Sector?
Analyst Laura O’Dell, CFA, discusses COVID-19 vaccines and which areas of the health care sector have been most drastically impacted by the pandemic.
The views expressed are those of Diamond Hill as of November 2020 and are subject to change. These opinions are not intended to be a forecast of future events, a guarantee of results, or investment advice.
As of November 30, 2020, Diamond Hill owned equity shares of Procter & Gamble Co. (The), Pfizer, Inc., Stericycle, Inc. and Integer Holdings Corp.
This material is for informational purposes and is prepared by Diamond Hill Capital Management. The opinions expressed are as of the date of publication and are subject to change. These opinions are not intended to be a forecast of future events, a guarantee of future results, or investment advice. Reliance upon this information is at the sole discretion of the listener. Investing involves risk including the possible loss of principal.
A Conversation with CEO Heather Brilliant
CEO Heather Brilliant reflects on 2020, discussing our ongoing commitment to alignment with clients, our diversity, equity and inclusion efforts, and more.
The views expressed are those of Diamond Hill as of December 2020 and are subject to change. These opinions are not intended to be a forecast of future events, a guarantee of results, or investment advice.
This material is for informational purposes and is prepared by Diamond Hill Capital Management. The opinions expressed are as of the date of publication and are subject to change. These opinions are not intended to be a forecast of future events, a guarantee of future results, or investment advice. Reliance upon this information is at the sole discretion of the listener. Investing involves risk including the possible loss of principal.
Standing Out by Not Fitting In
Fixed income PM Bill Zox, CFA, discusses how our high yield team takes advantage of inefficiencies in the high yield market and why they’re not afraid to construct portfolios that look very different from peers and the index.
The views expressed are those of Diamond Hill as of November 2020 and are subject to change. These opinions are not intended to be a forecast of future events, a guarantee of results, or investment advice.
The ICE BofA U.S. High Yield Index tracks the performance of the U.S. dollar denominated below investment grade corporate debt publicly issued in the U.S. domestic market. The index data referenced herein is the property of ICE Data Indices, LLC, its affiliates (“ICE Data”) and/or its third party suppliers and has been licensed for use by Diamond Hill Capital Management, Inc. ICE Data and its third party suppliers accept no liability in connection with its use. See diamond-hill.com/disclosures for a full copy of the disclaimer.
Investment Grade is a Bond Quality Rating of AAA, AA, A or BBB.
This material is for informational purposes and is prepared by Diamond Hill Capital Management. The opinions expressed are as of the date of publication and are subject to change. These opinions are not intended to be a forecast of future events, a guarantee of future results, or investment advice. Reliance upon this information is at the sole discretion of the listener. Investing involves risk including the possible loss of principal.
The Basics & Benefits of Securitization
Portfolio Manager Henry Song discusses finding value in the underutilized securitized area of the market and how securitized strategies can fit into an investor’s portfolio.
The views expressed are those of Diamond Hill as of November 2020 and are subject to change. These opinions are not intended to be a forecast of future events, a guarantee of results, or investment advice.
Investment Grade is a Bond Quality Rating of AAA, AA, A or BBB.
As of August 31, 2020 Diamond Hill owned debt in JPMorgan Chase & Co.
This material is for informational purposes and is prepared by Diamond Hill Capital Management. The opinions expressed are as of the date of publication and are subject to change. These opinions are not intended to be a forecast of future events, a guarantee of future results, or investment advice. Reliance upon this information is at the sole discretion of the listener. Investing involves risk including the possible loss of principal.
Banking in the Time of a Global Pandemic
Analyst John Loesch shares how banks have fared during this year’s market downturn compared to the financial crisis and discusses how technology and COVID-19 are changing how people bank going into 2021.
The views expressed are those of Diamond Hill as of November 2020 and are subject to change. These opinions are not intended to be a forecast of future events, a guarantee of results, or investment advice.
As of October 31, 2020, Diamond Hill owned equity shares of Sterling Bancorp, First Republic Bank, SVB Financial Group, Live Oak Bancshares, Inc. and Bank OZK.
This material is for informational purposes and is prepared by Diamond Hill Capital Management. The opinions expressed are as of the date of publication and are subject to change. These opinions are not intended to be a forecast of future events, a guarantee of future results, or investment advice. Reliance upon this information is at the sole discretion of the listener. Investing involves risk including the possible loss of principal.
A Research Process Deep Dive
Director of Research Micah Martin discusses how the analyst team approaches fundamental analysis.
The views expressed are those of Diamond Hill as of November 2020 and are subject to change. These opinions are not intended to be a forecast of future events, a guarantee of results, or investment advice.
As of October 31, 2020, Diamond Hill owned equity shares of Cal-Maine Foods, Inc., Green Brick Partners, Inc., Alphabet, Inc. (Cl A). As of August 31, 2020 Diamond Hill owned debt in Home Depot, Inc.
This material is for informational purposes and is prepared by Diamond Hill Capital Management. The opinions expressed are as of the date of publication and are subject to change. These opinions are not intended to be a forecast of future events, a guarantee of future results, or investment advice. Reliance upon this information is at the sole discretion of the listener. Investing involves risk including the possible loss of principal.
Ready for Takeoff or Grounded Indefinitely? – An Airlines Update
Analyst Blake Haxton provides an update on where demand for air travel stands today and discusses the possibility of a stimulus package for airlines.
The views expressed are those of Diamond Hill as of October 2020 and are subject to change. These opinions are not intended to be a forecast of future events, a guarantee of results, or investment advice.
As of September 30, 2020, Diamond Hill owned equity shares of Microsoft Corp., Allegiant Travel Co., Walt Disney Co. and Alaska Air Group, Inc. As of July 31, 2020 Diamond Hill owned debt in American Airlines, Inc., Delta Air Lines, Inc., Southwest Airlines Co., Walt Disney Co. and Alaska Airlines.
This material is for informational purposes and is prepared by Diamond Hill Capital Management. The opinions expressed are as of the date of publication and are subject to change. These opinions are not intended to be a forecast of future events, a guarantee of future results, or investment advice. Reliance upon this information is at the sole discretion of the listener. Investing involves risk including the possible loss of principal.
Breaking Up With Old Habits
Will consumption habits formed amid pandemic shut-downs be more lasting? Perhaps—and that can be key in understanding future demand patterns and how those influence businesses’ long-term earnings power.
The views expressed are those of Diamond Hill as of October 2020 and are subject to change. These opinions are not intended to be a forecast of future events, a guarantee of results, or investment advice.
This material is for informational purposes and is prepared by Diamond Hill Capital Management. The opinions expressed are as of the date of publication and are subject to change. These opinions are not intended to be a forecast of future events, a guarantee of future results, or investment advice. Reliance upon this information is at the sole discretion of the listener. Investing involves risk including the possible loss of principal.
A Discussion With Chief Client Officer Jo Ann Quinif
Chief Client Officer Jo Ann Quinif shares how our client team has continued to serve clients remotely and what she views as unique attributes of the team.
The views expressed are those of Diamond Hill as of September 2020 and are subject to change. These opinions are not intended to be a forecast of future events, a guarantee of results, or investment advice.
This material is for informational purposes and is prepared by Diamond Hill Capital Management. The opinions expressed are as of the date of publication and are subject to change. These opinions are not intended to be a forecast of future events, a guarantee of future results, or investment advice. Reliance upon this information is at the sole discretion of the listener. Investing involves risk including the possible loss of principal.
Is Pharma Reentering a Golden Age of Innovation?
Innovation and productivity in the pharmaceutical industry has been in steady decline for decades. However, we believe the industry is poised for a comeback.
The views expressed are those of Diamond Hill as of September 2020 and are subject to change. These opinions are not intended to be a forecast of future events, a guarantee of results, or investment advice.
As of July 31, 2020, Diamond Hill owned equity shares of Gilead Sciences, Inc., GlaxoSmithKline PLC, Pfizer, Inc., Alphabet, Inc. (Classes A&C), Novartis AG, Astellas Pharma, Inc. and Roche Holdings AG.
This material is for informational purposes and is prepared by Diamond Hill Capital Management. The opinions expressed are as of the date of publication and are subject to change. These opinions are not intended to be a forecast of future events, a guarantee of future results, or investment advice. Reliance upon this information is at the sole discretion of the listener. Investing involves risk including the possible loss of principal.
Energy & Airlines: An Update
Analyst Blake Haxton discusses the state of the oil industry after months of subdued demand and March’s price war, and shares where air travel demand stands today.
The views expressed are those of Diamond Hill as of August 2020 and are subject to change. These opinions are not intended to be a forecast of future events, a guarantee of results, or investment advice.
As of July 31, 2020, Diamond Hill owned Alaska Air Group, Inc. (equity) and Allegiant Travel Co. (equity).
This material is for informational purposes and is prepared by Diamond Hill Capital Management. The opinions expressed are as of the date of publication and are subject to change. These opinions are not intended to be a forecast of future events, a guarantee of future results, or investment advice. Reliance upon this information is at the sole discretion of the listener. Investing involves risk including the possible loss of principal.
Can Smart Buildings Curb COVID-19?
Smart, energy-efficient buildings have been in demand for years, but their features have historically been viewed as luxuries versus necessities. COVID-19 has turned that view on its head.
The views expressed are those of Diamond Hill as of August 2020 and are subject to change. These opinions are not intended to be a forecast of future events, a guarantee of results, or investment advice.
As of July 31, 2020, Diamond Hill owned Johnson Controls International PLC (equity), Carrier Global Corp. (equity) and Honeywell International, Inc. (equity).
This material is for informational purposes and is prepared by Diamond Hill Capital Management. The opinions expressed are as of the date of publication and are subject to change. These opinions are not intended to be a forecast of future events, a guarantee of future results, or investment advice. Reliance upon this information is at the sole discretion of the listener. Investing involves risk including the possible loss of principal.
Through the Eye of the Storm—a Structured Market Recap
Fixed income portfolio manager Henry Song reviews the volatile first half of 2020 in the securitized market, from the early days of the pandemic to the more recent recovery.
The views expressed are those of Diamond Hill as of July 2020 and are subject to change. These opinions are not intended to be a forecast of future events, a guarantee of results, or investment advice.
This material is for informational purposes and is prepared by Diamond Hill Capital Management. The opinions expressed are as of the date of publication and are subject to change. These opinions are not intended to be a forecast of future events, a guarantee of future results, or investment advice. Reliance upon this information is at the sole discretion of the listener. Investing involves risk including the possible loss of principal.
High Yield: Reflections on a Crisis
Portfolio Manager John McClain reviews the historic first half of 2020, discussing opportunities in the investment grade space, fallen angels and the ongoing opportunity in the high yield market.
The views expressed are those of Diamond Hill as of July 2020 and are subject to change. These opinions are not intended to be a forecast of future events, a guarantee of results, or investment advice.
As of June 30, 2020, Diamond Hill owned equity shares of TJX Cos., Inc. (The). As of April 30, 2020, Diamond Hill owned debt in Ford Motor Credit Co. LLC, Ford Motor Co., Occidental Petroleum Corp., Sysco Corp., TJX Companies, Inc. and Wells Fargo & Co.
Investment Grade is a Bond Quality Rating of AAA, AA, A or BBB.
Click here for more information about the Refinitiv Lipper Awards.
This material is for informational purposes and is prepared by Diamond Hill Capital Management. The opinions expressed are as of the date of publication and are subject to change. These opinions are not intended to be a forecast of future events, a guarantee of future results, or investment advice. Reliance upon this information is at the sole discretion of the listener. Investing involves risk including the possible loss of principal.
Value Investing, Evolved
CIO Austin Hawley discusses the dramatic underperformance of value stocks relative to growth stocks, why traditional definitions of value may need to evolve with the changing economy and why price is still an important factor in determining future returns.
The views expressed are those of Diamond Hill as of June 2020 and are subject to change. These opinions are not intended to be a forecast of future events, a guarantee of results, or investment advice.
As of May 31, 2020, Diamond Hill owned Facebook, Inc. (Cl A) (equity) and Alphabet, Inc. (Cl A) (equity). As of March 31, 2020 Diamond Hill owned Netflix, Inc. (debt).
This material is for informational purposes and is prepared by Diamond Hill Capital Management. The opinions expressed are as of the date of publication and are subject to change. These opinions are not intended to be a forecast of future events, a guarantee of future results, or investment advice. Reliance upon this information is at the sole discretion of the listener. Investing involves risk including the possible loss of principal.
How Machine Learning Is Creating Value for Google and Facebook
From smartphones to voice assistants, machine learning and AI techniques are becoming integral in our daily lives. Internet advertising analyst Varun Gupta examines why these technologies are central to Alphabet and Facebook’s success.
The views expressed are those of Diamond Hill as of June 2020 and are subject to change. These opinions are not intended to be a forecast of future events, a guarantee of results, or investment advice.
As of May 31, 2020, Diamond Hill owned Facebook, Inc. - Class A (equity), Alphabet, Inc. - Class A (equity), Tencent Holdings Ltd. (equity), Berkshire Hathaway, Inc. - Class B (equity), Walt Disney Co. (The) (equity) and Microsoft Corp. (equity). As of March 31, 2020 Diamond Hill owned Netflix, Inc. (debt), Walt Disney Co. (The) (debt), Berkshire Hathaway Financial (debt) and Apple, Inc. (debt).
This material is for informational purposes and is prepared by Diamond Hill Capital Management. The opinions expressed are as of the date of publication and are subject to change. These opinions are not intended to be a forecast of future events, a guarantee of future results, or investment advice. Reliance upon this information is at the sole discretion of the listener. Investing involves risk including the possible loss of principal.
Goodbye Offices? How Remote Working May Impact Commercial Real Estate
COVID-19 has created an unanticipated experiment in working remotely, a trend many have speculated could become the new normal. Real estate analyst Josh Barber explains what a return to the office would look like and what ongoing remote working could mean for our real estate holdings.
The views expressed are those of Diamond Hill as of June 2020 and are subject to change. These opinions are not intended to be a forecast of future events, a guarantee of results, or investment advice.
As of May 31, 2020, Diamond Hill owned Facebook, Inc. - Class A (equity). As of March 31, 2020 Diamond Hill owned Twitter, Inc. (debt).
This material is for informational purposes and is prepared by Diamond Hill Capital Management. The opinions expressed are as of the date of publication and are subject to change. These opinions are not intended to be a forecast of future events, a guarantee of future results, or investment advice. Reliance upon this information is at the sole discretion of the listener. Investing involves risk including the possible loss of principal.
Has the High Yield Opportunity Already Passed?
Portfolio Manager Bill Zox discusses the current opportunity set he sees in the high yield market and how recent intervention by the federal government has impacted the market.
The views expressed are those of Diamond Hill as of May 2020 and are subject to change. These opinions are not intended to be a forecast of future events, a guarantee of results, or investment advice.
The ICE BofA U.S. High Yield Index tracks the performance of the U.S. dollar denominated below investment grade corporate debt publicly issued in the U.S. domestic market. The index data referenced herein is the property of ICE Data Indices, LLC, its affiliates (“ICE Data”) and/or its third party suppliers and has been licensed for use by Diamond Hill Capital Management, Inc. ICE Data and its third party suppliers accept no liability in connection with its use. See diamond-hill.com/disclosures for a full copy of the disclaimer.
This material is for informational purposes and is prepared by Diamond Hill Capital Management. The opinions expressed are as of the date of publication and are subject to change. These opinions are not intended to be a forecast of future events, a guarantee of future results, or investment advice. Reliance upon this information is at the sole discretion of the listener. Investing involves risk including the possible loss of principal.
Financials Update
Banking analyst John Loesch discusses how COVID-19 has impacted bank stocks and how the current rate environment is impacting the sector.
The views expressed are those of Diamond Hill as of May 2020 and are subject to change. These opinions are not intended to be a forecast of future events, a guarantee of results, or investment advice.
As of April 30, 2020, Diamond Hill owned Sterling Bancorp (equity), First of Long Island Corp. (The) (equity), SVB Financial Group (equity), Cadence BanCorp (equity), First Republic Bank (equity) and BOK Financial Corp. (equity).
This material is for informational purposes and is prepared by Diamond Hill Capital Management. The opinions expressed are as of the date of publication and are subject to change. These opinions are not intended to be a forecast of future events, a guarantee of future results, or investment advice. Reliance upon this information is at the sole discretion of the listener. Investing involves risk including the possible loss of principal.
Where's the Beef?
Consumer commodities analyst Micah Martin discusses how COVID-19 has disrupted the U.S. protein supply chain and how this could lead to protein shortages for consumers.
The views expressed are those of Diamond Hill as of April 2020 and are subject to change. These opinions are not intended to be a forecast of future events, a guarantee of results, or investment advice.
As of March 31, 2020 Diamond Hill owned McDonalds Corp. (debt) and Walmart, Inc. (equity,short). As of January 31, 2020 Diamond Hill owned Kroger Co. (The) (debt).
This material is for informational purposes and is prepared by Diamond Hill Capital Management. The opinions expressed are as of the date of publication and are subject to change. These opinions are not intended to be a forecast of future events, a guarantee of future results, or investment advice. Reliance upon this information is at the sole discretion of the listener. Investing involves risk including the possible loss of principal.
Colliding Disruptions—An Energy Market Update
Diamond Hill energy analyst Blake Haxton discusses the recent energy price rout, the collision of supply and demand disruptions, why geology matters in oil production and the impact on long-term investors.
The views expressed are those of Diamond Hill as of April 2020 and are subject to change. These opinions are not intended to be a forecast of future events, a guarantee of results, or investment advice.
Contango is a situation in which the futures price of a commodity is higher than the spot price.
S&P 500® Energy Index measures the performance of those companies included in the S&P 500 that are classified as members of the GICS energy sector.
This material is for informational purposes and is prepared by Diamond Hill Capital Management. The opinions expressed are as of the date of publication and are subject to change. These opinions are not intended to be a forecast of future events, a guarantee of future results, or investment advice. Reliance upon this information is at the sole discretion of the listener. Investing involves risk including the possible loss of principal.
It’s Not a Sprint …
Portfolio Manager John McClain discusses how the mental toughness and preparation required for running marathons helps make him a better, more balanced investor.
The views expressed are those of Diamond Hill as of April 2020 and are subject to change. These opinions are not intended to be a forecast of future events, a guarantee of results, or investment advice.
This material is for informational purposes and is prepared by Diamond Hill Capital Management. The opinions expressed are as of the date of publication and are subject to change. These opinions are not intended to be a forecast of future events, a guarantee of future results, or investment advice. Reliance upon this information is at the sole discretion of the listener. Investing involves risk including the possible loss of principal.
COVID-19 & the Health Care Industry
Health care analysts Chendhore Veerappan and Laura O’Dell discuss treatments health care companies are developing for COVID-19, how they’re ramping testing capacity and what the virus means for health care holdings in our portfolios.
The views expressed are those of Diamond Hill as of April 2020 and are subject to change. These opinions are not intended to be a forecast of future events, a guarantee of results, or investment advice.
As of March 31, 2020 Diamond Hill owned Abbott Laboratories (equity), GlaxoSmithKline PLC (equity), Pfizer, Inc. (equity), Gilead Sciences, Inc. (equity), Roche Holdings AG (equity) and Thermo Fisher Scientific, Inc. (equity). As of January 31, 2020 Diamond Hill owned AbbVie, Inc. (debt) and Abbott Laboratories (debt).
This material is for informational purposes and is prepared by Diamond Hill Capital Management. The opinions expressed are as of the date of publication and are subject to change. These opinions are not intended to be a forecast of future events, a guarantee of future results, or investment advice. Reliance upon this information is at the sole discretion of the listener. Investing involves risk including the possible loss of principal.
Business Continuity
CEO Heather Brilliant, Director of IT John Kroeger and CCO Gary Young discuss our business continuity and disaster recovery plans and how they have been put into action due to COVID-19.
The views expressed are those of Diamond Hill as of March 2020 and are subject to change. These opinions are not intended to be a forecast of future events, a guarantee of results, or investment advice.
This material is for informational purposes and is prepared by Diamond Hill Capital Management. The opinions expressed are as of the date of publication and are subject to change. These opinions are not intended to be a forecast of future events, a guarantee of future results, or investment advice. Reliance upon this information is at the sole discretion of the listener. Investing involves risk including the possible loss of principal.
Discussing Market Volatility with Chuck Bath
Portfolio Manager Chuck Bath discusses how current market volatility compares to other periods of volatility he’s seen throughout his nearly 40-year career and how he maintains a long-term approach amid market turbulence.
The views expressed are those of Diamond Hill as of March 2020 and are subject to change. These opinions are not intended to be a forecast of future events, a guarantee of results, or investment advice.
The S&P 500 Index is a market capitalization-weighted index focused on the large-cap segment of the market. The index is comprised of 500 of the top companies in leading industries in the U.S. economy.
As of February 29, 2020, Diamond Hill owned Chevron Corp. (equity). As of December 31, 2019, Diamond Hill owned Ford Motor Co. (debt).
This material is for informational purposes and is prepared by Diamond Hill Capital Management. The opinions expressed are as of the date of publication and are subject to change. These opinions are not intended to be a forecast of future events, a guarantee of future results, or investment advice. Reliance upon this information is at the sole discretion of the listener. Investing involves risk including the possible loss of principal.
Volatility and Opportunity in High Yield
Fixed Income CIO Bill Zox and PM John McClain share their thoughts on recent activity in the high yield markets, the government’s response to market volatility and impacts of the ongoing oil price war.
The views expressed are those of Diamond Hill as of March 2020 and are subject to change. These opinions are not intended to be a forecast of future events, a guarantee of results, or investment advice.
The ICE BofA U.S. High Yield Index tracks the performance of the U.S. dollar denominated below investment grade corporate debt publicly issued in the U.S. domestic market. The index data referenced herein is the property of ICE Data Indices, LLC, its affiliates ("ICE Data") and/or its third party suppliers and has been licensed for use by Diamond Hill Capital Management, Inc. ICE Data and its third party suppliers accept no liability in connection with its use. See diamond-hill.com for a full copy of the disclaimer.
This index does not incur fees and expenses (which would lower the return) and is not available for direct investment.
This material is for informational purposes and is prepared by Diamond Hill Capital Management. The opinions expressed are as of the date of publication and are subject to change. These opinions are not intended to be a forecast of future events, a guarantee of future results, or investment advice. Reliance upon this information is at the sole discretion of the listener. Investing involves risk including the possible loss of principal.
March 2020 Oil Update
Energy Analyst Blake Haxton, CFA, and Portfolio Manager John McClain, CFA, discuss how Saudi Arabia and Russia sent oil prices tumbling after Friday’s OPEC meeting and what this means for equity and high yield markets already reeling from COVID-19.
The views expressed are those of Diamond Hill as of March 2020 and are subject to change. These opinions are not intended to be a forecast of future events, a guarantee of results, or investment advice.
This material is for informational purposes and is prepared by Diamond Hill Capital Management. The opinions expressed are as of the date of publication and are subject to change. These opinions are not intended to be a forecast of future events, a guarantee of future results, or investment advice. Reliance upon this information is at the sole discretion of the listener. Investing involves risk including the possible loss of principal.
How Is COVID-19 Impacting High Yield Markets?
Fixed Income CIO Bill Zox, CFA, breaks down the Fed’s reaction to market volatility caused by COVID-19 and discusses how our fixed income team is positioned to take advantage of ongoing volatility in the market.
The views expressed are those of Diamond Hill as of March 2020 and are subject to change. These opinions are not intended to be a forecast of future events, a guarantee of results, or investment advice.
The ICE BofA U.S. High Yield Index tracks the performance of the U.S. dollar denominated below investment grade corporate debt publicly issued in the U.S. domestic market. The index data referenced herein is the property of ICE Data Indices, LLC, its affiliates (“ICE Data”) and/or its third party suppliers and has been licensed for use by Diamond Hill Capital Management, Inc. ICE Data and its third party suppliers accept no liability in connection with its use. See diamond-hill.com for a full copy of the disclaimer.
The S&P 500 Index is a market capitalization-weighted index focused on the large-cap segment of the market. The index is comprised of 500 of the top companies in leading industries in the U.S. economy.
These indices do not incur fees and expenses (which would lower the return) and are not available for direct investment.
This material is for informational purposes and is prepared by Diamond Hill Capital Management. The opinions expressed are as of the date of publication and are subject to change. These opinions are not intended to be a forecast of future events, a guarantee of future results, or investment advice. Reliance upon this information is at the sole discretion of the listener. Investing involves risk including the possible loss of principal.
February 2020 Fixed Income Market Update
Portfolio Manager John McClain, CFA, discusses how market instability caused by COVID-19 is impacting our fixed income portfolios and where he’s finding opportunities amid the chaos.
The views expressed are those of Diamond Hill as of February 2020 and are subject to change. These opinions are not intended to be a forecast of future events, a guarantee of results, or investment advice.
As of January 31, 2020 Diamond Hill owned Citigroup, Inc. (equity) and United Airlines Holdings, Inc. (equity). As of November 30, 2019 Diamond Hill owned Citigroup, Inc. (debt) and United Airlines Holdings, Inc. (debt).
The ICE BofA U.S. High Yield Index tracks the performance of the U.S. dollar denominated below investment grade corporate debt publicly issued in the U.S. domestic market. The index data referenced herein is the property of ICE Data Indices, LLC, its affiliates (“ICE Data”) and/or its third party suppliers and has been licensed for use by Diamond Hill Capital Management, Inc. ICE Data and its third party suppliers accept no liability in connection with its use. See diamond-hill.com for a full copy of the disclaimer.
The S&P 500 Index is a market capitalization-weighted index focused on the large-cap segment of the market. The index is comprised of 500 of the top companies in leading industries in the U.S. economy.
These indices do not incur fees and expenses (which would lower the return) and are not available for direct investment.
This material is for informational purposes and is prepared by Diamond Hill Capital Management. The opinions expressed are as of the date of publication and are subject to change. These opinions are not intended to be a forecast of future events, a guarantee of future results, or investment advice. Reliance upon this information is at the sole discretion of the listener. Investing involves risk including the possible loss of principal.
February 2020 International Market Update
Portfolio Manager Grady Burkett, CFA, and Analyst Yiting Liu, CFA, share how the market sell-off caused by COVID-19 is impacting our International Strategy and how they’re opportunistically adding to holdings in the portfolio.
The views expressed are those of Diamond Hill as of February 2020 and are subject to change. These opinions are not intended to be a forecast of future events, a guarantee of results, or investment advice.
As of January 31, 2020 Diamond Hill owned Grupo Aeroportuario del Sureste SAB de CV - Class B (equity).
This material is for informational purposes and is prepared by Diamond Hill Capital Management. The opinions expressed are as of the date of publication and are subject to change. These opinions are not intended to be a forecast of future events, a guarantee of future results, or investment advice. Reliance upon this information is at the sole discretion of the listener. Investing involves risk including the possible loss of principal.
February 2020 Equity Market Update
CIO Austin Hawley, CFA, discusses how market volatility caused by COVID-19 is impacting our equity portfolios and the benefits of short-term volatility.
The views expressed are those of Diamond Hill as of February 2020 and are subject to change. These opinions are not intended to be a forecast of future events, a guarantee of results, or investment advice.
As of January 31, 2020 Diamond Hill owned Booking Holdings, Inc. (equity) and United Airlines Holdings, Inc. (equity). As of November 30, 2019 Diamond Hill owned United Airlines Holdings, Inc. (debt).
This material is for informational purposes and is prepared by Diamond Hill Capital Management. The opinions expressed are as of the date of publication and are subject to change. These opinions are not intended to be a forecast of future events, a guarantee of future results, or investment advice. Reliance upon this information is at the sole discretion of the listener. Investing involves risk including the possible loss of principal.
Flying High: An Overview of the Aviation Infrastructure Industry
Market dislocations caused by macro events, such as coronavirus, can provide long-term investment opportunities for patient investors. Analyst Yiting Liu, CFA explains how this has held true for our airport operator investments.
The views expressed are those of Diamond Hill as of February 2020 and are subject to change. These opinions are not intended to be a forecast of future events, a guarantee of results, or investment advice.
As of January 31, 2020 Diamond Hill owned Fairfax Financial Holdings Ltd. (equity) and Southeast Airport Group (equity).
This material is for informational purposes and is prepared by Diamond Hill Capital Management. The opinions expressed are as of the date of publication and are subject to change. These opinions are not intended to be a forecast of future events, a guarantee of future results, or investment advice. Reliance upon this information is at the sole discretion of the listener. Investing involves risk including the possible loss of principal.
Small Cap Portfolio Managers Chris Welch, CFA & Aaron Monroe, CFA
Chris Welch, CFA and Aaron Monroe, CFA discuss their first year as co-portfolio managers for the Small Cap strategy, sharing their thoughts on decision making in the co-PM structure, cash levels, and concentration within the portfolio.
The views expressed are those of Diamond Hill as of February 2020 and are subject to change. These opinions are not intended to be a forecast of future events, a guarantee of results, or investment advice.
As of January 31, 2020 Diamond Hill owned Enstar Group Ltd. (equity), WESCO International, Inc. (equity), Cal-Maine Foods, Inc. (equity), Microsoft Corp. (equity), Abbott Laboratories (equity), Live Nation Entertainment, Inc. (equity), Vail Resorts, Inc. (equity), Kirby Corp. (equity), Sterling Bancorp (equity). As of November 30, 2019 Diamond Hill owned Abbott Laboratories (debt) and Kirby Corp. (debt).
This material is for informational purposes and is prepared by Diamond Hill Capital Management. The opinions expressed are as of the date of publication and are subject to change. These opinions are not intended to be a forecast of future events, a guarantee of future results, or investment advice. Reliance upon this information is at the sole discretion of the listener. Investing involves risk including the possible loss of principal.
Discussion with Portfolio Manager Chuck Bath, CFA
Large Cap Portfolio Manager Chuck Bath discusses what drew him to the investment industry, the variety of market environments he's invested in, and how he sources investment ideas from our research team.
The views expressed are those of Diamond Hill as of February 2020 and are subject to change. These opinions are not intended to be a forecast of future events, a guarantee of results, or investment advice.
As of January 31, 2020 Diamond Hill owned Walt Disney Co. (The) (equity, long) and Parker-Hannifin Corp. (equity, long). As of November 30, 2019, Diamond Hill owned Walt Disney Co. (The) (debt).
For the fund's risks and prospectus please click here.
This material is for informational purposes and is prepared by Diamond Hill Capital Management. The opinions expressed are as of the date of publication and are subject to change. These opinions are not intended to be a forecast of future events, a guarantee of future results, or investment advice. Reliance upon this information is at the sole discretion of the listener. Investing involves risk including the possible loss of principal.
The Importance of Capacity Discipline
Alignment of interests with our clients is a critical component of our mission, and capacity discipline is a key element of this alignment. Portfolio Manager Chris Welch, CFA and Fixed Income CIO Bill Zox, CFA share why we believe capacity discipline is so important in both the equity and fixed income markets.
The views expressed are those of Diamond Hill as of January 2020 and are subject to change. These opinions are not intended to be a forecast of future events, a guarantee of results, or investment advice.
The Russell 1000 Index is an unmanaged market capitalization-weighted index comprised of the largest 1,000 companies by market capitalization in the Russell 3000 Index, which is comprised of the 3,000 largest U.S. companies by total market capitalization.
The ICE BofA ML U.S. High Yield Index tracks the performance of the U.S. dollar denominated below investment grade corporate debt publicly issued in the U.S. domestic market. These indices do not incur fees and expenses (which would lower the return) and are not available for direct investment.
This material is for informational purposes and is prepared by Diamond Hill Capital Management. The opinions expressed are as of the date of publication and are subject to change. These opinions are not intended to be a forecast of future events, a guarantee of future results, or investment advice. Reliance upon this information is at the sole discretion of the listener. Investing involves risk including the possible loss of principal.
Finding Opportunities Amid Brexit Uncertainty
Research Analyst Nate Palmer, CFA, CPA sits down to discuss WNS Holdings, a business process management company with significant exposure to the United Kingdom, and why we believe the company is an attractive investment opportunity despite ongoing Brexit uncertainty.
The views expressed are those of Diamond Hill as of January 2020 and are subject to change. These opinions are not intended to be a forecast of future events, a guarantee of results, or investment advice.
As of December 31, 2019 Diamond Hill owned WNS Holdings Ltd. (equity) and Cognizant Technology Solutions Corp. - Class A (equity).
For the fund's risks and prospectus please click here.
This material is for informational purposes and is prepared by Diamond Hill Capital Management. The opinions expressed are as of the date of publication and are subject to change. These opinions are not intended to be a forecast of future events, a guarantee of future results, or investment advice. Reliance upon this information is at the sole discretion of the listener. Investing involves risk including the possible loss of principal.
2019 Equity Market Recap
CIO Austin Hawley, CFA shares his thoughts on the strong equity market in 2019, the ongoing underperformance of value businesses, and how macroeconomic events, such as Fed policy and trade tensions with China, impacted our portfolios.
The views expressed are those of Diamond Hill as of January 2020 and are subject to change. These opinions are not intended to be a forecast of future events, a guarantee of results, or investment advice.
As of December 31, 2019 Diamond Hill owned Facebook, Inc. - Class A (equity), Microsoft Corp. (equity), Charles Schwab Corp. (The) (equity), KKR & Co., Inc. - Class A (equity), Citigroup, Inc. (equity), JPMorgan Chase & Co. (equity), Humana, Inc. (equity), BorgWarner, Inc. (equity), Parker-Hannifin Corp. (equity), Cimarex Energy Co. (equity), Devon Energy Corp. (equity), Chevron Corp. (equity), American International Group, Inc. (equity). As of October 31, 2019, Diamond Hill owned Apple, Inc. (debt), KKR & Co., Inc. - Class A (debt), Citigroup, Inc. (debt), JPMorgan Chase & Co. (debt), and Cimarex Energy Co. (debt).
This material is for informational purposes and is prepared by Diamond Hill Capital Management. The opinions expressed are as of the date of publication and are subject to change. These opinions are not intended to be a forecast of future events, a guarantee of future results, or investment advice. Reliance upon this information is at the sole discretion of the listener. Investing involves risk including the possible loss of principal.
2019 Fixed Income Market Recap
CIO – Fixed Income Bill Zox, CFA joins us to look back at 2019, discussing the trade war between the U.S. and China, Brexit, negative interest rates, the Federal Reserve, and the global economic slowdown.
The views expressed are those of Diamond Hill as of January 2020 and are subject to change. These opinions are not intended to be a forecast of future events, a guarantee of results, or investment advice.
This material is for informational purposes and is prepared by Diamond Hill Capital Management. The opinions expressed are as of the date of publication and are subject to change. These opinions are not intended to be a forecast of future events, a guarantee of future results, or investment advice. Reliance upon this information is at the sole discretion of the listener. Investing involves risk including the possible loss of principal.
2019 International Market Recap
Grady Burkett, CFA, portfolio manager for our Global and International strategies, sits down to share his views on geopolitical events and market trends we saw in 2019, such as the trade war with China, Brexit, and ESG investing, and how he believes these events will impact our portfolios in the future.
The views expressed are those of Diamond Hill as of January 2020 and are subject to change. These opinions are not intended to be a forecast of future events, a guarantee of results, or investment advice.
As of December 31, 2019 Diamond Hill owned GlaxoSmithKline plc (equity), Beazley plc (equity), Howden Joindery Group plc (equity), Banco Bilbao Vizcaya Argentaria SA (equity), Kasikornbank pcl - NVDR (Equity), Diageo plc (equity), Anheuser-Busch InBev SA/NV (equity), and Unilever NV (equity). As of October 31, 2019, Diamond Hill owned British Telecommunications plc (debt).
This material is for informational purposes and is prepared by Diamond Hill Capital Management. The opinions expressed are as of the date of publication and are subject to change. These opinions are not intended to be a forecast of future events, a guarantee of future results, or investment advice. Reliance upon this information is at the sole discretion of the listener. Investing involves risk including the possible loss of principal.
Untouchable Value: The Importance of Intangible Assets
Portfolio Manager Grady Burkett, CFA joins us to discuss valuing intangible assets and why they play such a crucial role in a company’s competitive position and growth prospects.
The views expressed are those of Diamond Hill as of January 2020 and are subject to change. These opinions are not intended to be a forecast of future events, a guarantee of results, or investment advice.
As of December 31, 2019 Diamond Hill owned Walmart (equity, short), Vivendi (equity) and Tencent (equity), LVMH Moet Hennessy Louis Vuitton SE (equity), Walt Disney Co. (The) (equity), GlaxoSmithKline plc (equity), Samsung Electronics Co. Ltd. (equity), Unilever NV (equity), and Novartis AG (equity). As of October 31, 2019, Diamond Hill owned Walt Disney Co. (The) (debt) and Apple, Inc. (debt).
This material is for informational purposes and is prepared by Diamond Hill Capital Management. The opinions expressed are as of the date of publication and are subject to change. These opinions are not intended to be a forecast of future events, a guarantee of future results, or investment advice. Reliance upon this information is at the sole discretion of the listener. Investing involves risk including the possible loss of principal.
Discussion with Bill Zox, CFA and John McClain, CFA
Portfolio Managers Bill Zox and John McClain join us to discuss the evolution of managing high-yield assets at Diamond Hill, the benefits of standing out by not fitting in, and share examples of how their long-term temperament and capacity discipline have played out in their strategies.
The views expressed are those of Diamond Hill as of December 2019 and are subject to change. These opinions are not intended to be a forecast of future events, a guarantee of results, or investment advice.
As of October 31, 2019, Diamond Hill owned AT&T, Inc. (debt).
For the fund's risks and prospectus please click here.
"Click here" will point to https://www.diamond-hill.com/documents/mutual-funds/
This material is for informational purposes and is prepared by Diamond Hill Capital Management. The opinions expressed are as of the date of publication and are subject to change. These opinions are not intended to be a forecast of future events, a guarantee of future results, or investment advice. Reliance upon this information is at the sole discretion of the listener. Investing involves risk including the possible loss of principal.
Laura O’Dell, CFA Discusses Genomics
Genomics, or the study of all the genes in a person’s body, has experienced tremendous growth over the past two decades, growth which is poised to continue. Our health care analyst Laura O’Dell joins us to discuss current players in the market, the challenges posed by the lack of universal regulations, and her view on the future of the industry.
This material is for informational purposes and is prepared by Diamond Hill Capital Management. The opinions expressed are as of the date of publication and are subject to change. These opinions are not intended to be a forecast of future events, a guarantee of future results, or investment advice. Reliance upon this information is at the sole discretion of the listener. Investing involves risk including the possible loss of principal.
Discussion With Portfolio Manager Chris Bingaman, CFA
Long-Short Fund Portfolio Manager Chris Bingaman joins us to discuss how the process for managing the Fund has been refined over its nearly 20-year history, the market environments we believe the Fund will perform well in, and how the Fund can fit into your overall asset allocation.
This material is for informational purposes and is prepared by Diamond Hill Capital Management. The opinions expressed are as of the date of publication and are subject to change. These opinions are not intended to be a forecast of future events, a guarantee of future results, or investment advice. Reliance upon this information is at the sole discretion of the listener. Investing involves risk including the possible loss of principal.
Discussion with CEO Heather Brilliant, CFA
Our CEO Heather Brilliant sits down to discuss changes and trends she’s seen in the industry over the past few years, the importance of cognitive diversity, and her involvement with the CFA Institute.
This material is for informational purposes and is prepared by Diamond Hill Capital Management. The opinions expressed are as of the date of publication and are subject to change. These opinions are not intended to be a forecast of future events, a guarantee of future results, or investment advice. Reliance upon this information is at the sole discretion of the listener. Investing involves risk including the possible loss of principal.
Kavi Shelar, CFA discusses Disney+
Disney+ has arrived. Our media analyst Kavi Shelar, CFA joins us to discuss consumer expectations for the service, its impact on other streaming services, and international growth opportunities.
This material is for informational purposes and is prepared by Diamond Hill Capital Management. The opinions expressed are as of the date of publication and are subject to change. These opinions are not intended to be a forecast of future events, a guarantee of future results, or investment advice. Reliance upon this information is at the sole discretion of the listener. Investing involves risk including the possible loss of principal.
As of September 30, 2019 Diamond Hill owned Apple, Inc. (equity, long) and Walt Disney Co. (The) (equity, long). As of July 31, 2019, Diamond Hill owned Apple, Inc. (debt).
Discussion with CIO Austin Hawley, CFA
CIO Austin Hawley joins us to discuss our research team, the benefits of our unique industry-specialist model, and why we view the analyst role as a career role at Diamond Hill.
This material is for informational purposes and is prepared by Diamond Hill Capital Management. The opinions expressed are as of the date of publication and are subject to change. These opinions are not intended to be a forecast of future events, a guarantee of future results, or investment advice. Reliance upon this information is at the sole discretion of the listener. Investing involves risk including the possible loss of principal.
As of September 30, 2019 Diamond Hill owned NVR, Inc. (equity).
How Consistent is Your Core?
Portfolio Managers Henry Song and Mark Jackson join us to discuss their consistent approach, why they believe predictability and style purity is key in your core allocation, and to provide an update on our Core Bond and Short Duration Total Return strategies.
This material is for informational purposes and is prepared by Diamond Hill Capital Management. The opinions expressed are as of the date of publication and are subject to change. These opinions are not intended to be a forecast of future events, a guarantee of future results, or investment advice. Reliance upon this information is at the sole discretion of the listener. Investing involves risk including the possible loss of principal.
For the fund's risks and prospectus please click here.
Examining Holdings with Chinese Exposure Amidst Market Turbulence
Despite negative headlines, we continue to find compelling investment opportunities in China. Research Analyst Yiting Liu explains the consumption power of China’s expanding urban middle class and why we are optimistic about our holdings with exposure to China.
This material is for informational purposes and is prepared by Diamond Hill Capital Management. The opinions expressed are as of the date of publication and are subject to change. These opinions are not intended to be a forecast of future events, a guarantee of future results, or investment advice. Reliance upon this information is at the sole discretion of the listener. Investing involves risk including the possible loss of principal.
As of August 31, 2019, Diamond Hill owned shares of Tencent Holdings Ltd, LVMH Moet Hennessy Louis Vuitton SE, and Shandong Weigo Group Medical Polymer Co. Ltd.