Diamond Hill Capital

Diamond Hill Capital

Last Update: 08-11-2016

Number of Stocks: 170
Number of New Stocks: 12

Total Value: $15,830 Mil
Q/Q Turnover: 7%

Countries: USA
Details: Top Buys | Top Sales | Top Holdings  Embed:

Diamond Hill Capital Watch

  • 7 Low P/E Stocks Gurus Are Buying

    Gurus are buying stocks that are trading with low price-earnings (P/E) ratios. Some are undervalued, according to the DCF calculator.

    CalAtlantic Group Inc. (CAA) with a market cap of $3.67 billion is trading with a P/E ratio of 12.43 and a price-sales (P/S) ratio of 0.62. According to the DCF calculator the stock has a fair value of $26.65 while trading at about $30.99; it is overpriced by 16%. The price has dropped by 22% during the last 12 months and is now 28.33% below its 52-week high and 14.91% above its 52-week low.


  • Kimberly-Clark Reports 3rd Quarter Results

    Kimberly-Clark Corp. (NYSE:KMB) released third-quarter results and updated its full-year outlook on Monday.

    The company is known for its portfolio of personal care brands that include Kleenex, Scott and Huggies. Founded in 1872 as a paper mill operator, the company has a long history and a presence in over 175 countries. The company, which is headquartered in Irving, Texas, went public in 1928. The company has three business segments, Personal Care, Consumer Tissue and K-C Professional.


  • Ford Is a Value Trap

    On the surface, Ford (NYSE:F) may look like a buy. Low price-earnings (P/E) ratio (5.8), decent margins, solid earnings and growth in book value make the stock pop up on a lot of value screens. In fact, big investors like Joel Greenblatt (Trades, Portfolio), Richard Pzena (Trades, Portfolio), Ken Fisher (Trades, Portfolio) and Diamond Hill Capital (Trades, Portfolio) all have sizable positions in Ford.

    After 2008, Ford was one of the few large companies that seemed to be on stable footing, especially in the auto industry. After a $30 billion decrease in revenue, the company has grown sales and regained profitability. Since 2009, Ford has earned over $55 billion after taxes, which is actually more than its current market capitalization.


  • Goodyear Tire Among Companies Trading With Very Low PE

    The following are companies with high and growing dividend yields that gurus are buying according to GuruFocus' All-in-One Screener.

    Goodyear Tire & Rubber Co. (GT) is trading with a P/E ratio of 2.90. According to the DCF calculator, the stock has a fair value of $14.34, while it is trading at about $11.77. That means it is overpriced by 152%. The price has risen by 12% during the last 12 months and is now 15.89% below its 52-week high and 19.24% above its 52-week low.


  • Diamond Hill Capital Pares More Than 4 Dozen Stakes in 4th Quarter

    Diamond Hill Capital (Trades, Portfolio) reduced more than four dozen of its holdings in the fourth quarter. Most of those reductions were modest, but some were substantial.

    Diamond Hill trimmed its stake in Prudential Financial Inc. (NYSE:PRU), a Newark, New Jersey-based financial services company, by more than 75%, selling 1,940,416 shares for an average price of $82.81 per share. The transaction had a -1.02% impact on Diamond Hill’s portfolio.


  • Stocks in the Spotlight

    Indexes had a nice rebound along with oil on Tuesday on renewed optimism that oil producers will look to curb production in the near future. The problem with this is twofold. For one, Saudi Arabia has been pretty adamant that it plans to keep producing oil in order to preserve market share. Second, more supply is set to hit the market, this time from Iran whose sanctions have been lifted. Neighboring Iraq is also set to increase its oil production from 3.8 million barrels per day to 4 million plus.

    The main stock to watch on Wednesday, Jan. 27, will be Apple (NASDAQ:AAPL) whose shares are down after hours after it reported better-than-expected earnings but missed analyst estimates on revenue. Earnings came in at $3.28 per share on $75.9 billion in revenue vs. analyst expectations of $3.23 per share on revenue of $76.54 billion.


  • NWQ Managers Reduces Stakes in Microsoft, MetLife and Teva Pharmaceutical

    NWQ Managers (Trades, Portfolio) reduced several of its stakes in the third quarter, some by more than 43%.

    It is a value-oriented money management firm with several funds products and more than $54 billion under management. The firm does bottom-up research on companies and industries focusing on qualitative factors such as restructuring, management strength, shareholder orientation and the ability to capitalize on improving industry fundamentals.


  • Diamond Hill Adds to Stake in Automotive Parts Company

    Diamond Hill Capital (Trades, Portfolio)’s bottom-up investment approach produces some good returns via its Small Cap Fund. The Fund posted returns of 4.6% last year, but its best year of late was 2013, when its returns were nearly 40%.

    Diamond Hill’s most significant third-quarter transaction was the addition of 4,592,212 shares to its stake in BorgWarner Inc. (NYSE:BWA), an Auburn Hills, Mich.-based supplier of automotive components and parts, for an average price of $47.22 per share. The transaction had a 1.32% impact on Diamond Hill’s portfolio.


  • Interview: Diamond Hill Managers on Their Process, View on Valeant

    Diamond Hill Capital (Trades, Portfolio) Management follows an intrinsic value-based investing philosophy with a long-term perspective. With this approach, Diamond Hill’s Select (all-cap) strategy has had an average annual return of 7.76% since its inception in 2005, outperforming the benchmark Russell 3000 Index, which had average annual return of 6.88%.

    The Select Fund is managed by Rick Snowdon and Austin Hawley, who joined Diamond Hill in 2007 and 2008. Both managers recently took the time to answer investing questions from GuruFocus about topics ranging from their investing philosophy, to their view on embattled Valeant Pharmaceuticals (NYSE:VRX), the fund’s fourth-largest holding as of the third quarter.


  • Diamond Hill Capital Buys Tegna, Sells Gannett and EOG Resources

    Diamond Hill Capital (Trades, Portfolio) Management is a registered investment adviser based in Columbus, Ohio. Diamond Hill manages a portfolio composed of 152 stocks with a total value of $15,053 million, and the following are the largest trades during the second quarter of 2015.

    It bought 5,431,323 shares of Tegna Inc. (TGNA) with an impact of 1.16% on the portfolio.


  • Diamond Hill Capital Sells Portion of Stake in Steiner Leisure

    Columbus, Ohio-based Diamond Hill Capital (Trades, Portfolio) Management reduced its stake in Steiner Leisure Ltd. (NASDAQ:STNR), a Coral Gables, Fla.-based provider of spa services, maker of spa-related products and accredited educator of students wanting to learn the skills to be a spa professional, by nearly 7% on Sept. 30.

    Diamond Hill Capital (Trades, Portfolio) Management sold 87,979 shares of Steiner Leisure for $63.18 per share. The sale had a -0.04% impact on Diamond Hill’s portfolio.


  • David Tepper's Stocks Trading Below the Peter Lynch Earnings Line

    David Tepper (Trades, Portfolio), a distressed-debt specialist, was once considered to be the hottest investor on Wall Street. His portfolio is now composed of 35 stocks; the following are the ones that are trading below the Peter Lynch earnings line.

    Goodyear Tire & Rubber Co. (GT) is trading at $31.78, and the Peter Lynch earnings line gives the stock a fair price of $147.6, giving the stock a margin of safety of 78%.


  • Diamond Hill Capital to Join GuruFocus for Q&A

    We’re pleased to announce that Rick Snowdon and Austin Hawley of Diamond Hill Capital Management will join GuruFocus for a Q&A in a few weeks. Have questions about their investing philosophies or top holdings? Simply post them in the comments box below.

    Snowdon and Hawley manage the Select Fund at Diamond Hill, focusing on long-term capital appreciation by investing in companies priced below intrinsic value. The fund follows a concentrated strategy and invests across a variety of market caps but typically focuses on companies with a capitalization of at least $500 million.


  • Top Insider Buys of the Week

    The All-In-One Guru Screener can be used to find insider buys over the last week by clicking on the Insiders tab and changing the settings for All Insider Buying to “$1,000,000+” and duration to "August 2015."

    According to the above filters, the following are the recent buys from company insiders over the past week.


  • Altria’s Impressive Dividend Growth Pays High, Consistent Dividends

    Altria Group Inc. (NYSE:MO) recently raised its quarterly dividend to $0.565 from $0.52 a share. The stock now yields 4.2% if the share price stays at current levels. The hike reflects Altria´s policy of returning value to shareholders and helps to continue with a good dividend growth, now at 46 consecutive years.

    Behind the Growth


  • Global Energy: Adapting to New Realities – Diamond Hill Capital

    The recent slide in oil prices is symptomatic of large fundamental shifts taking place across the energy sector. The current volatility is nothing new to oil markets as their self-correcting nature has frequently resulted in a sequence of deep boom and bust cycles. While we can anticipate and prepare for these cycles, much like with earthquakes, the timing and consequences can still be surprising. In times like these, maintaining a long-term perspective is essential to place current events in the proper context. Occasionally, by making rough sense of the past we can gain credible clues on the path forward. However, most of the time, we simply cannot forecast with any reliable degree of accuracy the price of oil. To compensate for these uncertainties, we rely heavily on the concept of margin of safety. We can apply a margin of safety not only in the price we pay, but also in the strategic positioning of the businesses we own. In this piece, we examine the fundamental shifts taking place in the energy sector and the companies we believe are best positioned to adapt to these new realities.

    Structural change


  • Scepter Holdings Buys Big Stake in VeriSign

    At the end of the second quarter of 2015, the hedge fund Scepter Holdings Inc. reported a total value of its portfolio of $474 million, which decreased by 13.41% over the previous quarter.

    During Q2 2015, the hedge fund bought 23 new stocks and increased four of its stakes. The following are the most heavily weighted buys during the quarter.


  • Zweig Advisers' Top Buys in the Second Quarter

    At the end of the second quarter of 2015, the hedge fund Zweig Advisers reported a total value of its portfolio of $696.8 million, which declined 5.43% over the previous quarter.

    During Q2 2015, the hedge fund bought eight new stocks and increased seven of its stakes. The following are the most heavily weighted buys during the quarter.


  • Aerospace And Defense's Stocks With Lowest P/E

    Recently, GuruFocus introduced a new page that summarizes each industry’s ratios. According to that page, the Aerospace and Defense industry has a median P/E of 20.90 and the following are the biggest companies (based on market cap) that are trading with the lowest P/E ratio.

    United Technologies Corp (UTX)


  • A Gas Company Expanding its Portfolio

    In a previous article, we determined that Praxair Inc. (NYSE:PX)´s intrinsic value was above the trading price by 11%, so according to our model and assumptions, the stock seems to be undervalued and subject to a potential “buy” recommendation.

    Manning & Napier Advisors, Inc has recently initiated a new position on Praxair with 30,886 shares, so in this article, let´s take a look at the company´s fundamentals.


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