Diamond Hill Capital

Diamond Hill Capital

Last Update: 02-10-2017

Number of Stocks: 169
Number of New Stocks: 14

Total Value: $17,228 Mil
Q/Q Turnover: 7%

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

Diamond Hill Capital Watch

  • Mario Gabelli’s Top 3 New Holdings for the 4th Quarter

    Mario Gabelli (Trades, Portfolio), founder, chairman and CEO of GAMCO Investors, gained 58 new holdings in the final quarter of 2016. His top three new holdings are Brocade Communications Systems Inc. (NASDAQ:BRCD), Endurance Specialty Holdings Ltd. (NYSE:ENH) and Liberty Expedia Holdings Inc. (NASDAQ:LEXEA).


    Gabelli founded his firm in 1976 in Rye, New York. With a 15-member investment team and over 40 analysts, the firm utilizes fundamental, bottom-up research and a consistent investment process to generate superior risk-adjusted returns. As of Sept. 30, 2016, the firm had $39.9 billion in assets under management.

      


  • 3 Stocks That Have Gotten Cheaper in Market's All-Time High

    The Dow, Nasdaq and the S&P 500 stock index soared to record highs this month, fueled by a confluence of Friday’s job report that showed an increase in U.S. wages, a spike in energy prices, a Fed meeting that allayed worry it would raise interest rates and investor optimism that President Donald Trump will improve the economy.


    Markets this trading week completed a two-month run since the U.S. election on Nov. 8 that has included a string of new records. In the past month, Nasdaq rose 3.4%, reaching a record peak Thursday; the S&P 500 gained 2.59% to a new intraday high Friday; and the Dow climbed 3.8%, coming within one point of 20,000 for the first time Friday.

      


  • Discounted Stocks: Apple, Accenture, Aaron's

    According to GuruFocus' All-in-One Screener, several gurus are focusing on stocks whose Peter Lynch fair values are below the current prices.


    Aaron's Inc. (AAN) is trading at about $32 per share, and the Peter Lynch value gives the stock a fair price of $28.6. It is overpriced by 14%.

      


  • Bernard Horn Gains 2 Holdings, Cuts 3 Others

    Bernard Horn (Trades, Portfolio) of the Polaris Global Value Fund purchased two new holdings and exited three others in the third quarter.


    Horn founded Polaris Capital Management in 1995. The firm invests in discounted but high-quality stocks in developed and emerging markets. All trades are managed on a team basis using a consistent process and approach. The investment philosophy is based on two basic beliefs: country and industry are important factors in price, and global market fluctuations produce mispriced stocks.

      


  • Murray Stahl Exits Dreamworks, Buys AMC Networks

    Murray Stahl (Trades, Portfolio) is the chairman of Horizon Asset Management Inc. He is also director of research and co-portfolio manager of the Small Cap Opportunities Fund and the Paradigm Fund. During the third quarter the guru’s largest trades were the following:


    He closed his stake in Dreamworks Animation SKG Inc. (DWA) with an impact of -5.02% on the portfolio.

      


  • Joel Greenblatt’s Top 3 New Holdings for the 3rd Quarter

    Gotham Asset Management’s Joel Greenblatt (Trades, Portfolio) purchased 219 new positions in the third quarter. His top three new holdings are Danaher Corp. (NYSE:DHR), WestRock Co. (NYSE:WRK) and Kimberly-Clark (NYSE:KMB).


    The guru bought 596,095 shares in Danaher for an average price of $79.95 per share. The transaction had an impact of 0.6% on his portfolio.

      


  • Abbott Laboratories CEO Buys Stock in Company

    Miles White (Insider Trades), CEO and chairman of Abbott Laboratories (ABT), purchased 369,950 shares in the company in five transations on Nov. 10. The per share price ranged from $40.45 to $40.67.


    Abbott Laboratories is a health care company that provides generic branded pharmaceuticals. The company has a market cap of $57.62 billion.

      


  • 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.

      


  • Dover's Current Stock Price Represents Good Entry Point

    In this article, let's take a look at Dover Corp (NYSE:DOV), a $10.92 billion market cap company, which is a company which manufactures a broad range of specialized industrial products and sophisticated manufacturing equipment.


    Business Model

      


  • Diamond Hill Capital Keeps Buying Whirlpool

    Established in 2000, Diamond Hill Capital (Trades, Portfolio) is a registered investment adviser based in Columbus, Ohio. It is independent and publicly owned, listed on NASDAQ (ticker symbol: DHIL) and included in the Russell 2000 Index. Diamond Hill manages seven traditional and alternative equity strategies, available in separately managed accounts, mutual funds and private investment funds.


    The company’s investment process is predominantly bottom up, beginning with fundamental analysis of a company's profitability and market position, financial and competitive position, management quality, valuation, and growth components of valuation. Then a top-down analysis is also conducted, and investment team insight and experience is then applied to further narrow the universe of investable ideas for deeper analysis including the creation of a financial model.

      


  • Diamond Hill Capital Adds Stake in Google to Portfolio

    Diamond Hill Capital (Trades, Portfolio) has been quite successful serving its client base, which includes both businesses and individuals. Its return of 4.6% last year was below average for Diamond Hill; double-digit returns are more common in its asset management for others.

    In its own portfolio, Diamond Hill bought and sold stock in dozens of companies in the first quarter.  


  • Cimarex Energy Had One of the Highest Growth Rates Among Petroleum Companies

    In this article, let's take a look at Cimarex Energy Co. (NYSE:XEC), a $12.32 billion market cap company, which is an independent oil and gas exploration and production company which has operations in the Mid-Continent, the Permian Basin and the Gulf of Mexico.


    Return & Hedge Funds Positions

      


  • Want to Go in Kimberly-Clark Corporation?

    In this article, let's take a look at Kimberly-Clark Corporation (NYSE:KMB), a $39.44 billion market cap company, which is best known for brands such as Kleenex, Scott, Huggies and Kotex.


    Extensive Reach

      


  • Mattel Is losing Ground Due to New Trends and Higher Competition

    In this article, let's take a look at Mattel Inc.(NASDAQ:MAT), a $7.65 billion market cap toy company whose successful brands and products include Barbie dolls, Fisher-Price toys, American Girl dolls and books and Hot Wheels.


    Current patterns

      


  • A Look at McDonald´s Performance

    In this article, let's take a look at McDonald's Corp. (NYSE:MCD), a $93.19 billion market cap company, which ist he largest fast-food restaurant company in the world, with about 35,000 restaurants in 119 countries.


    Revenues, Earnings, Margins and Profitability

      


  • Diamond Hill Select Fund Commentary: Post Holdings, Vantiv, EOG Resources

    We took advantage of the stock market’s over-reaction to food products company Post Holdings, Inc.’s (POST) weak quarterly results to initiate a position in the Fund. We also initiated a position in Vantiv, Inc. (VNTV) as the company’s shares traded lower after a mild third quarter disappointment in the financial institution segment of its business. The shares then rebounded during the fourth quarter as investors focused on the long-term growth story and attractive valuation. We believe Vantiv has an attractive growth profile and should continue to generate high single-digit organic revenue growth and mid-teens earnings per share growth.


    We eliminated our position in oil and gas exploration and production company EOG Resources, Inc. (EOG) as a result of what we believe to be structural changes in the competitive dynamics of the global oil industry and subsequent change to our estimate of intrinsic value. A combination of domestic oil production growth, an increase in the supply of oil from Libya, weakening demand trends in Europe and Asia, and OPEC’s unwillingness to reduce output to mitigate anticipated over-supply led to a significant decline in oil prices as well as a decline in the oil price outlook over the next few years.

      


  • Diamond Hill Capital Large Cap Commentary: Capital One, Eastman Chemical

    We initiated new positions in two companies. Credit services company Capital One Financial Corp. (NYSE:COF) is one of the most recognized brands in financial services and the 8th largest bank in the U.S. The firm has national scale as a top five credit card and auto lender and a significant traditional branch banking presence with commercial lending capabilities in a number of large U.S. markets. We expect Capital One’s core credit card and auto loan segment to experience continued loan growth as a function of an improving economy, an improving job market and increasing confidence in consumer spending decisions. Capital One also benefits from the continuing shift in favor of electronic payments (i.e., ApplePay) versus cash and check. We believe Capital One will continue to generate healthy returns in a business model that is capital generative and the market will reward Capital One for its earnings power and its management’s new focus on returning capital to shareholders versus acquisitions.


    We also initiated a position in specialty chemical company Eastman Chemical Co. (NYSE:EMN) when concerns about the company’s Fibers business led to a decline in the shares which we believe provided an attractive entry point. The company continues to add higher-margin, strong cash flow-generating businesses to its portfolio while the company is much less exposed to petrochemical earnings than its peers Dow Chemical Co. (NYSE:DOW) and LyondellBasell Industries N.V. (NYSE:LYB).

      


  • Diamond Hill Capital Comments On New Positions

    We initiated a position in financial holding company BOK Financial Corp. (NASDAQ:BOKF), a high-quality, Oklahoma-based bank that we have followed for years. BOK Financial has a great franchise, and due to large insider ownership, its shares are infrequently available at an attractive discount to intrinsic value. The shares sold off after oil prices declined reflecting BOK’s larger-than-peer exposure to the energy sector. We believe the market was penalizing the shares more than justified and not respecting the company’s multi-decade track record of sound underwriting in the energy sector.


    We initiated a position in pest control services company Rollins, Inc. (NYSE:ROL), one of the largest residential and commercial pest extermination businesses in the country. We view Rollins as a very high quality business run by a strong management team. During the broader market selloff in October, the stock declined to a discount to our estimate of intrinsic value. The stock appreciated and quickly reached our estimate of intrinsic value in a short period of time, so we exited our position.

      


  • Diamond Hill Capital Comments on Nationstar Mortgage Holdings Inc

    The largest detractors within financials were First Niagara Financial Group, Inc. and Nationstar Mortgage Holdings, Inc (NSM). Nationstar is a non-bank mortgage servicer whose primary competitor, Ocwen Financial Corp., has encountered great regulatory scrutiny. We believe Nationstar may ultimately benefit from Ocwen’s problems, while thus far the market is skeptical.

    From Diamond Hill Capital (Trades, Portfolio)’s Small Cap Fund 2014 Portfolio Commentary.  


  • Diamond Hill Small Cap Fund 2014 Portfolio Commentary

    The Diamond Hill Small Cap Fund returned 4.86% (Class I) in 2014 compared to a 4.89% return for the Russell 2000 Index. In 2014, the small cap market’s best performing sectors were healthcare, utilities, and consumer staples. These sectors tend to be seen as relatively defensive and associated with “safe havens.” Utilities, in particular, also tend to do well when interest rates fall as many view regulated utilities as the most bond-like of equity investments. Government interest rates declined during the year, with the 10-year Treasury finishing below 2.2%, down from levels around 3% at the beginning of the year. Energy was by far the worst performing sector in 2014, as crude oil prices declined nearly 50%. The Fund’s underperformance can largely be attributed to having a larger allocation to energy stocks and a smaller allocation to healthcare stocks than the Index. In addition, while stock selection was generally good, the consumer staples sector was an exception.


    The Fund’s financial holdings were the largest contributors in 2014. The Fund averaged roughly 27% of net assets invested in this sector, with nearly half of that amount in insurance companies. Banks and real estate investment trusts (REITs) each comprised about a fifth of the financial sector holdings. Winthrop Realty Trust, Inc. (FUR) announced a liquidation plan to sell all its assets and distribute the proceeds to shareholders within a two-year period. Thus far, asset sales have come in a bit above the mid-point of ranges that the company has used in its internal estimate of net asset value. In total, these developments led to a 65% total return for the stock in the year. Insurance or reinsurance companies including HCC Insurance Holdings, Inc. (HCC), Navigators Group, Inc. (NAVG), Alleghany Corp. (Y), Enstar Group Ltd. (ESGR), American Equity Investment Life Holding Co. (AEL), and Reinsurance Group of America (RGA) all experienced total returns between 10% and 18.5%. The largest detractors within financials were First Niagara Financial Group, Inc. (FNFG) and Nationstar Mortgage Holdings, Inc (NSM). Nationstar is a non-bank mortgage servicer whose primary competitor, Ocwen Financial Corp., has encountered great regulatory scrutiny. We believe Nationstar may ultimately benefit from Ocwen’s problems, while thus far the market is skeptical.

      


  • Diamond Hill Capital Q4 2014 Market Review

    Driven by an expanding economy, growing corporate profits, and persistently low interest rates, the broad U.S. equity market posted its sixth consecutive annual gain in 2014. The S&P 500 Index finished the year with a 13.7% total return (including dividends), and the Federal Reserve signaled its belief in the economy’s ability to grow without assistance by concluding its bond purchasing program known as Quantitative Easing, or QE, in October 2014. Although investors expect the Fed to raise interest rates sometime in 2015, its overall monetary policy remains accommodative, encouraging equity investors.


    In the U.S., unemployment fell as a result of the best hiring stretch since the late 1990s. The U.S. consumer benefitted from a steep decline in gasoline prices to the lowest levels in five years, adding more buying power beyond modest wage gains. The sharp decline in the price of oil over the past few months is likely to improve household budgets. Globally, central banks remained extraordinarily accommodative in an attempt to provide a backdrop for increased economic growth. Europe, which has been a clear economic laggard over the past few years, was still only showing modest signs of improvement. Meanwhile, China and India continued to grow at healthy mid-single digit rates, but many other emerging economies around the world are seeing decelerating growth rates. The U.S. dollar ended the year strong relative to other currencies as investors were confident that stronger economic growth in the U.S. will lead the Fed to raise rates in 2015 for the first time since before the financial crisis.

      


  • Diamond Hill Capital Comments on EOG Resources Inc

    We eliminated our position in oil and gas exploration and production company EOG Resources, Inc. (EOG) as a result of what we believe to be structural changes in the competitive dynamics of the global oil industry and subsequent change to our estimate of intrinsic value. A combination of domestic oil production growth, an increase in the supply of oil from Libya, weakening demand trends in Europe and Asia, and OPEC’s unwillingness to reduce output to mitigate anticipated over-supply led to a significant decline in oil prices as well as a decline in the oil price outlook over the next few years.

    From Diamond Hill Capital (Trades, Portfolio)’s Select Fund Q4 2014 Commentary.  


  • Diamond Hill Capital Comments on Vantiv Inc

    We also initiated a position in Vantiv, Inc. (VNTV) as the company’s shares traded lower after a mild third quarter disappointment in the financial institution segment of its business. The shares then rebounded during the fourth quarter as investors focused on the long-term growth story and attractive valuation. We believe Vantiv has an attractive growth profile and should continue to generate high single digit organic revenue growth and mid-teens earnings per share growth.

    From Diamond Hill Capital (Trades, Portfolio)’s Select Fund Q4 2014 Commentary.  


  • Diamond Hill Capital Comments on Alere Inc

    Diagnostic systems provider Alere, Inc. (ALR) declined after installing a new CEO during the quarter, while weathering an unsolicited attempt by the previous CEO to take the company private. Subsequently, the company announced that it would sell its Health Management business in a first sign of the implementation of a new agenda focused on asset sales and debt paydown.

    From Diamond Hill Capital (Trades, Portfolio)’s Select Fund Q4 2014 Commentary.  


  • Diamond Hill Capital Comments on Hub Group Inc

    Freight transportation management company Hub Group, Inc. (HUBG) declined after it reported weak third quarter earnings. The company also lowered guidance for the remainder of the year due to poor service levels from its rail partners, as well as a legal settlement with drayage drivers in California. We believe rail service levels should begin to improve in 2015 as railroads are currently making investments to add additional capacity.

    From Diamond Hill Capital (Trades, Portfolio)’s Select Fund Q4 2014 Commentary.  


  • Diamond Hill Capital Comments on International Business Machines Corp

    Diversified information technology company International Business Machines Corp. (IBM) declined after the company reported disappointing third quarter earnings and management indicated that it would fail to meet the 2015 earnings guidance detailed in the company’s much-publicized 2015 Roadmap.

    From Diamond Hill Capital (Trades, Portfolio)’s Select Fund Q4 2014 Commentary.  


  • Diamond Hill Capital Comments on Willis Group Holdings PLC

    Insurance brokerage firm Willis Group Holdings PLC (WSH) reported worse than anticipated third quarter earnings with organic revenue growth in the company’s Global segment hurt by a soft reinsurance market and tough comparisons in the prior year period. However, expenses stabilized and the company appears poised to show meaningful margin improvement over the next several quarters.

    From Diamond Hill Capital (Trades, Portfolio)’s Select Fund Q4 2014 Commentary.  


  • Diamond Hill Select Fund Q4 2014 Commentary

    The Fund increased 6.17% (Class I) during the quarter, compared to a 5.24% increase in the Russell 3000 Index.


    The Fund’s holdings in the consumer discretionary, financials, and health care sectors provided the largest contributions to absolute return, while holdings in the energy sector detracted from return.

      


  • Diamond Hill Capital Comments on Trinity Industries Inc

    Railroad service company Trinity Industries, Inc. (TRN) declined, as the railcar segment is heavily influenced by demand for tank cars to transport oil. Weaker oil pricing puts this demand at risk. The company also suffered a setback in a large lawsuit.

    From Diamond Hill Capital (Trades, Portfolio)’s Small Cap Fund Q4 2014 Commentary.  


  • Diamond Hill Capital Comments on Aircastle Ltd

    Aircraft rental and leasing company Aircastle Ltd. (AYR) rose after reporting strong third quarter earnings, as core leasing revenue increased and cash interest margins improved due to lower financing costs. The company also increased its quarterly dividend and announced a share repurchase authorization.

    From Diamond Hill Capital (Trades, Portfolio)’s Small Cap Fund Q4 2014 Commentary.  


  • Diamond Hill Small Cap Fund Q4 2014 Commentary

    The Fund increased 2.84% (Class I) during the quarter, compared to a 9.73% increase in the Russell 2000 Index.


    The Fund’s holdings in the financials and consumer discretionary sectors provided the largest contributions to absolute return, while holdings in the energy sector detracted from return.

      


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