Investment management firm Diamond Hill Capital Management was formed in 200 and currently operates four long-only equity funds, three alternative equity funds and one fixed income fund, with a total of $11 billion in assets under management as of Sept. 30, 2013. The firm’s investment philosophy centers on Graham-Buffett principles.
In the third quarter, managers at Diamond Hill bought seven new stocks, the largest positions of which were in: DST Systems Inc. (DST, Financial), Infinity Property and Casualty Corp. (IPCC, Financial), BB&T Corp. (BBT, Financial), Air Methods Corp. (AIRM, Financial) and U.S. Bancorp (USB, Financial).
DST Systems Inc. (DST)
Diamond Hill in the third quarter bought 377,610 shares of DST Systems when the price averaged $72. It has since traded up 18% to around $84.93 on Tuesday afternoon.
DST Systems is a company that provides service solutions to the asset management, brokerage, retirement, insurance, health care and other industries.
The company has over the past five years growth per-share revenue at an annual rate of 8.5%, EBITDA at a rate of 0.1% and book value growth at 46%.
Its stock price is currently neat a 10-year high, and its P/S ratio at 1.46% is close to a five-year high. It also has a P/E of 13.1 and P/B of 3.1.
DST Systems’ 10-year revenue and earnings history:
Infinity Property and Casualty Corp. (IPCC)
Diamond Hill in the third quarter bought 44,938 shares of Infinity Property and Casualty Corp. at the average price of $63. The price since increased about 11% to $70.46 per share on Tuesday afternoon.
Infinity Property and Casualty Corp. is a holding company with auto insurance subsidiaries, and has an $811.6 million market cap.
The company over the past five years grew per-share revenue at a rate of 15.5% and book value at 12.4%. EBITDA, meanwhile, declined at a rate of 8.7%.
The company’s market price is currently near a 10-year high, and it trades with a P/E of 28.3, P/B of 1.3 and P/S of 0.6.
Infinity Property and Casualty 10-year revenue and earnings history:
BB&T Corp. (BB&T)
Diamond Hill in the third quarter purchased 10,911 shares of BB&T at the average price of about $35. The price has since slipped 1% to $34.54.
BB&T is a community banking company and one of the largest financial services holdings companies in the U.S., with $182.7 billion in assets as of June 30, 2013.
Over the past five years the company grew per-share EBITDA at an annual rate of 3.6% and book value at a rate of 2.4%. Revenue declined at a rate of 0.9% over the same period.
BB&T’s stock price is currently near a five-year high, and its P/S ratio, at 2.52, is also near a five-year high. The company has a P/E of 14.3 and P/B of 1.3.
BB&T 10-year revenue and earnings history:
Air Methods Corp. (AIRM)
Diamond Hill in the third quarter bought 8,635 shares of Air Methods Corp. (AIRM) when the price averaged $38. The price since rose about 15% to $44.16 per share on Tuesday afternoon.
Air Methods is an air medical transport company formed in 1980 and based in Englewood, Colo., with operations in 48 states from Alaska to Key West.
The company over the past five years has had per-share annual growth rates of 12.9% for revenue, 41.3% for EBITDA and 17.1% for book value.
The company’s current price, P/E at 27.7 and P/S at 2.06, are all close to their respective 10-year highs. The company also has a P/B of 5.4.
Air Methods 10-year revenue and earnings history:
U.S. Bancorp (USB)
Diamond Hill purchased 6,400 shares of U.S. Bancorp in the third quarter when the price averaged $37 per share. It has since increased about 2% to $37.83 on Tuesday afternoon.
U.S. Bancorp is the parent company of the fifth largest commercial U.S. bank, U.S. bank, and has $321 million in assets.
The company has five-year per-share annual growth rates of 6.1% for revenue, 19.2% for EBITDA, 9.2% for free cash flow and 14% for book value.
The market price of U.S. Bancorp is close to a 10-year high, and its P/S at 3.57 is close to a five-year high. It also has a P/E of 12.8, P/B of 2 and P/S of 3.6.
The company’s 10-year revenue and earnings history:
Go to Diamond Hill’s portfolio here to see more of their stocks. Also check out the Undervalued Stocks, Top Growth Companies and High Yield stocks of Diamond Hill Capital.
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In the third quarter, managers at Diamond Hill bought seven new stocks, the largest positions of which were in: DST Systems Inc. (DST, Financial), Infinity Property and Casualty Corp. (IPCC, Financial), BB&T Corp. (BBT, Financial), Air Methods Corp. (AIRM, Financial) and U.S. Bancorp (USB, Financial).
DST Systems Inc. (DST)
Diamond Hill in the third quarter bought 377,610 shares of DST Systems when the price averaged $72. It has since traded up 18% to around $84.93 on Tuesday afternoon.
DST Systems is a company that provides service solutions to the asset management, brokerage, retirement, insurance, health care and other industries.
The company has over the past five years growth per-share revenue at an annual rate of 8.5%, EBITDA at a rate of 0.1% and book value growth at 46%.
Its stock price is currently neat a 10-year high, and its P/S ratio at 1.46% is close to a five-year high. It also has a P/E of 13.1 and P/B of 3.1.
DST Systems’ 10-year revenue and earnings history:
Infinity Property and Casualty Corp. (IPCC)
Diamond Hill in the third quarter bought 44,938 shares of Infinity Property and Casualty Corp. at the average price of $63. The price since increased about 11% to $70.46 per share on Tuesday afternoon.
Infinity Property and Casualty Corp. is a holding company with auto insurance subsidiaries, and has an $811.6 million market cap.
The company over the past five years grew per-share revenue at a rate of 15.5% and book value at 12.4%. EBITDA, meanwhile, declined at a rate of 8.7%.
The company’s market price is currently near a 10-year high, and it trades with a P/E of 28.3, P/B of 1.3 and P/S of 0.6.
Infinity Property and Casualty 10-year revenue and earnings history:
BB&T Corp. (BB&T)
Diamond Hill in the third quarter purchased 10,911 shares of BB&T at the average price of about $35. The price has since slipped 1% to $34.54.
BB&T is a community banking company and one of the largest financial services holdings companies in the U.S., with $182.7 billion in assets as of June 30, 2013.
Over the past five years the company grew per-share EBITDA at an annual rate of 3.6% and book value at a rate of 2.4%. Revenue declined at a rate of 0.9% over the same period.
BB&T’s stock price is currently near a five-year high, and its P/S ratio, at 2.52, is also near a five-year high. The company has a P/E of 14.3 and P/B of 1.3.
BB&T 10-year revenue and earnings history:
Air Methods Corp. (AIRM)
Diamond Hill in the third quarter bought 8,635 shares of Air Methods Corp. (AIRM) when the price averaged $38. The price since rose about 15% to $44.16 per share on Tuesday afternoon.
Air Methods is an air medical transport company formed in 1980 and based in Englewood, Colo., with operations in 48 states from Alaska to Key West.
The company over the past five years has had per-share annual growth rates of 12.9% for revenue, 41.3% for EBITDA and 17.1% for book value.
The company’s current price, P/E at 27.7 and P/S at 2.06, are all close to their respective 10-year highs. The company also has a P/B of 5.4.
Air Methods 10-year revenue and earnings history:
U.S. Bancorp (USB)
Diamond Hill purchased 6,400 shares of U.S. Bancorp in the third quarter when the price averaged $37 per share. It has since increased about 2% to $37.83 on Tuesday afternoon.
U.S. Bancorp is the parent company of the fifth largest commercial U.S. bank, U.S. bank, and has $321 million in assets.
The company has five-year per-share annual growth rates of 6.1% for revenue, 19.2% for EBITDA, 9.2% for free cash flow and 14% for book value.
The market price of U.S. Bancorp is close to a 10-year high, and its P/S at 3.57 is close to a five-year high. It also has a P/E of 12.8, P/B of 2 and P/S of 3.6.
The company’s 10-year revenue and earnings history:
Go to Diamond Hill’s portfolio here to see more of their stocks. Also check out the Undervalued Stocks, Top Growth Companies and High Yield stocks of Diamond Hill Capital.
Not a Premium Member of GuruFocus? Try it for free for 7 days here!
