Diamond Hill Capital (Trades, Portfolio) began its operations in 2000 in Columbus, Ohio and was founded by Ric Dillon. Prior to this, Dillon had 23 years of investment experience as the portfolio manager for Winters Bank and Parker and Carlson & Johnson. He was also a research analyst for the Ohio Public Employee Retirement system.
Dillon likes to follow three of Benjamin Graham's investment philosophies as part of his mental model checklist for purchasing securities. The first is thinking and purchasing securities with an owner mentality. Secondly, when he purchases a stock, he must have a margin of safety. He estimates what he thinks the business is worth and he never pays more than his estimate. Third, he invests for the long term because he believes that investing for long term growth is the optimal strategy for investing. Diamond Hill Capital (Trades, Portfolio) currently owns 164 stocks with a total value of $15 billion.
In the first quarter of 2016, Diamond Hill Capital (Trades, Portfolio) added 119,552 shares of Hub Group Inc. (HUBG, Financial).
Hub Group is a Delaware corporation that was incorporated on March 8, 1995. The company is one of North America’s leading asset light freight transportation management companies. They offer comprehensive intermodal, truck brokerage and logistics services. Since the company was founded in 1971, Hub Group has grown to become one of the largest intermodal marketing companies in the U.S. and one of the largest truck brokers. The company has the ability to arrange for the movement of freight in and out of every major city in the U.S., Canada and Mexico.
Hub Group has a market cap of $1.41 billion, a P/E ratio of 20.02, an enterprise value of $1.34 billion, a P/B ratio of 2.20 and a quick ratio of 1.74.
Diamond Hill Capital (Trades, Portfolio) likely increased their stake in Hub Group because the company has multiple good signs. Hub Group is one of North America's leading asset light freight transportation management companies. The company's book value has also grown at an average rate of 11% over the previous 10 years. The company is also trading below its intrinsic value, which is an important statistic that Diamond Hill Capital (Trades, Portfolio) focuses on to provide an adequate margin of safety for their investments. The Piotroski F-Score is 7, which indicates a very healthy financial situation.
Below is a Peter Lynch Chart for Hub Group Inc.
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