9 Stocks Diamond Hill Continues to Buy

The firm increased its positions in these companies the past 2 quarters

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Dec 19, 2016
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Diamond Hill Capital (Trades, Portfolio) Management Inc. is a registered investment adviser based in Columbus, Ohio and was established in 2000. In both the second and third quarters, the firm bought the following stocks:

General Electric Co. (GE, Financial)

During the second quarter, Diamond Hill increased its holding by 16.49% and increased it by 4.07% in the third quarter. The company is diversified with products and services that range from aircraft engines, power generation, oil & gas production equipment, household appliances, medical imaging, business & consumer financing and industrial products. During the third quarter, GAAP continuing operations earnings per share grew 21% and orders increased 16%.

Ken Fisher (Trades, Portfolio) is the largest shareholder of the company among the gurus with 0.36% of outstanding shares, followed by Bill Nygren (Trades, Portfolio) with 0.16%, T Rowe Price Equity Income Fund (Trades, Portfolio) with 0.12%, Warren Buffett (Trades, Portfolio) with 0.12%, First Pacific Advisors (Trades, Portfolio) with 0.11%, Steven Romick (Trades, Portfolio) with 0.08% and Pioneer Investments (Trades, Portfolio) with 0.08%.

Cincinnati Bell Inc. (CBB, Financial)

The firm boosted its holding by 242.31% during the second quarter and increased it by 7.55% in the third quarter. The firm currently holds 0.64% of outstanding shares. Cincinnati Bell is a full-service regional provider of entertainment, data and voice communications services and equipment over wireline and wireless networks. Consolidated revenue increased $12 million compared to the third quarter of a year before and net income totaled $19 million, resulting in diluted earnings per share of 38 cents.

The largest shareholder among the gurus is Mario Gabelli (Trades, Portfolio) with 6.12% of outstanding shares, followed by Jim Simons (Trades, Portfolio) with 0.65% and Paul Tudor Jones (Trades, Portfolio) with 0.04%.

Keysight Technologies Inc. (KEYS, Financial)

During the second quarter, the firm increased its position by 6.54%. In the third quarter, it again added to its position by 10.77%. The guru currently holds 0.45% of outstanding shares of the stock. Keysight is a measurement company providing core electronic design and test solutions to communications and electronics industries. It provides electronic measurement instruments and systems and related software. Third quarter non-GAAP revenue decreased 1% while non-GAAP operating margins grew 18.9%. The company reported a growth of 3% for orders.

PRIMECAP Management (Trades, Portfolio) is the largest shareholder of the company among the gurus with 3.97% of outstanding shares, followed by Richard Snow (Trades, Portfolio) with 1.55%, Robert Olstein (Trades, Portfolio) with 0.29%, Jim Simons (Trades, Portfolio) with 0.28%, Michael Price (Trades, Portfolio) with 0.12% and Paul Tudor Jones (Trades, Portfolio) with 0.12%.

XL Group Ltd. (XL, Financial)

During the second quarter, Diamond Hill increased its position by 12.59% and by 3.92% in the third quarter. The firm currently holds 0.29% of outstanding shares. Through its subsidiaries, XL Group provides insurance and reinsurance.

The largest shareholder among the gurus is Richard Pzena (Trades, Portfolio) with 1.89% of outstanding shares, followed by Barrow, Hanley, Mewhinney & Strauss with 1.53%, T Rowe Price Equity Income Fund (Trades, Portfolio) with 0.66%, Donald Smith (Trades, Portfolio) with 0.62%, RS Investment Management (Trades, Portfolio) with 0.51%, Pioneer Investments (Trades, Portfolio) with 0.49% and Jim Simons (Trades, Portfolio) with 0.22%.

NVR Inc. (NVR, Financial)

During the second quarter, the firm increased its position by 55.54% and again by 8.38% in the third quarter. The firm currently holds 0.51% of outstanding shares. NVR is engaged in the construction and sale of single-family detached homes, townhomes and condominium buildings. The company, through its subsidiaries, also operates in mortgage banking and title services. Third quarter net income increased 1% from the same quarter of a year before and net orders grew 7%.

Alan Fournier (Trades, Portfolio) is the largest shareholder of the company among the gurus with 1.04% of outstanding shares, followed by Ken Heebner (Trades, Portfolio) with 0.73%, Barrow, Hanley, Mewhinney & Strauss with 0.64%, Columbia Wanger (Trades, Portfolio) with 0.62%, Chuck Royce (Trades, Portfolio) with 0.13% and Joel Greenblatt (Trades, Portfolio) with 0.1%.

Staples Inc. (SPLS, Financial)

During the second quarter, Diamond Hill increased its holding by 12.88%. In the third quarter, the firm again added to its position by 3.82%. The firm currently holds 0.69% of outstanding shares. Staples is an office products company that sells and delivers office products and services. The company provides products, services and expertise in the categories of office supplies, technology, furniture, and copy and printing services, as well as other.

The largest shareholder among the gurus is Richard Pzena (Trades, Portfolio) with 4.98% of outstanding shares, followed by Jim Simons (Trades, Portfolio) with 1.09%, Donald Yacktman (Trades, Portfolio) with 0.35%, T Rowe Price Equity Income Fund (Trades, Portfolio) with 0.32%, the Yacktman Fund (Trades, Portfolio) with 0.31%, Hotchkis & Wiley with 0.27% and Ray Dalio (Trades, Portfolio) with 0.16%.

Edgewell Personal Care Co. (EPC, Financial)

During the second quarter, the firm increased its position by 42.75%. In the third quarter, it increased it by 2.08%. Diamond Hill currently holds 0.89% of outstanding shares of the stock. Edgewell manufactures and markets personal care products in the wet shave, skin care, feminine care and infant care categories. Its brands include Schick, Wilkinson Sword, Edge, Playtex, Hawaiian Tropic and Wet Ones. Full-year organic net sales grew 1.4%. Driven by growth in all four segments and all key geographic regions, net sales increased 9%.

The largest shareholder among the gurus is Mario Gabelli (Trades, Portfolio) with 3.25% of outstanding shares, followed by George Soros (Trades, Portfolio) with 0.28%, Joel Greenblatt (Trades, Portfolio) with 0.25%, Jim Simons (Trades, Portfolio) with 0.24%, Ken Fisher (Trades, Portfolio) with 0.14% and Steven Cohen (Trades, Portfolio) with 0.06%.

SPX FLOW Inc. (FLOW, Financial)

During the second quarter, Diamond Hill increased its position by 5.51%. In the third quarter, it again added to its position by 12.80%. The firm currently holds 3.5% of outstanding shares. SPX FLOW is engaged in engineering, designing and manufacturing flow control systems integral to process, blend, transport, meter, filter and dehydrate various types of fluids, gases and powders across a range of applications. Operating income and margin were $21.8 million and 4.7% in the third quarter compared to operating income and margin of $6.6 million and 1.1% in the year-ago quarter. Revenues were $173.0 million compared to $205.9 million in the third quarter last year and decreased 16.0%.

Third Avenue Management (Trades, Portfolio) is another notable shareholder of the company among the gurus with 0.16% of outstanding shares, followed by Joel Greenblatt (Trades, Portfolio) with 0.09%, Jim Simons (Trades, Portfolio) with 0.04% and Jeremy Grantham (Trades, Portfolio) with 0.03%.

Orthofix International NV. (OFIX, Financial)

During the second quarter, the firm increased its holding by 4.39% and by 2.18% in the third quarter. The firm currently holds 6.6% of outstanding shares. Orthofix is engaged in developing and delivering repair and regenerative solutions to the spine and orthopedic markets. During the third quarter, net sales decreased 2.6% from the same quarter of a year before while GAAP net income had an increase of $11.2 million.

Another notable shareholder among the gurus is Jim Simons (Trades, Portfolio) with 2.94% of outstanding shares, followed by Mario Gabelli (Trades, Portfolio) with 0.54%, Chuck Royce (Trades, Portfolio) with 0.31% and Paul Tudor Jones (Trades, Portfolio) with 0.07%.

Disclosure: I do not own any shares of any stocks mentioned in this article.

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