Summary Of Diamond Hill Small Cap Fund Letter For The Third Quarter
In the third quarter letter the fund manager of Diamond Hill Small Cap Fund discuss the funds performance against the Russell 2000. During the third quarter the fund decreased 5.86% while the Russell 2000 decreased 7.36%. The funds holding in energy, financials, and the industrial sectors were the largest detractor from return, while the funds holding in healthcare sector contributed to return. Clearly the fund outperformance of the Russell 2000, had to do with the fund selection of holdings and the health care sector and energy sector, as well as high cash balance.
Best Performers During The Third Quarter
The fund in the third quarter letter discuss its best holdings which included medical device manufacturer Natus Medical Inc. (BABY, Financial), rail road service company Trinity Industries Inc. (TRN, Financial), resort operator Vail Resorts Ince (MTN, Financial), Correction Corp Of America (CXW, Financial), and Endurance Specialty Holdings Ltd. (ENH, Financial).
Worst Perfromers During The Third Quarter
During the third quarters these holdering were the worse performers for Diamond Hill Small Cap Fund. Rosseta Resources Inc. (ROSE, Financial) , TriMas Corp. (TRS, Financial) , Tenneco Inc. (TEN, Financial) , Popular Inc. (BPOP, Financial) and Hub Group (HUBG, Financial).
New Postion Added During The Third Quarter
The fund took advantage of an opportunity to purchase shares of Post Holding (POST) when stock fell sharply after Post Holdings quarterly earnings came in below Wall Streets analysts estimates and the company lowered its full year earning guidance.
Postion That Was Elimated During The Third Quarter
During the third quarter the fund elimated its stake in Liquidity Services Inc. when the firms fundamentials deteriorated below the funds initial expectations.
Third Quarter Letter link: http://cdn1.valuewalk.com/wp-content/uploads/2014/10/140930_Small-Cap-Fund_Commentary.pdf
