This is the Q4 portfolio update of Diamond Hill Capital Management Inc. Diamond Hill Capital is a public traded company that manages mutual funds in with value investing strategies. Their small cap fund gained 22.99% in 2010, and the fund averaged more than 11.7% in the past decade.
The investments the firm looks are the companies that are sold for less than their appraisal of intrinsic values and suitable for investors with a 5+ years investment horizon. To determine intrinsic value, the business must be understandable and the cash flows must be reasonably estimable.” In addition, we seek businesses with a lasting competitive advantage and management with an owner mentality such that shareholders will reap the rewards of the underlying business performance.”
This is their commentary in their shareholder letter:
Among the many challenges for active money managers in recent years was the high correlation of U.S. stocks, which increasingly moved in lock step with macroeconomic forces, reacting to the headline news of the day. In part due to these high correlations, a similar phenomenon to the indexing dominance of the late 1990s is underway with the growing popularity of exchange-traded funds (ETFs), both broad market ETFs as well as sector-specific ETFs. Due to the disappointing returns of actively managed funds (both absolute and relative), ETFs are increasingly used as a substitute for individual stocks in many investors' portfolios with assets invested in ETFs recently exceeding $1 trillion. As a result, the importance of individual security valuation is de-emphasized, as investors instead choose to look to a particular asset class or theme. However, stock correlations fell from the historically high levels reached in May and June of this year, perhaps setting the stage for valuation-sensitive investors (like us) to hold sway once again. An increasing level of merger and acquisition activity, which benefited some of our strategies, may have been one factor contributing to the lower correlations in the second half of the year.
As of 12/31/2010, Diamond Hill Capital Management Inc owns 135 stocks with a total value of $7.9 billion. These are the details of the buys and sells.
This is the sector weightings of his portfolio:
These are the top 5 holdings of Diamond Hill Capital
Added: Pnc Finl Svc Cp (PNC)
Diamond Hill Capital added to his holdings in Pnc Finl Svc Cp by 6096.29%. His purchase prices were between $51.32 and $61.57, with an estimated average price of $56.05. The impact to his portfolio due to this purchase was 1.62%. His holdings were 2,151,599 shares as of 12/31/2010.
Added: Assurant Inc (AIZ)
Diamond Hill Capital added to his holdings in Assurant Inc by 72.08%. His purchase prices were between $34.62 and $41.68, with an estimated average price of $38.53. The impact to his portfolio due to this purchase was 0.62%. His holdings were 3,042,153 shares as of 12/31/2010.
Added: Jpmorgan Chase (JPM)
Diamond Hill Capital added to his holdings in Jpmorgan Chase by 28.46%. His purchase prices were between $36.96 and $42.67, with an estimated average price of $39.41. The impact to his portfolio due to this purchase was 0.59%. His holdings were 4,965,961 shares as of 12/31/2010.
Added: Us Bancorp (USB)
Diamond Hill Capital added to his holdings in Us Bancorp by 43.66%. His purchase prices were between $21.62 and $27.18, with an estimated average price of $24.57. The impact to his portfolio due to this purchase was 0.56%. His holdings were 5,398,126 shares as of 12/31/2010.
Added: Abbott Labs (ABT)
Diamond Hill Capital added to his holdings in Abbott Labs by 22.06%. His purchase prices were between $46.49 and $53.67, with an estimated average price of $49.62. The impact to his portfolio due to this purchase was 0.43%. His holdings were 3,971,465 shares as of 12/31/2010.
Added: Pepsico Inc (PEP)
Diamond Hill Capital added to his holdings in Pepsico Inc by 20.47%. His purchase prices were between $63.89 and $68.11, with an estimated average price of $65.31. The impact to his portfolio due to this purchase was 0.41%. His holdings were 2,931,609 shares as of 12/31/2010.
Added: Procter & Gambl (PG)
Diamond Hill Capital added to his holdings in Procter & Gambl by 18.74%. His purchase prices were between $59.96 and $65.24, with an estimated average price of $63.29. The impact to his portfolio due to this purchase was 0.4%. His holdings were 3,112,035 shares as of 12/31/2010.
Added: Occidental Pet (OXY)
Diamond Hill Capital added to his holdings in Occidental Pet by 11.79%. His purchase prices were between $78.63 and $99.03, with an estimated average price of $87.47. The impact to his portfolio due to this purchase was 0.39%. His holdings were 3,001,061 shares as of 12/31/2010.
Added: Utd Techs Corp (UTX)
Diamond Hill Capital added to his holdings in Utd Techs Corp by 13.63%. His purchase prices were between $70.53 and $79.52, with an estimated average price of $76. The impact to his portfolio due to this purchase was 0.37%. His holdings were 3,074,617 shares as of 12/31/2010.
Added: Merck & Co Inc (MRK)
Diamond Hill Capital added to his holdings in Merck & Co Inc by 18.08%. His purchase prices were between $34.1 and $37.42, with an estimated average price of $36.05. The impact to his portfolio due to this purchase was 0.36%. His holdings were 5,095,169 shares as of 12/31/2010.
Added: Medtronic (MDT)
Diamond Hill Capital added to his holdings in Medtronic by 15.71%. His purchase prices were between $33.21 and $37.62, with an estimated average price of $35.03. The impact to his portfolio due to this purchase was 0.36%. His holdings were 5,599,119 shares as of 12/31/2010.
Added: Devon Energy (DVN)
Diamond Hill Capital added to his holdings in Devon Energy by 11.62%. His purchase prices were between $64.35 and $78.2, with an estimated average price of $70.51. The impact to his portfolio due to this purchase was 0.36%. His holdings were 3,485,242 shares as of 12/31/2010.
Added: Prudential Finl (PRU)
Diamond Hill Capital added to his holdings in Prudential Finl by 21.25%. His purchase prices were between $50.68 and $59.95, with an estimated average price of $54.73. The impact to his portfolio due to this purchase was 0.32%. His holdings were 2,448,869 shares as of 12/31/2010.
Added: Anadarko Petrol (APC)
Diamond Hill Capital added to his holdings in Anadarko Petrol by 9.26%. His purchase prices were between $56.05 and $75.59, with an estimated average price of $64.12. The impact to his portfolio due to this purchase was 0.32%. His holdings were 3,882,258 shares as of 12/31/2010.
Added: Apache Corp (APA)
Diamond Hill Capital added to his holdings in Apache Corp by 9.17%. His purchase prices were between $97.01 and $119.92, with an estimated average price of $108.55. The impact to his portfolio due to this purchase was 0.32%. His holdings were 2,541,459 shares as of 12/31/2010.
Added: Conagra Foods (CAG)
Diamond Hill Capital added to his holdings in Conagra Foods by 18.63%. His purchase prices were between $21.14 and $22.95, with an estimated average price of $22.17. The impact to his portfolio due to this purchase was 0.31%. His holdings were 6,881,043 shares as of 12/31/2010.
Added: Microsoft Corp (MSFT)
Diamond Hill Capital added to his holdings in Microsoft Corp by 15.78%. His purchase prices were between $23.91 and $28.3, with an estimated average price of $26.33. The impact to his portfolio due to this purchase was 0.3%. His holdings were 6,211,842 shares as of 12/31/2010.
Added: Sysco Corp (SYY)
Diamond Hill Capital added to his holdings in Sysco Corp by 19.47%. His purchase prices were between $28.33 and $30.13, with an estimated average price of $29.16. The impact to his portfolio due to this purchase was 0.29%. His holdings were 4,784,682 shares as of 12/31/2010.
Added: Ill Tool Works (ITW)
Diamond Hill Capital added to his holdings in Ill Tool Works by 16.47%. His purchase prices were between $45.68 and $53.73, with an estimated average price of $48.9. The impact to his portfolio due to this purchase was 0.27%. His holdings were 2,876,615 shares as of 12/31/2010.
Added: Pfizer Inc (PFE)
Diamond Hill Capital added to his holdings in Pfizer Inc by 12.44%. His purchase prices were between $16.3 and $17.8, with an estimated average price of $17.16. The impact to his portfolio due to this purchase was 0.27%. His holdings were 11,097,833 shares as of 12/31/2010.
Added: Johnson & Johns (JNJ)
Diamond Hill Capital added to his holdings in Johnson & Johns by 18.3%. His purchase prices were between $61.55 and $64.76, with an estimated average price of $63.08. The impact to his portfolio due to this purchase was 0.27%. His holdings were 2,262,306 shares as of 12/31/2010.
Added: Genl Mills (GIS)
Diamond Hill Capital added to his holdings in Genl Mills by 18.43%. His purchase prices were between $34.99 and $37.56, with an estimated average price of $36.27. The impact to his portfolio due to this purchase was 0.26%. His holdings were 3,709,753 shares as of 12/31/2010.
Added: Quest Diagnostc (DGX)
Diamond Hill Capital added to his holdings in Quest Diagnostc by 22.99%. His purchase prices were between $47.79 and $54.58, with an estimated average price of $51. The impact to his portfolio due to this purchase was 0.25%. His holdings were 1,965,954 shares as of 12/31/2010.
Added: 3m Co (MMM)
Diamond Hill Capital added to his holdings in 3m Co by 16.17%. His purchase prices were between $83.59 and $90.9, with an estimated average price of $86.66. The impact to his portfolio due to this purchase was 0.23%. His holdings were 1,510,874 shares as of 12/31/2010.
Added: Bank Of Ny Mell (BK)
Diamond Hill Capital added to his holdings in Bank Of Ny Mell by 30.79%. His purchase prices were between $24.93 and $30.52, with an estimated average price of $27.46. The impact to his portfolio due to this purchase was 0.21%. His holdings were 2,294,049 shares as of 12/31/2010.
Added: Wal-mart Stores (WMT)
Diamond Hill Capital added to his holdings in Wal-mart Stores by 14.63%. His purchase prices were between $53.25 and $55.36, with an estimated average price of $54.18. The impact to his portfolio due to this purchase was 0.21%. His holdings were 2,453,791 shares as of 12/31/2010.
Added: Exxon Mobil Crp (XOM)
Diamond Hill Capital added to his holdings in Exxon Mobil Crp by 13.25%. His purchase prices were between $62.19 and $73.42, with an estimated average price of $69.07. The impact to his portfolio due to this purchase was 0.21%. His holdings were 1,922,769 shares as of 12/31/2010.
Added: Marsh &mclennan (MMC)
Diamond Hill Capital added to his holdings in Marsh &mclennan by 25.41%. His purchase prices were between $23.53 and $27.48, with an estimated average price of $25.54. The impact to his portfolio due to this purchase was 0.19%. His holdings were 2,716,650 shares as of 12/31/2010.
Added: Cisco Systems (CSCO)
Diamond Hill Capital added to his holdings in Cisco Systems by 19.26%. His purchase prices were between $19.07 and $24.49, with an estimated average price of $21.26. The impact to his portfolio due to this purchase was 0.19%. His holdings were 4,599,315 shares as of 12/31/2010.
Added: Raytheon Co (RTN)
Diamond Hill Capital added to his holdings in Raytheon Co by 20.15%. His purchase prices were between $44.45 and $48.33, with an estimated average price of $46.44. The impact to his portfolio due to this purchase was 0.18%. His holdings were 1,813,542 shares as of 12/31/2010.
Added: Unitedhealth Gp (UNH)
Diamond Hill Capital added to his holdings in Unitedhealth Gp by 12.06%. His purchase prices were between $33.95 and $38.05, with an estimated average price of $36.12. The impact to his portfolio due to this purchase was 0.18%. His holdings were 3,719,700 shares as of 12/31/2010.
Added: Dover Corp (DOV)
Diamond Hill Capital added to his holdings in Dover Corp by 8.6%. His purchase prices were between $52.12 and $58.96, with an estimated average price of $55.48. The impact to his portfolio due to this purchase was 0.17%. His holdings were 2,923,127 shares as of 12/31/2010.
Added: Mcdonalds Corp (MCD)
Diamond Hill Capital added to his holdings in Mcdonalds Corp by 10.63%. His purchase prices were between $74.95 and $80.34, with an estimated average price of $77.81. The impact to his portfolio due to this purchase was 0.17%. His holdings were 1,838,753 shares as of 12/31/2010.
Added: Linear Tec Corp (LLTC)
Diamond Hill Capital added to his holdings in Linear Tec Corp by 31.38%. His purchase prices were between $29.92 and $34.93, with an estimated average price of $32.63. The impact to his portfolio due to this purchase was 0.15%. His holdings were 1,434,774 shares as of 12/31/2010.
Added: Air Prods & Che (APD)
Diamond Hill Capital added to his holdings in Air Prods & Che by 8.51%. His purchase prices were between $81.3 and $91.25, with an estimated average price of $86.07. The impact to his portfolio due to this purchase was 0.14%. His holdings were 1,587,383 shares as of 12/31/2010.
Added: Travelers Cos (TRV)
Diamond Hill Capital added to his holdings in Travelers Cos by 6.51%. His purchase prices were between $52.12 and $57.44, with an estimated average price of $54.95. The impact to his portfolio due to this purchase was 0.14%. His holdings were 3,153,128 shares as of 12/31/2010.
Added: Hillenbrand Inc (HI)
Diamond Hill Capital added to his holdings in Hillenbrand Inc by 61.63%. His purchase prices were between $19.21 and $22.32, with an estimated average price of $20.75. The impact to his portfolio due to this purchase was 0.13%. His holdings were 1,288,048 shares as of 12/31/2010.
Added: Corelogic Inc (CLGX)
Diamond Hill Capital added to his holdings in Corelogic Inc by 59.21%. His purchase prices were between $17.48 and $18.86, with an estimated average price of $18.22. The impact to his portfolio due to this purchase was 0.12%. His holdings were 1,365,068 shares as of 12/31/2010.
Added: Chubb Corp (CB)
Diamond Hill Capital added to his holdings in Chubb Corp by 25.99%. His purchase prices were between $56.05 and $60.23, with an estimated average price of $58.27. The impact to his portfolio due to this purchase was 0.12%. His holdings were 764,659 shares as of 12/31/2010.
Added: Baxter Intl (BAX)
Diamond Hill Capital added to his holdings in Baxter Intl by 8.68%. His purchase prices were between $47.58 and $51.97, with an estimated average price of $50.28. The impact to his portfolio due to this purchase was 0.1%. His holdings were 2,031,759 shares as of 12/31/2010.
Added: Csg Sys Intl (CSGS)
Diamond Hill Capital added to his holdings in Csg Sys Intl by 51.01%. His purchase prices were between $18.02 and $20.2, with an estimated average price of $19.14. The impact to his portfolio due to this purchase was 0.04%. His holdings were 514,869 shares as of 12/31/2010.
Added: First Niagara (FNFG)
Diamond Hill Capital added to his holdings in First Niagara by 72.44%. His purchase prices were between $11.55 and $14.31, with an estimated average price of $12.58. The impact to his portfolio due to this purchase was 0.04%. His holdings were 492,485 shares as of 12/31/2010.
Added: Popular Inc (BPOP)
Diamond Hill Capital added to his holdings in Popular Inc by 29.44%. His purchase prices were between $2.701 and $3.11, with an estimated average price of $2.88. The impact to his portfolio due to this purchase was 0.03%. His holdings were 2,907,470 shares as of 12/31/2010.
Added: Sterling Bancrp (STL)
Diamond Hill Capital added to his holdings in Sterling Bancrp by 29.74%. His purchase prices were between $8.71 and $10.59, with an estimated average price of $9.59. The impact to his portfolio due to this purchase was 0.02%. His holdings were 585,997 shares as of 12/31/2010.
Added: Ruddick Corp (RDK)
Diamond Hill Capital added to his holdings in Ruddick Corp by 44.97%. His purchase prices were between $34.3 and $39.74, with an estimated average price of $36.49. The impact to his portfolio due to this purchase was 0.02%. His holdings were 180,829 shares as of 12/31/2010.
Added: Energen Corp (EGN)
Diamond Hill Capital added to his holdings in Energen Corp by 43.96%. His purchase prices were between $43.57 and $48.52, with an estimated average price of $45.84. The impact to his portfolio due to this purchase was 0.01%. His holdings were 45,880 shares as of 12/31/2010.
Added: First Ca Finl (FCAL)
Diamond Hill Capital added to his holdings in First Ca Finl by 50.38%. His purchase prices were between $2.34 and $2.87, with an estimated average price of $2.51. The impact to his portfolio due to this purchase was less than 0.01%. His holdings were 139,151 shares as of 12/31/2010.
New Purchase: Eog Res Inc (EOG, Financial)
Diamond Hill Capital initiated holdings in Eog Res Inc. His purchase prices were between $88.29 and $101.33, with an estimated average price of $93.64. The impact to his portfolio due to this purchase was 0.72%. His holdings were 620,439 shares as of 12/31/2010.
New Purchase: Broadridge Finl (BR, Financial)
Diamond Hill Capital initiated holdings in Broadridge Finl. His purchase prices were between $20.59 and $22.88, with an estimated average price of $21.75. The impact to his portfolio due to this purchase was 0.14%. His holdings were 489,845 shares as of 12/31/2010.
New Purchase: Greatbatch Inc (GB, Financial)
Diamond Hill Capital initiated holdings in Greatbatch Inc. His purchase prices were between $21.75 and $24.9, with an estimated average price of $23.04. The impact to his portfolio due to this purchase was 0.1%. His holdings were 324,670 shares as of 12/31/2010.
New Purchase: Teva Pharm Adr (TEVA, Financial)
Diamond Hill Capital initiated holdings in Teva Pharm Adr. His purchase prices were between $48.75 and $54.7, with an estimated average price of $51.74. The impact to his portfolio due to this purchase was 0.06%. His holdings were 97,413 shares as of 12/31/2010.
New Purchase: B&g Foods Cl-a (BGS, Financial)
Diamond Hill Capital initiated holdings in B&g Foods Cl-a. His purchase prices were between $10.69 and $13.81, with an estimated average price of $12.48. The impact to his portfolio due to this purchase was 0.05%. His holdings were 280,200 shares as of 12/31/2010.
New Purchase: Ishars-rs 1k Vl (IWD, Financial)
Diamond Hill Capital initiated holdings in Ishars-rs 1k Vl. His purchase prices were between $58.94 and $64.88, with an estimated average price of $61.95. The impact to his portfolio due to this purchase was 0.02%. His holdings were 22,142 shares as of 12/31/2010.
New Purchase: Hcc Ins Hldgs (HCC, Financial)
Diamond Hill Capital initiated holdings in Hcc Ins Hldgs. His purchase prices were between $25.83 and $29.09, with an estimated average price of $27.76. The impact to his portfolio due to this purchase was 0.01%. His holdings were 19,270 shares as of 12/31/2010.
Reduced: Dominion Res Va (D)
Diamond Hill Capital reduced to his holdings in Dominion Res Va by 75.34%. His sale prices were between $41.53 and $44.92, with an estimated average price of $43.14. The impact to his portfolio due to this sale was -1.41%. Diamond Hill Capital still held 854,248 shares as of 12/31/2010.
Reduced: Suntrust Bks (STI)
Diamond Hill Capital reduced to his holdings in Suntrust Bks by 94.82%. His sale prices were between $23.36 and $29.66, with an estimated average price of $26. The impact to his portfolio due to this sale was -0.37%. Diamond Hill Capital still held 54,323 shares as of 12/31/2010.
Reduced: King Pharmaceut (KG)
Diamond Hill Capital reduced to his holdings in King Pharmaceut by 62.56%. His sale prices were between $9.97 and $14.22, with an estimated average price of $13.76. The impact to his portfolio due to this sale was -0.37%. Diamond Hill Capital still held 1,228,042 shares as of 12/31/2010.
Reduced: Cimarex Energy (XEC)
Diamond Hill Capital reduced to his holdings in Cimarex Energy by 29.65%. His sale prices were between $68.4 and $89.85, with an estimated average price of $80.62. The impact to his portfolio due to this sale was -0.29%. Diamond Hill Capital still held 609,106 shares as of 12/31/2010.
Reduced: Airtran Hldgs (AAI)
Diamond Hill Capital reduced to his holdings in Airtran Hldgs by 44.29%. His sale prices were between $7.33 and $7.5, with an estimated average price of $7.42. The impact to his portfolio due to this sale was -0.13%. Diamond Hill Capital still held 1,746,401 shares as of 12/31/2010.
Reduced: Corrections Crp (CXW)
Diamond Hill Capital reduced to his holdings in Corrections Crp by 37.32%. His sale prices were between $24.12 and $26.71, with an estimated average price of $25.25. The impact to his portfolio due to this sale was -0.1%. Diamond Hill Capital still held 504,736 shares as of 12/31/2010.
Reduced: Molson Coors-b (TAP)
Diamond Hill Capital reduced to his holdings in Molson Coors-b by 69.77%. His sale prices were between $46.48 and $50.93, with an estimated average price of $48.97. The impact to his portfolio due to this sale was -0.09%. Diamond Hill Capital still held 62,760 shares as of 12/31/2010.
Reduced: Toro Co (TTC)
Diamond Hill Capital reduced to his holdings in Toro Co by 56.62%. His sale prices were between $55.72 and $64.38, with an estimated average price of $59.23. The impact to his portfolio due to this sale was -0.08%. Diamond Hill Capital still held 71,635 shares as of 12/31/2010.
Reduced: Carters Inc (CRI)
Diamond Hill Capital reduced to his holdings in Carters Inc by 51.72%. His sale prices were between $24.61 and $32.58, with an estimated average price of $28.91. The impact to his portfolio due to this sale was -0.07%. Diamond Hill Capital still held 185,970 shares as of 12/31/2010.
Reduced: Southwestrn Ene (SWN)
Diamond Hill Capital reduced to his holdings in Southwestrn Ene by 20.82%. His sale prices were between $32.73 and $38.42, with an estimated average price of $35.72. The impact to his portfolio due to this sale was -0.06%. Diamond Hill Capital still held 489,659 shares as of 12/31/2010.
Reduced: Hornbeck Offshr (HOS)
Diamond Hill Capital reduced to his holdings in Hornbeck Offshr by 39.74%. His sale prices were between $18.88 and $23.39, with an estimated average price of $21.36. The impact to his portfolio due to this sale was -0.05%. Diamond Hill Capital still held 302,135 shares as of 12/31/2010.
Reduced: Steris Corp (STE)
Diamond Hill Capital reduced to his holdings in Steris Corp by 32.95%. His sale prices were between $32.82 and $37.83, with an estimated average price of $35.16. The impact to his portfolio due to this sale was -0.04%. Diamond Hill Capital still held 187,618 shares as of 12/31/2010.
Reduced: Mvc Capital Inc (MVC)
Diamond Hill Capital reduced to his holdings in Mvc Capital Inc by 56.92%. His sale prices were between $12.81 and $15.12, with an estimated average price of $13.73. The impact to his portfolio due to this sale was less than 0.01%. Diamond Hill Capital still held 19,040 shares as of 12/31/2010.
Sold Out: Leucadia Natl (LUK)
Diamond Hill Capital sold out his holdings in Leucadia Natl. His sale prices were between $23.45 and $29.52, with an estimated average price of $26.63.
Sold Out: Wilmington Trst (WL)
Diamond Hill Capital sold out his holdings in Wilmington Trst. His sale prices were between $3.92 and $8.77, with an estimated average price of $5.42.
Sold Out: Hain Celestial (HAIN)
Diamond Hill Capital sold out his holdings in Hain Celestial. His sale prices were between $23.68 and $28.33, with an estimated average price of $26.07.
Sold Out: Jakks Pacific (JAKK)
Diamond Hill Capital sold out his holdings in Jakks Pacific. His sale prices were between $17.46 and $19.82, with an estimated average price of $19.12.
Sold Out: Huntington Bancshares Inc. Non Cumulativ (HBANP)
Diamond Hill Capital sold out his holdings in Huntington Bancshares Inc. Non Cumulativ. His sale prices were between $1056 and $1100, with an estimated average price of $1082.26.
Sold Out: Affil Managers (AMG)
Diamond Hill Capital sold out his holdings in Affil Managers. His sale prices were between $79.07 and $101.86, with an estimated average price of $90.32.
The investments the firm looks are the companies that are sold for less than their appraisal of intrinsic values and suitable for investors with a 5+ years investment horizon. To determine intrinsic value, the business must be understandable and the cash flows must be reasonably estimable.” In addition, we seek businesses with a lasting competitive advantage and management with an owner mentality such that shareholders will reap the rewards of the underlying business performance.”
This is their commentary in their shareholder letter:
Among the many challenges for active money managers in recent years was the high correlation of U.S. stocks, which increasingly moved in lock step with macroeconomic forces, reacting to the headline news of the day. In part due to these high correlations, a similar phenomenon to the indexing dominance of the late 1990s is underway with the growing popularity of exchange-traded funds (ETFs), both broad market ETFs as well as sector-specific ETFs. Due to the disappointing returns of actively managed funds (both absolute and relative), ETFs are increasingly used as a substitute for individual stocks in many investors' portfolios with assets invested in ETFs recently exceeding $1 trillion. As a result, the importance of individual security valuation is de-emphasized, as investors instead choose to look to a particular asset class or theme. However, stock correlations fell from the historically high levels reached in May and June of this year, perhaps setting the stage for valuation-sensitive investors (like us) to hold sway once again. An increasing level of merger and acquisition activity, which benefited some of our strategies, may have been one factor contributing to the lower correlations in the second half of the year.
As of 12/31/2010, Diamond Hill Capital Management Inc owns 135 stocks with a total value of $7.9 billion. These are the details of the buys and sells.
- New Purchases: EOG, BR, GB, TEVA, BGS, IWD, HCC,
- Added Positions: PNC, AIZ, JPM, USB, ABT, PEP, PG, OXY, UTX, MRK, MDT, DVN, APC, APA, PRU, CAG, MSFT, SYY, PFE, ITW, JNJ, GIS, DGX, MMM, WMT, BK, XOM, CSCO, MMC, UNH, RTN, DOV, MCD, LLTC, APD, TRV, HI, CLGX, CB, BAX, FNFG, CSGS, BPOP, STL, RDK, EGN, FCAL,
- Reduced Positions: D, STI, KG, XEC, AAI, CXW, TAP, TTC, CRI, SWN, HOS, STE, MVC,
- Sold Out: LUK, HAIN, WL, JAKK, AMG, HBANP,
This is the sector weightings of his portfolio:
| Oil & Gas | 19.5% |
| Financials | 18.3% |
| Industrials | 15.6% |
| Health Care | 14.8% |
| Consumer Goods | 11.3% |
| Technology | 6.6% |
| Consumer Services | 6.5% |
| Basic Materials | 1.8% |
| Utilities | 0.9% |
These are the top 5 holdings of Diamond Hill Capital
- Apache Corp (APA) - 2,541,459 shares, 3.83% of the total portfolio. Shares added by 9.17%
- Anadarko Petrol (APC) - 3,882,258 shares, 3.74% of the total portfolio. Shares added by 9.26%
- Occidental Pet (OXY) - 3,001,061 shares, 3.72% of the total portfolio. Shares added by 11.79%
- Devon Energy (DVN) - 3,485,242 shares, 3.46% of the total portfolio. Shares added by 11.62%
- Utd Techs Corp (UTX) - 3,074,617 shares, 3.06% of the total portfolio. Shares added by 13.63%
Added: Pnc Finl Svc Cp (PNC)
Diamond Hill Capital added to his holdings in Pnc Finl Svc Cp by 6096.29%. His purchase prices were between $51.32 and $61.57, with an estimated average price of $56.05. The impact to his portfolio due to this purchase was 1.62%. His holdings were 2,151,599 shares as of 12/31/2010.
Added: Assurant Inc (AIZ)
Diamond Hill Capital added to his holdings in Assurant Inc by 72.08%. His purchase prices were between $34.62 and $41.68, with an estimated average price of $38.53. The impact to his portfolio due to this purchase was 0.62%. His holdings were 3,042,153 shares as of 12/31/2010.
Added: Jpmorgan Chase (JPM)
Diamond Hill Capital added to his holdings in Jpmorgan Chase by 28.46%. His purchase prices were between $36.96 and $42.67, with an estimated average price of $39.41. The impact to his portfolio due to this purchase was 0.59%. His holdings were 4,965,961 shares as of 12/31/2010.
Added: Us Bancorp (USB)
Diamond Hill Capital added to his holdings in Us Bancorp by 43.66%. His purchase prices were between $21.62 and $27.18, with an estimated average price of $24.57. The impact to his portfolio due to this purchase was 0.56%. His holdings were 5,398,126 shares as of 12/31/2010.
Added: Abbott Labs (ABT)
Diamond Hill Capital added to his holdings in Abbott Labs by 22.06%. His purchase prices were between $46.49 and $53.67, with an estimated average price of $49.62. The impact to his portfolio due to this purchase was 0.43%. His holdings were 3,971,465 shares as of 12/31/2010.
Added: Pepsico Inc (PEP)
Diamond Hill Capital added to his holdings in Pepsico Inc by 20.47%. His purchase prices were between $63.89 and $68.11, with an estimated average price of $65.31. The impact to his portfolio due to this purchase was 0.41%. His holdings were 2,931,609 shares as of 12/31/2010.
Added: Procter & Gambl (PG)
Diamond Hill Capital added to his holdings in Procter & Gambl by 18.74%. His purchase prices were between $59.96 and $65.24, with an estimated average price of $63.29. The impact to his portfolio due to this purchase was 0.4%. His holdings were 3,112,035 shares as of 12/31/2010.
Added: Occidental Pet (OXY)
Diamond Hill Capital added to his holdings in Occidental Pet by 11.79%. His purchase prices were between $78.63 and $99.03, with an estimated average price of $87.47. The impact to his portfolio due to this purchase was 0.39%. His holdings were 3,001,061 shares as of 12/31/2010.
Added: Utd Techs Corp (UTX)
Diamond Hill Capital added to his holdings in Utd Techs Corp by 13.63%. His purchase prices were between $70.53 and $79.52, with an estimated average price of $76. The impact to his portfolio due to this purchase was 0.37%. His holdings were 3,074,617 shares as of 12/31/2010.
Added: Merck & Co Inc (MRK)
Diamond Hill Capital added to his holdings in Merck & Co Inc by 18.08%. His purchase prices were between $34.1 and $37.42, with an estimated average price of $36.05. The impact to his portfolio due to this purchase was 0.36%. His holdings were 5,095,169 shares as of 12/31/2010.
Added: Medtronic (MDT)
Diamond Hill Capital added to his holdings in Medtronic by 15.71%. His purchase prices were between $33.21 and $37.62, with an estimated average price of $35.03. The impact to his portfolio due to this purchase was 0.36%. His holdings were 5,599,119 shares as of 12/31/2010.
Added: Devon Energy (DVN)
Diamond Hill Capital added to his holdings in Devon Energy by 11.62%. His purchase prices were between $64.35 and $78.2, with an estimated average price of $70.51. The impact to his portfolio due to this purchase was 0.36%. His holdings were 3,485,242 shares as of 12/31/2010.
Added: Prudential Finl (PRU)
Diamond Hill Capital added to his holdings in Prudential Finl by 21.25%. His purchase prices were between $50.68 and $59.95, with an estimated average price of $54.73. The impact to his portfolio due to this purchase was 0.32%. His holdings were 2,448,869 shares as of 12/31/2010.
Added: Anadarko Petrol (APC)
Diamond Hill Capital added to his holdings in Anadarko Petrol by 9.26%. His purchase prices were between $56.05 and $75.59, with an estimated average price of $64.12. The impact to his portfolio due to this purchase was 0.32%. His holdings were 3,882,258 shares as of 12/31/2010.
Added: Apache Corp (APA)
Diamond Hill Capital added to his holdings in Apache Corp by 9.17%. His purchase prices were between $97.01 and $119.92, with an estimated average price of $108.55. The impact to his portfolio due to this purchase was 0.32%. His holdings were 2,541,459 shares as of 12/31/2010.
Added: Conagra Foods (CAG)
Diamond Hill Capital added to his holdings in Conagra Foods by 18.63%. His purchase prices were between $21.14 and $22.95, with an estimated average price of $22.17. The impact to his portfolio due to this purchase was 0.31%. His holdings were 6,881,043 shares as of 12/31/2010.
Added: Microsoft Corp (MSFT)
Diamond Hill Capital added to his holdings in Microsoft Corp by 15.78%. His purchase prices were between $23.91 and $28.3, with an estimated average price of $26.33. The impact to his portfolio due to this purchase was 0.3%. His holdings were 6,211,842 shares as of 12/31/2010.
Added: Sysco Corp (SYY)
Diamond Hill Capital added to his holdings in Sysco Corp by 19.47%. His purchase prices were between $28.33 and $30.13, with an estimated average price of $29.16. The impact to his portfolio due to this purchase was 0.29%. His holdings were 4,784,682 shares as of 12/31/2010.
Added: Ill Tool Works (ITW)
Diamond Hill Capital added to his holdings in Ill Tool Works by 16.47%. His purchase prices were between $45.68 and $53.73, with an estimated average price of $48.9. The impact to his portfolio due to this purchase was 0.27%. His holdings were 2,876,615 shares as of 12/31/2010.
Added: Pfizer Inc (PFE)
Diamond Hill Capital added to his holdings in Pfizer Inc by 12.44%. His purchase prices were between $16.3 and $17.8, with an estimated average price of $17.16. The impact to his portfolio due to this purchase was 0.27%. His holdings were 11,097,833 shares as of 12/31/2010.
Added: Johnson & Johns (JNJ)
Diamond Hill Capital added to his holdings in Johnson & Johns by 18.3%. His purchase prices were between $61.55 and $64.76, with an estimated average price of $63.08. The impact to his portfolio due to this purchase was 0.27%. His holdings were 2,262,306 shares as of 12/31/2010.
Added: Genl Mills (GIS)
Diamond Hill Capital added to his holdings in Genl Mills by 18.43%. His purchase prices were between $34.99 and $37.56, with an estimated average price of $36.27. The impact to his portfolio due to this purchase was 0.26%. His holdings were 3,709,753 shares as of 12/31/2010.
Added: Quest Diagnostc (DGX)
Diamond Hill Capital added to his holdings in Quest Diagnostc by 22.99%. His purchase prices were between $47.79 and $54.58, with an estimated average price of $51. The impact to his portfolio due to this purchase was 0.25%. His holdings were 1,965,954 shares as of 12/31/2010.
Added: 3m Co (MMM)
Diamond Hill Capital added to his holdings in 3m Co by 16.17%. His purchase prices were between $83.59 and $90.9, with an estimated average price of $86.66. The impact to his portfolio due to this purchase was 0.23%. His holdings were 1,510,874 shares as of 12/31/2010.
Added: Bank Of Ny Mell (BK)
Diamond Hill Capital added to his holdings in Bank Of Ny Mell by 30.79%. His purchase prices were between $24.93 and $30.52, with an estimated average price of $27.46. The impact to his portfolio due to this purchase was 0.21%. His holdings were 2,294,049 shares as of 12/31/2010.
Added: Wal-mart Stores (WMT)
Diamond Hill Capital added to his holdings in Wal-mart Stores by 14.63%. His purchase prices were between $53.25 and $55.36, with an estimated average price of $54.18. The impact to his portfolio due to this purchase was 0.21%. His holdings were 2,453,791 shares as of 12/31/2010.
Added: Exxon Mobil Crp (XOM)
Diamond Hill Capital added to his holdings in Exxon Mobil Crp by 13.25%. His purchase prices were between $62.19 and $73.42, with an estimated average price of $69.07. The impact to his portfolio due to this purchase was 0.21%. His holdings were 1,922,769 shares as of 12/31/2010.
Added: Marsh &mclennan (MMC)
Diamond Hill Capital added to his holdings in Marsh &mclennan by 25.41%. His purchase prices were between $23.53 and $27.48, with an estimated average price of $25.54. The impact to his portfolio due to this purchase was 0.19%. His holdings were 2,716,650 shares as of 12/31/2010.
Added: Cisco Systems (CSCO)
Diamond Hill Capital added to his holdings in Cisco Systems by 19.26%. His purchase prices were between $19.07 and $24.49, with an estimated average price of $21.26. The impact to his portfolio due to this purchase was 0.19%. His holdings were 4,599,315 shares as of 12/31/2010.
Added: Raytheon Co (RTN)
Diamond Hill Capital added to his holdings in Raytheon Co by 20.15%. His purchase prices were between $44.45 and $48.33, with an estimated average price of $46.44. The impact to his portfolio due to this purchase was 0.18%. His holdings were 1,813,542 shares as of 12/31/2010.
Added: Unitedhealth Gp (UNH)
Diamond Hill Capital added to his holdings in Unitedhealth Gp by 12.06%. His purchase prices were between $33.95 and $38.05, with an estimated average price of $36.12. The impact to his portfolio due to this purchase was 0.18%. His holdings were 3,719,700 shares as of 12/31/2010.
Added: Dover Corp (DOV)
Diamond Hill Capital added to his holdings in Dover Corp by 8.6%. His purchase prices were between $52.12 and $58.96, with an estimated average price of $55.48. The impact to his portfolio due to this purchase was 0.17%. His holdings were 2,923,127 shares as of 12/31/2010.
Added: Mcdonalds Corp (MCD)
Diamond Hill Capital added to his holdings in Mcdonalds Corp by 10.63%. His purchase prices were between $74.95 and $80.34, with an estimated average price of $77.81. The impact to his portfolio due to this purchase was 0.17%. His holdings were 1,838,753 shares as of 12/31/2010.
Added: Linear Tec Corp (LLTC)
Diamond Hill Capital added to his holdings in Linear Tec Corp by 31.38%. His purchase prices were between $29.92 and $34.93, with an estimated average price of $32.63. The impact to his portfolio due to this purchase was 0.15%. His holdings were 1,434,774 shares as of 12/31/2010.
Added: Air Prods & Che (APD)
Diamond Hill Capital added to his holdings in Air Prods & Che by 8.51%. His purchase prices were between $81.3 and $91.25, with an estimated average price of $86.07. The impact to his portfolio due to this purchase was 0.14%. His holdings were 1,587,383 shares as of 12/31/2010.
Added: Travelers Cos (TRV)
Diamond Hill Capital added to his holdings in Travelers Cos by 6.51%. His purchase prices were between $52.12 and $57.44, with an estimated average price of $54.95. The impact to his portfolio due to this purchase was 0.14%. His holdings were 3,153,128 shares as of 12/31/2010.
Added: Hillenbrand Inc (HI)
Diamond Hill Capital added to his holdings in Hillenbrand Inc by 61.63%. His purchase prices were between $19.21 and $22.32, with an estimated average price of $20.75. The impact to his portfolio due to this purchase was 0.13%. His holdings were 1,288,048 shares as of 12/31/2010.
Added: Corelogic Inc (CLGX)
Diamond Hill Capital added to his holdings in Corelogic Inc by 59.21%. His purchase prices were between $17.48 and $18.86, with an estimated average price of $18.22. The impact to his portfolio due to this purchase was 0.12%. His holdings were 1,365,068 shares as of 12/31/2010.
Added: Chubb Corp (CB)
Diamond Hill Capital added to his holdings in Chubb Corp by 25.99%. His purchase prices were between $56.05 and $60.23, with an estimated average price of $58.27. The impact to his portfolio due to this purchase was 0.12%. His holdings were 764,659 shares as of 12/31/2010.
Added: Baxter Intl (BAX)
Diamond Hill Capital added to his holdings in Baxter Intl by 8.68%. His purchase prices were between $47.58 and $51.97, with an estimated average price of $50.28. The impact to his portfolio due to this purchase was 0.1%. His holdings were 2,031,759 shares as of 12/31/2010.
Added: Csg Sys Intl (CSGS)
Diamond Hill Capital added to his holdings in Csg Sys Intl by 51.01%. His purchase prices were between $18.02 and $20.2, with an estimated average price of $19.14. The impact to his portfolio due to this purchase was 0.04%. His holdings were 514,869 shares as of 12/31/2010.
Added: First Niagara (FNFG)
Diamond Hill Capital added to his holdings in First Niagara by 72.44%. His purchase prices were between $11.55 and $14.31, with an estimated average price of $12.58. The impact to his portfolio due to this purchase was 0.04%. His holdings were 492,485 shares as of 12/31/2010.
Added: Popular Inc (BPOP)
Diamond Hill Capital added to his holdings in Popular Inc by 29.44%. His purchase prices were between $2.701 and $3.11, with an estimated average price of $2.88. The impact to his portfolio due to this purchase was 0.03%. His holdings were 2,907,470 shares as of 12/31/2010.
Added: Sterling Bancrp (STL)
Diamond Hill Capital added to his holdings in Sterling Bancrp by 29.74%. His purchase prices were between $8.71 and $10.59, with an estimated average price of $9.59. The impact to his portfolio due to this purchase was 0.02%. His holdings were 585,997 shares as of 12/31/2010.
Added: Ruddick Corp (RDK)
Diamond Hill Capital added to his holdings in Ruddick Corp by 44.97%. His purchase prices were between $34.3 and $39.74, with an estimated average price of $36.49. The impact to his portfolio due to this purchase was 0.02%. His holdings were 180,829 shares as of 12/31/2010.
Added: Energen Corp (EGN)
Diamond Hill Capital added to his holdings in Energen Corp by 43.96%. His purchase prices were between $43.57 and $48.52, with an estimated average price of $45.84. The impact to his portfolio due to this purchase was 0.01%. His holdings were 45,880 shares as of 12/31/2010.
Added: First Ca Finl (FCAL)
Diamond Hill Capital added to his holdings in First Ca Finl by 50.38%. His purchase prices were between $2.34 and $2.87, with an estimated average price of $2.51. The impact to his portfolio due to this purchase was less than 0.01%. His holdings were 139,151 shares as of 12/31/2010.
New Purchase: Eog Res Inc (EOG, Financial)
Diamond Hill Capital initiated holdings in Eog Res Inc. His purchase prices were between $88.29 and $101.33, with an estimated average price of $93.64. The impact to his portfolio due to this purchase was 0.72%. His holdings were 620,439 shares as of 12/31/2010.
New Purchase: Broadridge Finl (BR, Financial)
Diamond Hill Capital initiated holdings in Broadridge Finl. His purchase prices were between $20.59 and $22.88, with an estimated average price of $21.75. The impact to his portfolio due to this purchase was 0.14%. His holdings were 489,845 shares as of 12/31/2010.
New Purchase: Greatbatch Inc (GB, Financial)
Diamond Hill Capital initiated holdings in Greatbatch Inc. His purchase prices were between $21.75 and $24.9, with an estimated average price of $23.04. The impact to his portfolio due to this purchase was 0.1%. His holdings were 324,670 shares as of 12/31/2010.
New Purchase: Teva Pharm Adr (TEVA, Financial)
Diamond Hill Capital initiated holdings in Teva Pharm Adr. His purchase prices were between $48.75 and $54.7, with an estimated average price of $51.74. The impact to his portfolio due to this purchase was 0.06%. His holdings were 97,413 shares as of 12/31/2010.
New Purchase: B&g Foods Cl-a (BGS, Financial)
Diamond Hill Capital initiated holdings in B&g Foods Cl-a. His purchase prices were between $10.69 and $13.81, with an estimated average price of $12.48. The impact to his portfolio due to this purchase was 0.05%. His holdings were 280,200 shares as of 12/31/2010.
New Purchase: Ishars-rs 1k Vl (IWD, Financial)
Diamond Hill Capital initiated holdings in Ishars-rs 1k Vl. His purchase prices were between $58.94 and $64.88, with an estimated average price of $61.95. The impact to his portfolio due to this purchase was 0.02%. His holdings were 22,142 shares as of 12/31/2010.
New Purchase: Hcc Ins Hldgs (HCC, Financial)
Diamond Hill Capital initiated holdings in Hcc Ins Hldgs. His purchase prices were between $25.83 and $29.09, with an estimated average price of $27.76. The impact to his portfolio due to this purchase was 0.01%. His holdings were 19,270 shares as of 12/31/2010.
Reduced: Dominion Res Va (D)
Diamond Hill Capital reduced to his holdings in Dominion Res Va by 75.34%. His sale prices were between $41.53 and $44.92, with an estimated average price of $43.14. The impact to his portfolio due to this sale was -1.41%. Diamond Hill Capital still held 854,248 shares as of 12/31/2010.
Reduced: Suntrust Bks (STI)
Diamond Hill Capital reduced to his holdings in Suntrust Bks by 94.82%. His sale prices were between $23.36 and $29.66, with an estimated average price of $26. The impact to his portfolio due to this sale was -0.37%. Diamond Hill Capital still held 54,323 shares as of 12/31/2010.
Reduced: King Pharmaceut (KG)
Diamond Hill Capital reduced to his holdings in King Pharmaceut by 62.56%. His sale prices were between $9.97 and $14.22, with an estimated average price of $13.76. The impact to his portfolio due to this sale was -0.37%. Diamond Hill Capital still held 1,228,042 shares as of 12/31/2010.
Reduced: Cimarex Energy (XEC)
Diamond Hill Capital reduced to his holdings in Cimarex Energy by 29.65%. His sale prices were between $68.4 and $89.85, with an estimated average price of $80.62. The impact to his portfolio due to this sale was -0.29%. Diamond Hill Capital still held 609,106 shares as of 12/31/2010.
Reduced: Airtran Hldgs (AAI)
Diamond Hill Capital reduced to his holdings in Airtran Hldgs by 44.29%. His sale prices were between $7.33 and $7.5, with an estimated average price of $7.42. The impact to his portfolio due to this sale was -0.13%. Diamond Hill Capital still held 1,746,401 shares as of 12/31/2010.
Reduced: Corrections Crp (CXW)
Diamond Hill Capital reduced to his holdings in Corrections Crp by 37.32%. His sale prices were between $24.12 and $26.71, with an estimated average price of $25.25. The impact to his portfolio due to this sale was -0.1%. Diamond Hill Capital still held 504,736 shares as of 12/31/2010.
Reduced: Molson Coors-b (TAP)
Diamond Hill Capital reduced to his holdings in Molson Coors-b by 69.77%. His sale prices were between $46.48 and $50.93, with an estimated average price of $48.97. The impact to his portfolio due to this sale was -0.09%. Diamond Hill Capital still held 62,760 shares as of 12/31/2010.
Reduced: Toro Co (TTC)
Diamond Hill Capital reduced to his holdings in Toro Co by 56.62%. His sale prices were between $55.72 and $64.38, with an estimated average price of $59.23. The impact to his portfolio due to this sale was -0.08%. Diamond Hill Capital still held 71,635 shares as of 12/31/2010.
Reduced: Carters Inc (CRI)
Diamond Hill Capital reduced to his holdings in Carters Inc by 51.72%. His sale prices were between $24.61 and $32.58, with an estimated average price of $28.91. The impact to his portfolio due to this sale was -0.07%. Diamond Hill Capital still held 185,970 shares as of 12/31/2010.
Reduced: Southwestrn Ene (SWN)
Diamond Hill Capital reduced to his holdings in Southwestrn Ene by 20.82%. His sale prices were between $32.73 and $38.42, with an estimated average price of $35.72. The impact to his portfolio due to this sale was -0.06%. Diamond Hill Capital still held 489,659 shares as of 12/31/2010.
Reduced: Hornbeck Offshr (HOS)
Diamond Hill Capital reduced to his holdings in Hornbeck Offshr by 39.74%. His sale prices were between $18.88 and $23.39, with an estimated average price of $21.36. The impact to his portfolio due to this sale was -0.05%. Diamond Hill Capital still held 302,135 shares as of 12/31/2010.
Reduced: Steris Corp (STE)
Diamond Hill Capital reduced to his holdings in Steris Corp by 32.95%. His sale prices were between $32.82 and $37.83, with an estimated average price of $35.16. The impact to his portfolio due to this sale was -0.04%. Diamond Hill Capital still held 187,618 shares as of 12/31/2010.
Reduced: Mvc Capital Inc (MVC)
Diamond Hill Capital reduced to his holdings in Mvc Capital Inc by 56.92%. His sale prices were between $12.81 and $15.12, with an estimated average price of $13.73. The impact to his portfolio due to this sale was less than 0.01%. Diamond Hill Capital still held 19,040 shares as of 12/31/2010.
Sold Out: Leucadia Natl (LUK)
Diamond Hill Capital sold out his holdings in Leucadia Natl. His sale prices were between $23.45 and $29.52, with an estimated average price of $26.63.
Sold Out: Wilmington Trst (WL)
Diamond Hill Capital sold out his holdings in Wilmington Trst. His sale prices were between $3.92 and $8.77, with an estimated average price of $5.42.
Sold Out: Hain Celestial (HAIN)
Diamond Hill Capital sold out his holdings in Hain Celestial. His sale prices were between $23.68 and $28.33, with an estimated average price of $26.07.
Sold Out: Jakks Pacific (JAKK)
Diamond Hill Capital sold out his holdings in Jakks Pacific. His sale prices were between $17.46 and $19.82, with an estimated average price of $19.12.
Sold Out: Huntington Bancshares Inc. Non Cumulativ (HBANP)
Diamond Hill Capital sold out his holdings in Huntington Bancshares Inc. Non Cumulativ. His sale prices were between $1056 and $1100, with an estimated average price of $1082.26.
Sold Out: Affil Managers (AMG)
Diamond Hill Capital sold out his holdings in Affil Managers. His sale prices were between $79.07 and $101.86, with an estimated average price of $90.32.
