The updated portfolio of Diamond Hill Capital Management lists 15 stocks, 19 of them new, a total value at $9.28 billion, and a quarter-over-quarter turnover of 6%. The portfolio is currently weighted with top three sectors: financial services at 26.9%, technology at 14% and consumer defensive at 13.5%.
Diamond Hill Capital Management is led by president and CEO R. H. Dillon. In Dillon’s annual letter to shareholders in March 2013, the firm reported these financial results: Revenue was $67 million in 2012 compared with $64 million in 2011 and $41 million in 2007. The firm's assets under management finished the year at $9.4 billion, up from $8.7 billion in 2011 and $4.4 billion in 2007. Diamond Hill’s operating profit margin of 36.7% was slightly ahead of 2011. The company estimated its AUM capacity in the range of $20 to $30 billion. Assets under management as of July 31, 2013, were $10.8 billion.
For the quarter ended June 30, 2013, Diamond Hill Capital reported a 23% increase in revenue at $19,893,096 compared to $16,160,855 a year ago. The net operating income also increased 23% at $7,151,691 for the second quarter of 2013 compared to $5,830,528 in the same quarter a year ago. The firm’s net income increased 42% over the same quarter a year ago. Earnings per share also rose 36% from $1.07 in the same quarter a year ago to $1.45 in the second quarter of 2013.
Diamond Hill Capital made 51 sells and reductions with these six high-impact trades as of June 30, 2013:
Hartford Financial Services Group Inc. (HIG, Financial): Reduced
Impacts Portfolio: -2.03%
Current Shares: 3,880,907
Up 67% over 12 months, Hartford Financial Services Group has a market cap of $13.5 billion; its shares were traded at around $29.95 with a P/B ratio of 0.70.
Guru Action: As of June 30, 2013, Diamond Hill Capital reduced its position by 12.59%, selling 7,388,755 at an average price of $28.84 for a gain of 2.9%.
The firm has averaged a gain of 53% on 11,643,746 shares bought at an average price of $19.42 per share. On shares sold, the firm averaged a gain of 4% on 7,781,889 shares sold at an average price of $28.58 per share.
Track historical pricing, revenue and net income:
Merck & Co. Inc. (MRK, Financial): Sold Out
Impacts Portfolio: -1.6%
Up 9% over 12 months, Merck & Co. has a market cap of $137.86 billion; its shares were traded at around $47.29 with a P/E ratio of 28.10.
Guru Action: As of June 30, 2013, Diamond Hill Capital sold out its position, selling 3,485,551 shares at an average price of $46.81, for a gain of 0.6%.
Diamond Hill’s trading history shows 15 quarters of pure gains.
Track historical pricing, revenue and net income:
Chubb Corp. (CB, Financial): Sold Out
Impacts Portfolio: -0.87%
Up 14% over 12 months, Chubb Corp. has a market cap of $21.33 billion; its shares were traded at around $83.47 with a P/E ratio of 12.00.
Guru Action: As of June 30, 2013, Diamond Hill Capital sold out its position, selling 942,439 shares at an average price of $87.50, for a loss of 4.6%.
Track historical pricing:
Assured Guaranty Ltd. (AGO, Financial): Reduced
Impacts Portfolio: -0.67%
Current Shares: 2,039,184
Up 52% over 12 months, Assured Guaranty Ltd. has a market cap of 3.67 billion; its shares were traded at around $20.20 with a P/E ratio of 13.10.
Guru Action: As of June 30, 2013, Diamond Hill Capital reduced its position by 61.33%, selling 3,234,532 shares at an average price of $21.79, for a loss of 8.2%.
The firm has averaged a gain of 21% on 10,444,969 shares bought at an average price of $16.59 per share. On shares sold, the firm averaged a gain of 4% on 8,405,785 shares sold at an average price of $19.22 per share.
Track historical pricing:
Devon Energy Corp. (DVN, Financial): Reduced
Impacts Portfolio: -0.54%
Current Shares: 2,171,546
Down 3% over 12 months, Devon Energy Corp. has a market cap of $23.13 billion; its shares were traded at around $58.10 with a P/B ratio of 1.20.
Guru Action: As of June 30, 2013, Diamond Hill Capital reduced its position by 30.16%, selling 937,987 shares at an average price of $55.70, for a gain of 2.3%.
The firm has averaged a loss of 23% on 3,257,697 shares bought at an average price of $74.34 per share. On shares sold, the firm averaged a loss of 12% on 2,959,814 shares sold at an average price of $64.95 per share.
Track historical pricing:
Charles Schwab Corp. (SCHW, Financial): Reduced
Impacts Portfolio: -0.44%
Current Shares: 5,741,763
Up 55 % over 12 months, Charles Schwab Corp. has a market cap of $26.65 billion; its shares were traded at around $20.97 with a P/E ratio of 31.00.
Guru Action: As of June 30, 2013, Diamond Hill Capital reduced its position by 29.12%, selling 2,358,786 shares at an average price of $18.48, for a gain of 12.2%.
The firm has averaged a gain of 57% on 8,686,336 shares bought at an average price of $13.21 per share. On shares sold, the firm averaged a gain of 15% on 2,944,573 shares sold at an average price of $18.10 per share.
Track historical pricing:
Diamond Hill manages five long-only equity strategies, three alternative equity strategies and a fixed income strategy.
Here is the complete portfolio of Diamond Hill Capital.
Be sure to read:
1. Diamond Hill Capital's Undervalued Stocks
2. Diamond Hill Capital's Top Growth Companies
3. Diamond Hill Capital's High Yield stocks
4. Stocks that Diamond Hill Capital keeps buying
Use the GuruFocus Value Screen to find 52-Week Lows and discover potentially deep value stocks held by billionaire Guru investors.
GuruFocus Real Time Picks reports the stock purchases and sales that Gurus have made within the prior 2 weeks. The report time lag can be as short as 2 days after the date of the transaction. This feature is for Premium Members only.
If you are not a Premium Member, we invite you for a 7-day Free Trial.
Diamond Hill Capital Management is led by president and CEO R. H. Dillon. In Dillon’s annual letter to shareholders in March 2013, the firm reported these financial results: Revenue was $67 million in 2012 compared with $64 million in 2011 and $41 million in 2007. The firm's assets under management finished the year at $9.4 billion, up from $8.7 billion in 2011 and $4.4 billion in 2007. Diamond Hill’s operating profit margin of 36.7% was slightly ahead of 2011. The company estimated its AUM capacity in the range of $20 to $30 billion. Assets under management as of July 31, 2013, were $10.8 billion.
For the quarter ended June 30, 2013, Diamond Hill Capital reported a 23% increase in revenue at $19,893,096 compared to $16,160,855 a year ago. The net operating income also increased 23% at $7,151,691 for the second quarter of 2013 compared to $5,830,528 in the same quarter a year ago. The firm’s net income increased 42% over the same quarter a year ago. Earnings per share also rose 36% from $1.07 in the same quarter a year ago to $1.45 in the second quarter of 2013.
Diamond Hill Capital made 51 sells and reductions with these six high-impact trades as of June 30, 2013:
Hartford Financial Services Group Inc. (HIG, Financial): Reduced
Impacts Portfolio: -2.03%
Current Shares: 3,880,907
Up 67% over 12 months, Hartford Financial Services Group has a market cap of $13.5 billion; its shares were traded at around $29.95 with a P/B ratio of 0.70.
Guru Action: As of June 30, 2013, Diamond Hill Capital reduced its position by 12.59%, selling 7,388,755 at an average price of $28.84 for a gain of 2.9%.
The firm has averaged a gain of 53% on 11,643,746 shares bought at an average price of $19.42 per share. On shares sold, the firm averaged a gain of 4% on 7,781,889 shares sold at an average price of $28.58 per share.
Track historical pricing, revenue and net income:
Merck & Co. Inc. (MRK, Financial): Sold Out
Impacts Portfolio: -1.6%
Up 9% over 12 months, Merck & Co. has a market cap of $137.86 billion; its shares were traded at around $47.29 with a P/E ratio of 28.10.
Guru Action: As of June 30, 2013, Diamond Hill Capital sold out its position, selling 3,485,551 shares at an average price of $46.81, for a gain of 0.6%.
Diamond Hill’s trading history shows 15 quarters of pure gains.
Track historical pricing, revenue and net income:
Chubb Corp. (CB, Financial): Sold Out
Impacts Portfolio: -0.87%
Up 14% over 12 months, Chubb Corp. has a market cap of $21.33 billion; its shares were traded at around $83.47 with a P/E ratio of 12.00.
Guru Action: As of June 30, 2013, Diamond Hill Capital sold out its position, selling 942,439 shares at an average price of $87.50, for a loss of 4.6%.
Track historical pricing:
Assured Guaranty Ltd. (AGO, Financial): Reduced
Impacts Portfolio: -0.67%
Current Shares: 2,039,184
Up 52% over 12 months, Assured Guaranty Ltd. has a market cap of 3.67 billion; its shares were traded at around $20.20 with a P/E ratio of 13.10.
Guru Action: As of June 30, 2013, Diamond Hill Capital reduced its position by 61.33%, selling 3,234,532 shares at an average price of $21.79, for a loss of 8.2%.
The firm has averaged a gain of 21% on 10,444,969 shares bought at an average price of $16.59 per share. On shares sold, the firm averaged a gain of 4% on 8,405,785 shares sold at an average price of $19.22 per share.
Track historical pricing:
Devon Energy Corp. (DVN, Financial): Reduced
Impacts Portfolio: -0.54%
Current Shares: 2,171,546
Down 3% over 12 months, Devon Energy Corp. has a market cap of $23.13 billion; its shares were traded at around $58.10 with a P/B ratio of 1.20.
Guru Action: As of June 30, 2013, Diamond Hill Capital reduced its position by 30.16%, selling 937,987 shares at an average price of $55.70, for a gain of 2.3%.
The firm has averaged a loss of 23% on 3,257,697 shares bought at an average price of $74.34 per share. On shares sold, the firm averaged a loss of 12% on 2,959,814 shares sold at an average price of $64.95 per share.
Track historical pricing:
Charles Schwab Corp. (SCHW, Financial): Reduced
Impacts Portfolio: -0.44%
Current Shares: 5,741,763
Up 55 % over 12 months, Charles Schwab Corp. has a market cap of $26.65 billion; its shares were traded at around $20.97 with a P/E ratio of 31.00.
Guru Action: As of June 30, 2013, Diamond Hill Capital reduced its position by 29.12%, selling 2,358,786 shares at an average price of $18.48, for a gain of 12.2%.
The firm has averaged a gain of 57% on 8,686,336 shares bought at an average price of $13.21 per share. On shares sold, the firm averaged a gain of 15% on 2,944,573 shares sold at an average price of $18.10 per share.
Track historical pricing:
Diamond Hill manages five long-only equity strategies, three alternative equity strategies and a fixed income strategy.
Here is the complete portfolio of Diamond Hill Capital.
Be sure to read:
1. Diamond Hill Capital's Undervalued Stocks
2. Diamond Hill Capital's Top Growth Companies
3. Diamond Hill Capital's High Yield stocks
4. Stocks that Diamond Hill Capital keeps buying
Use the GuruFocus Value Screen to find 52-Week Lows and discover potentially deep value stocks held by billionaire Guru investors.
GuruFocus Real Time Picks reports the stock purchases and sales that Gurus have made within the prior 2 weeks. The report time lag can be as short as 2 days after the date of the transaction. This feature is for Premium Members only.
If you are not a Premium Member, we invite you for a 7-day Free Trial.
