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Diamond Hill Capital Management Review

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Diamond Hill Capital Management, Inc.

Columbus, Ohio-based Diamond Hill Capital Management, Inc. is an investment management firm with nearly 50 financial advisors on its staff. This team is collectively responsible for over $19 billion in client assets under management (AUM). The firm has a wide range of investing strategies that focus on various securities-based mutual funds.

A fee-only firm, Diamond Hill earns all of its compensation from charges that clients pay. This differs from a fee-based structure, in which a firm would earn compensation from both client fees and outside sources such as insurance commissions.

Diamond Hill Capital Management Background

Diamond Hill Capital Management has been around since 2000, though the firm’s predecessor company, Banc Stock Group, was founded in 1988. The firm is owned by a combination of its employees and outside investors, with the former claiming 20% of the overall shares and the latter holding the remaining 80%.

Diamond Hill’s team boasts an impressive 48 chartered financial analyst (CFA) designations; this is a certification commonly seen at investment advisory firms, but it's rare to see so many of a firm's advisors hold the certification. There are also eight certified public accountants (CPAs), six certified investment management analysts (CIMAs), five advisors with a certificate in investment performance measurement (CIPM) and one chartered alternative investment analyst (CAIA). All in all, this is a very well-qualified group of advisors.

What Types of Clients Does Diamond Hill Capital Management Accept?

With nearly 3,000 clients to its name, Diamond Hill Capital Management works with a wide variety of client types. While other investment advisors make up the largest percentage of its client base, the firm also maintains relationships with a handful of individuals (both with and without a high net worth), retirement plans, charitable organizations, investment companies, businesses, insurance companies, government entities and pooled investment vehicles.

Diamond Hill Capital Management Minimum Account Size

There is no standard minimum initial investment at Diamond Hill Capital Management. Instead, the firm requires different amounts for each investment strategy.

For its small-cap, small-mid-cap, mid-cap, large-cap, large-cap concentrated, all-cap select and global strategies, the minimum is $10 million. A $25 million minimum is necessary for the firm’s corporate credit, high-yield and core bond strategies. Lastly, the short duration total return strategy calls for a $200 million minimum investment.

Services Offered by Diamond Hill Capital Management

Diamond Hill Capital Management’s services are based solely around investment portfolio management. The firm offers nearly a dozen separate investing strategies that are chosen based on each client’s needs.

Some of the aforementioned strategies are provided to third-party wrap fee program sponsors and unified managed account (UMA) programs. Through these services, the firm gives access to its strategies so its investment advisor clients can then offer them to their own clients.

Diamond Hill Capital Management Investment Philosophy

At the highest level, Diamond Hill Capital Management has nine equity strategies and four fixed-income security strategies. For each of these, the firm adheres to strict rules and philosophies in an attempt to garner long-term success.

  • Treat every investment as a partial ownership interest in that company.
  • Always invest with a margin of safety.
  • Possess a long-term investment temperament.
  • Recognize that market price and intrinsic value tend to converge over a reasonable period of time.

As you might imagine, in order to accommodate its extensive strategies, the firm is open to investing in many different types of securities. These include U.S. and international common stocks, real estate investment trusts (REITs), preferred stocks, investment grade and non-investment grade corporate bonds, U.S. government securities, foreign debt securities, hedge funds, exchange-traded funds (ETFs) and more.

Fees Under Diamond Hill Capital Management

Like its minimums, the fee schedule at Diamond Hill Capital Management is dependent upon the investment strategy your account utilizes. For the firm’s equity strategies, annual fees range from 0.50% to 0.90% of your AUM. For fixed-income strategies, rates vary from 0.18% to 0.60%. In some cases, fees are negotiable.

Diamond Hill’s fees are due on a quarterly basis, in arrears. You will be charged based on the value of your account’s assets on the last business day of the quarter. If you do not elect to have fees deducted directly from your account, the firm will bill you via an invoice.

What to Watch Out For

There are no financial planning services, like retirement planning or estate planning, available through Diamond Hill Capital Management. If financial planning is something you’re looking for, try our financial advisor matching tool to find appropriate options in your area.

In certain situations, Diamond Hill Capital Management may receive performance-based fees from clients. According to the firm’s Form ADV, this means it “can potentially receive higher fees from accounts with a performance-based compensation structure than from those accounts that pay a fixed asset-based fee.” Although this represents a potential conflict of interest, the firm is bound by fiduciary duty to act in clients’ best interests at all times.

Disclosures

Diamond Hill Capital Management’s legal and regulatory record is clean in the eyes of the U.S. Securities and Exchange Commission (SEC).

Opening an Account With Diamond Hill Capital Management

The easiest way to become a client of Diamond Hill Capital Management is to either call the firm at (614) 255-3333 or email its team at info@diamond-hill.com. If you’d rather have an advisor reach out to you, the firm offers a contact form on its website that asks for your first and last name, email address, a phone number and a brief message.

Where Is Diamond Hill Capital Management Located?

Diamond Hill Capital Management has one location in Columbus, Ohio. It can be found at 325 John H. McConnell Boulevard in Suite 200.

Tips for Your Investment Portfolio

  • Before you invest your hard-earned money in the market, a financial advisor might be worth looking into. Finding the right financial advisor that fits your needs doesn’t have to be hard. SmartAsset’s free tool matches you with financial advisors in your area in 5 minutes. If you’re ready to be matched with local advisors that will help you achieve your financial goals, get started now.
  • Don't forget that investing gains outside of a tax-advantaged retirement account are subject to taxation. If you’re unsure what your tax bill might look like, try SmartAsset’s capital gains tax calculator.

How Many Years $1 Million Lasts in Retirement

SmartAsset's interactive map highlights places where $1 million will last the longest in retirement. Zoom between states and the national map to see the top spots in each region. Also, scroll over any city to learn about the cost of living in retirement for that location.

Least
Most
Rank City Housing Expenses Food Expenses Healthcare Expenses Utilities Expenses Transportation Expenses

Methodology To determine how long a $1 million nest egg would cover retirement costs in cities across America, we analyzed data on average expenditures for seniors, cost of living and investment returns.

First, we looked at data from the Bureau of Labor Statistics (BLS) on the average annual expenditures of seniors. We then applied cost of living data from the Council for Community and Economic Research to adjust those national average spending levels based on the costs of each expense category (housing, food, healthcare, utilities, transportation and other) in each city. Using this data, SmartAsset calculated the average cost of living for retirees in the largest U.S. cities.

We assumed the $1 million would grow at a real return (interest minus inflation) of 2%. This reflects the typical return on a conservative investment portfolio. Then, we divided $1 million by the sum of each of those annual numbers to determine how long $1 million would cover retirement expenses in each of the cities in our study. Cities where $1 million lasted the longest ranked the highest in the study.

Sources: Bureau of Labor Statistics (BLS), Council for Community and Economic Research