Diamond Hill Capital Management, a subsidiary of Diamond Hill Investment Group, Inc. (NASDAQ:  DHIL) as of Dec. 31, 2024, manages $30 billion in assets and follows active, research-driven management with due diligence, ownership mentality, and valuation discipline to deliver long-term returns. It provides investment across four key asset classes: Alternatives, Fixed Income and International Equity, and U.S. Equity, which seeks to outperform benchmarks. Diamond Hill also invests in companies it believes can be bought at a discount to their intrinsic value and have good upside over time. These factors make Diamond Hill an attractive investment.

We have chosen three Diamond Hill mutual funds — Diamond Hill Short Dur Securitized Bd DHEIX, Diamond Hill Long-Short DHLSX and Diamond Hill Select DHLTX — that investors should buy now for the long term. These funds have a Zacks Mutual Fund Rank #1 (Strong Buy) or 2 (Buy), positive three-year and five-year annualized returns, minimum initial investments within $5000 and expense ratios considerably lower than the category average. So, these funds have provided a comparatively stronger performance and carry a lower fee.

Diamond Hill Short Dur Securitized Bd fund invests most of its assets in securitized bond investments. DHEIX advisors aim for an average duration of less than three, but it may exceed three during periods of high volatility in interest rates and spreads. 

Mark M. Jackson has served as the lead manager of DHEIX since June 5, 2016. Most of the fund’s holdings were in companies like Misc Bonds (59.7%), Cash (11.4%) and American International Group, Inc. (1.3%) as of Sept. 30, 2024.

DHEIX’s 3-year and 5-year annualized returns are 4.8% and 4%, respectively. Its net expense ratio is 0.52%. DHEIX has a Zacks Mutual Fund Rank #1.

To see how this fund performed compared to its category and other 1 and 2 Ranked Mutual Funds, please click here.

Diamond Hill Long-Short fund invests most of its net assets by investing in equity securities of domestic companies irrespective of their market capitalization, which its advisors believe are undervalued, and selling short equity securities of companies that are overvalued. DHLSX advisors evaluate a company's value independent of its current stock price.

Chris Bingaman has served as the lead manager of DHLSX since April 30, 2007. Most of the fund’s holdings were in companies like American International Group, Inc. (4.3%), Meta Platforms, Inc. (4.3%) and $Citigroup Inc(C-N)$. (4.3%) as of Sept. 30, 2024.

DHLSX’s 3-year and 5-year annualized returns are 4.3% and 6.2%, respectively. Its net expense ratio is 1.47%. DHLSX has a Zacks Mutual Fund Rank #2.

Diamond Hill Select fund invests in undervalued U.S. equity securities of any size capitalization. DHLTX’s advisors focus is on determining a company's value independently of its current stock price.

Rick Snowdon has served as the lead manager of DHLTX since Jan. 17, 2013. Most of the fund's holdings were in companies like Mr. Cooper Group Inc. (7.8%), American International Group, Inc. (6.4%) and Regal Rexnord Corp (5.8%) as of Sept. 30, 2024.

DHLTX's 3-year and 5-year annualized returns are 6.9% and 13.3%, respectively. Its net expense ratio is 0.87%. DHLTX has a Zacks Mutual Fund Rank #2.

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