The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:Diamond Hill Enjoying Fruits of Patience Not Rated 0.0 Email Routing List Email & Route  Print Print
Wednesday, May 24, 2006

Diamond Hill Enjoying Fruits of Patience

Reported by Marie Glancy

Diamond Hill Investment Partners has had quite a year, surpassing the $1 billion mark of assets under management in February and hitting $2.18 billion by the end of the first quarter -- a 221 percent increase over the previous year period. Also, last December, the now six-year-old firm launched a Small-Mid Cap Fund to take up where its newly closed Small Cap Fund left off. Chris Welch, formerly of Fiduciary Trust Company International and Nationwide Insurance's mutual fund unit, was brought on board to manage the new offering, and talked with the MFWire last week about Diamond Hill's rising star.

"Generally we don't have an opinion on what's going to happen in the next month or quarter," said Welch, explaining why Diamond Hill's investors should be in it for the fairly long-term. "We model companies over a five-year time horizon."

So far, that time frame seems to be on-target. Diamond Hill was founded in 2000 by current president and CIO Ric Dillon, Welch related, as a publicly-traded company formed around The Bank Stock Group, an existing bank brokerage firm with excess capital. Dillon seized on the "unprecedented" overvaluation of large-caps at the time, and as Diamond Hill's first stocks cleared the three- and five-year marks, Morningstar ratings glowed. In the last two or three years, he said, funds launched in 2000 "got on a lot of people's radar screens."

The apparent result is stellar inflows and the firm's first profitable year in 2005. But Welch maintains Diamond Hill has not altered its slow-and-steady strategy, nor will it. "Our goal is to be in the top quartile of peer funds over five-year periods," he said. Changing with the times, the Long-Short Fund and Select Fund are now invested "heavily" on the large-cap side.

Asked about next steps for Diamond Hill, Welch said one natural possibility would be to go international. However, for a company that considers strong relationships between staff members a key strength, the idea of a leap abroad gives pause. Welch pointed out that he, for example, developed ties with his future Diamond Hill colleagues while employed at Nationwide, and that betting on overseas investments would require adequate familiarity with outside managers.

So far, the Small-Mid Cap Fund that is his particular charge is showing healthy growth -- having risen from $300,000 to $7 million since the beginning of the year -- but is holding a cash position that, at 25-30 percent is larger than its eventual 20 percent target.

Welch and Diamond Hill will give it time. "We really make an effort to remind people of volatility," he said, underscoring a key mantra: "Invest at a discount; achieve a margin of safety."


Stay ahead of the news ... Sign up for our email alerts now

 Do You Recommend This Story?

Return to Top
 News Archives
2024: Q3Q2Q1
2023: Q4Q3Q2Q1
2022: Q4Q3Q2Q1
2021: Q4Q3Q2Q1
2020: Q4Q3Q2Q1
2019: Q4Q3Q2Q1
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Add to My Yahoo!
follow us in feedly

  1. MFDF webinar - Lessons Learned from the Regional Bank Volatility and the Impact on Registered Funds, June 18
  2. IMEA webinar - Snapshot on the Talent Landscape, June 18
  3. 2024 MMI National Accounts Roundable, June 18
  4. MMI webinar - RIA Consolidators: The New Key Accounts?, June 20
  5. MFDF Director Discussion Series - Open Forum (Philadelphia), June 20
  6. MMI webinar - DoL Fiduciary Rule Update: What Are the Implications?, June 21
  7. WE Chicago - Pre-Morningstar Conference reception, June 25
  8. Celebrating 100 Years of the Mutual Fund, June 25
  9. New York YPEM Cornhole Classic, June 25
  10. Morningstar Investment Conference Conference 2024, Jun 26-27
  11. 2024 MMI Institutional Roundtable, June 26
  12. WE PNW Seattle - Pickleball and Networking, June 27
  13. Celebrating 100 Years of the Mutual Fund, July 11
  14. MFDF webinar - Mid-Year Tax Update for Registered Investment Companies, July 16
  15. MFDF Director Discussion Series - Open Forum via Zoom, July 17
  16. MFDF Director Discussion Series - Open Forum (New York), July 23
  17. IMEA Portfolio Construction Roundtable, September 19
  18. MFDF Continuing Regulatory Impacts on Fund Boards program, October 15
  19. 2024 MMI Annual Conference, Oct 15-17
  20. IMEA Philanthropic Day, October 22
  21. IMEA Leadership Summit, October 23
  22. IMEA Star Awards Celebration, October 23
  23. IMEA Marketing Summit, October 24
  24. 5th Annual ETFGI Global ETFs Insight Summit, October 29
  25. MFDF Director Discussion Series - Open Forum (Denver), November 6
  26. MFDF webinar - Digital Assets in the Fund Space (part 2 of 2), November 7

©All rights reserved to InvestmentWires, Inc. 1997-2024
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use