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4 / 5 Stars
#47 in Large Value
U.S. News evaluated 325 Large Value Funds. Our list highlights the top-rated funds for long-term investors based on the ratings of leading fund industry researchers.
The fund has returned 22.17 percent over the past year, 13.92 percent over the past three years, and 18.35 percent over the past five years.
|Trailing Returns||Updated 01.31.2014|
|Year to date||-3.7%|
|3 Years (Annualized)||13.9%|
|5 Years (Annualized)||18.4%|
|10 Years (Annualized)||9.2%|
The managers of Diamond Hill Large Cap have quite a bit of confidence in their favorite sectors.
As of February 05, 2014, the fund has assets totaling almost $2.48 billion invested in 50 different holdings. Its portfolio consists primarily of shares of large companies.
Lately, this fund has been falling behind. After playing good defense in 2008 and surging toward the front of the pack in 2009, the fund had a difficult time finding its footing last year. Notably, its 9 percent return fell well short of the performance of its Morningstar peer group as well as the broader market. As of the end of February, the fund's top three holdings--Anadarko Petroleum, Devon Energy, and Occidental Petroleum--were all oil and gas companies. This reflects management's willingness to make sector bets. In fact, roughly 60 percent of the fund's stock portfolio is spread out among just three sectors: energy, healthcare, and financial services. In the latter two sectors, the fund has been focusing on big names such as JPMorgan Chase, Wells Fargo, Pfizer, and Merck. The fund has returned 22.17 percent over the past year and 13.92 percent over the past three years.
Since its 2001 launch, this fund, which looks for strong companies that are trading at a discount, has been a bit erratic. It has finished three years in the bottom 15 percent of its Morningstar category and two years in the top 2 percent. As of the end of January, the fund's trailing five-year returns were nearly identical to those of the S&P 500. The fund has returned 18.35 percent over the past five years.
According to the fund's prospectus: "The fund, under normal market conditions, invests at least 80% of its assets in common stocks of U.S. companies with large market capitalizations that the Adviser believes are undervalued. ... Fundamental research takes into consideration only those factors that are directly related to a company itself, rather than the overall state of the market. The objective is to find companies with solid growth prospects based on company-specific strategies or industry factors. The Adviser thoroughly examines prospective companies' corporate and financial histories and scrutinizes management philosophies, missions and forecasts."
Role in Portfolio
Morningstar call this fund a "core" holding.
A team of three managers runs the fund.
Diamond Hill Large Cap Fund has an expense ratio of 1.06 percent.
Like all stock funds, this one comes with some risks.