Diamond Hill
Market insights and commentary from Diamond Hill.
United States5 articlesLast published 6 Oct 2025
EquitiesFixed Income
Research
Diamond HillEquities
Concentration by Design — A Look at the Diamond Hill Large Cap Concentrated Active ETF (DHLX)
Diamond Hill makes the case for intentional portfolio concentration in US large-cap equities, noting that the top 10 Russell 1000 constituents now represent 37% of the index—a four-decade high—and arguing that passive investors bear uncontrolled concentration risk. The paper introduces DHLX, a 20–30 holding, valuation-sensitive active ETF benchmarked to the Russell 1000 Value Index with 89.9% active share, and outlines four rationales for why concentrated high-conviction portfolios can deliver superior long-term returns.
6 Oct 2025
Diamond HillMulti-Asset
Change Is the Only Constant
Diamond Hill's August 2025 commentary examines the shifting composition and independence of the Federal Reserve, covering the departure of Governor Kugler, the nomination of Stephen Miran, the attempted removal of Governor Cook, and the implications for Fed policy. It also highlights the record-large BLS payroll benchmark revision of -911,000 jobs for April 2024–March 2025, and cautions investors against rate prediction as the key driver of portfolio management amid tariff-driven inflation uncertainty.
22 Sep 2025
Diamond HillFixed Income
Mechanics and Benefits of Securitization
Diamond Hill provides a detailed educational primer on securitization, covering its history, deal structuring, tranche subordination, and the four primary credit enhancement mechanisms (excess spread, reserve accounts, overcollateralization, and subordination). The paper illustrates these concepts with real-world examples from Flagship Credit Auto Trust and Ford Motor Credit, demonstrating how securitization allows lower-rated issuers to obtain cheaper funding by leveraging high-quality collateral.
16 Sep 2025
Diamond HillEquities
Portfolio Manager Busts Five Myths About International Investing
Krishna Mohanraj, CFA, addresses five common misconceptions that drive home-country bias—including the sufficiency of U.S. multinationals for global exposure, geopolitical risk, transparency, currency impact, and liquidity—arguing each is overstated or misunderstood. The piece advocates for active, bottom-up international equity investing as a means to enhance portfolio diversification, access underrepresented sectors, and unlock long-term growth opportunities beyond U.S. markets.
25 Jul 2025
Diamond HillEquities
The First 100 Days of Tariffs
Diamond Hill's April 2025 market commentary reviews global equity performance amid US tariff escalation, noting the MSCI ACWI returned +0.9% for the month despite sharp intra-month volatility triggered by "Liberation Day" and the subsequent US-China trade war reaching 145%/125% reciprocal tariffs. The piece covers regional and sector return dispersion, key macro developments across the US, Europe, China, Canada, and Ukraine, and reaffirms Diamond Hill's long-term, value-oriented investment philosophy.
6 May 2025