Diamond Hill Small-Mid Cap Fund Investor Class (DHMAX)

Overview

The described fund is structured to primarily focus on investing in U.S. equity securities, specifically targeting companies with small to medium market capitalizations. The metric of being 'undervalued' plays a critical role in the selection process for these investments. The fund aims to allocate at least 80% of its net assets towards these types of equities, signifying a strong inclination towards firms that the Adviser predicts have a discrepancy between their market price and intrinsic value. The criterion for small and mid cap categorization aligns with market capitalizations ranging from $500 million to $10 billion or equivalent to the range of companies listed in the Russell 2500 Index at the point of investment. This strategic approach underscores the Adviser's method of assessing value independently of the prevailing stock prices, advocating for a potentially insightful investment philosophy.

Products and Services

• Investment in U.S. Equity Securities:

  The core offering involves the allocation of resources into equity securities of U.S.-based companies with small to medium sizes. This focus on smaller market capitalizations seeks to exploit potential undervaluation, with an investment aim to realize growth as these valuations adjust.

• Focus on Undervalued Small and Mid Cap Companies:

  The service distinguishes itself by concentrating on companies that are seen as undervalued. By establishing a market capitalization range between $500 million and $10 billion, the fund zeroes in on a specific segment of the market that it believes holds overlooked value, particularly those within or akin to the Russell 2500 Index at the time of purchase.

• Independent Valuation Process:

  The Adviser’s investment strategy is pointedly geared towards estimating a company's worth disregarding its current market stock price. This analytical approach intends to identify discrepancies between the price and intrinsic value, offering a foundation for investment decisions. This methodology aspires to generate value for investors by pinpointing growth opportunities through a meticulous valuation process.