Diamond Hill Small-Mid Cap Fund Institutional Class (DHMIX)

Overview

The fund is designed for investors seeking to diversify their investment portfolio through exposure to U.S. equity securities, specifically targeting small and medium market capitalizations. By focusing on companies that are considered undervalued, the fund aims to capitalize on the potential for significant growth. These companies typically have market capitalizations ranging from $500 million to $10 billion, aligning with or within the range of those included in the Russell 2500 Index at the time of purchase. The Adviser's strategy centers on evaluating a company's intrinsic value independently of its current market price, searching for investment opportunities where the market may not fully recognize the company's potential.

Products and Services

• Investment in U.S. Small and Mid Cap Equities

The fund specializes in investing a significant portion of its assets in equity securities of U.S. companies with small to medium market capitalizations. These investments are selected based on a rigorous assessment of their valuation, aiming to identify stocks that are undervalued by the market. This approach is intended to generate higher returns by investing in companies that have the potential for substantial growth.

• Market Capitalization Focus

Investments target companies with market capitalizations between $500 million and $10 billion, or those within the range of market capitalizations included in the Russell 2500 Index at the time of purchase. This criteria helps in identifying companies that are not too small to carry high risk but are not so large that their growth potential is limited.

• Value-Based Investment Strategy

The fund's investment approach emphasizes the importance of valuing a company beyond its current stock price. By conducting independent evaluations of a company's worth, the Adviser seeks to discover investment opportunities that the market might have overlooked. This method involves a detailed analysis of the company's fundamentals, market position, and growth prospects to ensure that investments are made in companies that are likely undervalued by the market.