Understanding Edge

Long-Short Investing: A Straightforward Approach in a Complex Environment

Volatility in the tech space, meme stocks and a rising rate environment — Long-Short PM Nate Palmer, CFA, discusses these topics and more in our latest podcast.

Carefully consider the Fund’s investment objectives, risks and expenses. This and other important information are contained in the Fund’s prospectus and summary prospectus, which are available at diamond-hill.com or calling 888.226.5595. Read carefully before investing. Diamond Hill Capital Management, Inc., a registered investment adviser, serves as Investment Adviser to the Diamond Hill Funds and is paid a fee for its services. Not FDIC insured | No bank guarantee | May lose value

Risk disclosure: The portfolio uses short selling which incurs significant additional risk. Theoretically, stocks sold short have the risk of unlimited losses. Overall equity market risks may affect the portfolio’s value.

For standardized performance, expenses and important information, click here.

Click here to view a complete list of holdings for the Long-Short Fund as of 31 March 2023.

The Diamond Hill Funds are distributed by Foreside Financial Services, LLC (Member FINRA).

Russell 1000 Index measures the performance of roughly 1,000 US large-cap companies. Bloomberg US Treasury Bills 1-3 Month Index measures the performance of US Treasury bills with time to maturity between 1 and 3 months. The indexes are unmanaged, market capitalization weighted, include net reinvested dividends, do not reflect fees or expenses (which would lower the return) and are not available for direct investment. Index data source: London Stock Exchange Group PLC and Bloomberg Services Limited. See diamond-hill.com/disclosures/ for full disclaimers.

The views expressed are those of the speakers as of April 2023 and are subject to change without notice. These opinions are not intended to be a forecast of future events, a guarantee of future results or investment advice. Investing involves risk, including the possible loss of principal.

 

Bond Markets – With Great Volatility Comes Great Opportunity

After a quick start to the year, fixed income markets slowed in February as a disconnect between markets and the Fed reintroduced volatility. Learn more in our recent podcast.

Bloomberg US Aggregate Bond Index measures the performance of investment grade, fixed-rate taxable bond market and includes government and corporate bonds, agency mortgage-backed, asset-backed and commercial mortgage-backed securities (agency and non-agency). This index is unmanaged, includes net reinvested dividends, does not reflect fees or expenses (which would lower the return) and is not available for direct investment. Index data source: Bloomberg Index Services Limited. See diamond-hill.com/disclosures for a full copy of the disclaimer.

The views expressed are those of the speakers as of March 2023 and are subject to change without notice. These opinions are not intended to be a forecast of future events, a guarantee of future results or investment advice. Investing involves risk, including the possible loss of principal. Past performance is not a guarantee of future results.

Will 2023 Be a Turning Point for Fixed Income Markets?

It’s been a tumultuous two years for fixed income investors — given the market rebound since Q3 2022, are we starting to turn the corner in fixed income markets?

Bloomberg US Aggregate Bond Index measures the performance of investment grade, fixed-rate taxable bond market and includes government and corporate bonds, agency mortgage-backed, asset-backed and commercial mortgage-backed securities (agency and non-agency). The index is unmanaged, includes net reinvested dividends, does not reflect fees or expenses (which would lower the return) and is not available for direct investment. Index data source: Bloomberg Index Services Limited. See diamond-hill.com/disclosures for a full copy of the disclaimer.

The views expressed are those of the speakers as of February 2023 and are subject to change without notice. These opinions are not intended to be a forecast of future events, a guarantee of future results or investment advice. Investing involves risk, including the possible loss of principal. Past performance is not a guarantee of future results.

The State of Real Estate

Real estate and housing markets have changed drastically in today's post-COVID, rising rate environment. Analyst Josh Barber, CFA, breaks down the health of different segments of these markets in our latest podcast.

As of 30 November 2022, Diamond Hill owned equity shares of Amazon.com Inc. As of 31 October 2022, Diamond Hill owned debt in American Tower Corp. and Amazon.com Inc.

The views expressed are those of Diamond Hill as of December 2022 and are subject to change without notice. These opinions are not intended to be a forecast of future events, a guarantee of future results or investment advice. Investing involves risk, including the possible loss of principal. Past performance is not a guarantee of future results.

Data Dependent – Understanding the Fed’s Strategy and What’s To Come

In our final podcast of 2022, get a brief update on the latest Fed meeting, insights on the potential benefits of investing in securitized debt and our latest thoughts about what’s to come in 2023 and beyond.

Bloomberg US Corporate High Yield Index measures the performance of publicly issued non-investment grade USD fixed-rate, taxable and corporate bonds. The index is unmanaged, includes net reinvested dividends, does not reflect fees or expenses (which would lower the return) and is not available for direct investment. Index data source: Bloomberg Index Services Limited. See diamond-hill.com/disclosures for a full copy of the disclaimer.

S&P 500 Index measures the performance of 500 large companies in the US.

Moody’s Bond Ratings are intended to characterize the risk of holding a bond. These ratings, or risk assessments, in part determine the interest that an issuer must pay to attract purchasers to the bonds. The ratings are expressed as a series of letters and digits. Investment Grade is a bond quality rating of AAA, AA, A or BBB.

As of 30 September 2022, Diamond Hill owned debt in Ford Motor Co., General Motors Co. and General Motors Financial Co. As of 30 November 2022, Diamond Hill owned equity shares of General Motors Co.

Risk disclosure: In general, when interest rates rise, fixed income values fall. Mortgage- and asset-backed securities are influenced by factors affecting the housing market and the assets underlying such securities. The securities may decline in value, face valuation difficulties, and become more volatile and/or illiquid. They are also subject to prepayment risk, which occurs when mortgage holders refinance or repay loans sooner than expected, creating an early return of principal to loan holders.

The views expressed are those of Diamond Hill as of December 2022 and are subject to change without notice. These opinions are not intended to be a forecast of future events, a guarantee of future results or investment advice. Investing involves risk, including the possible loss of principal. Past performance is not a guarantee of future results.

Leave Meat Alone – The Trend Toward Plant-Based Alternatives

Hear from analyst Tim Myers, CFA, as he discusses how changing consumer tastes— particularly among younger consumers — are driving growth for plant-based food and beverage companies.

As of 31 October 2022, Diamond Hill owned shares of SunOpta, Inc.

The views expressed are those of the speaker as of November 2022 and are subject to change without notice. These opinions are not intended to be a forecast of future events, a guarantee of future results or investment advice. Investing involves risk, including the possible loss of principal. Past performance is not a guarantee of future results.

Fixed Income: Is There a Light at the End of the Tunnel?

Hear from fixed income portfolio specialist Douglas Gimple as he shares a brief overview of the latest Fed meeting and what it means for investors.

Bloomberg US Aggregate Bond Index measures the performance of investment grade, fixed-rate taxable bond market and includes government and corporate bonds, agency mortgage-backed, asset-backed and commercial mortgage-backed securities (agency and non-agency). Bloomberg US Corporate Bond Index measures the performance of the US investment grade fixed-rate taxable corporate bond market. The indexes are unmanaged, include net reinvested dividends, do not reflect fees or expenses (which would lower the return) and are not available for direct investment. Index data source: Bloomberg Index Services Limited. See diamond-hill.com/disclosures for a full copy of the disclaimer.

S&P 500 Index measures the performance of 500 large companies in the US. 

Risk disclosure: In general, when interest rates rise, fixed income values fall. Mortgage- and asset-backed securities are influenced by factors affecting the housing market and the assets underlying such securities. The securities may decline in value, face valuation difficulties and become more volatile and/or illiquid. They are also subject to prepayment risk, which occurs when mortgage holders refinance or repay loans sooner than expected, creating an early return of principal to loan holders.

As of 31 August 2022, Diamond Hill owned debt in Amazon.com, Inc. As of 31 October 2022, Diamond Hill owned equity shares of Amazon.com, Inc.

The views expressed are those of the speakers as of November 2022 and are subject to change without notice. These opinions are not intended to be a forecast of future events, a guarantee of future results or investment advice. Investing involves risk, including the possible loss of principal. Past performance is not a guarantee of future results.

The Innovations Propelling Construction & Railroads

Construction, mining and railroads may sound a bit stodgy on the surface, but innovations in automation, energy efficiency and operational excellence are propelling these industries into the future. Learn more in our podcast with research analyst Brian Bath, CFA.

As of 30 September 2022, Diamond Hill owned shares of Caterpillar, Inc. and Wabtec Corp.

The views expressed are those of the speaker as of October 2022 and are subject to change without notice. These opinions are not intended to be a forecast of future events, a guarantee of future results or investment advice. Investing involves risk, including the possible loss of principal. Past performance is not a guarantee of future results.

Tech Space Tests Investors’ Resolve, Rewards Patience

Analyst Scott Williams, CFA, discusses what’s happened in the tech space the last 18 months amid market turbulence and where we’re finding value as intrinsic value investors in a sector often dominated by growth businesses.

As of 31 August 2022, Diamond Hill owned shares of Channel Advisor Corp., First Advantage Corp. and Rimini Street, Inc.

The views expressed are those of the speaker as of September 2022 and are subject to change without notice. These opinions are not intended to be a forecast of future events, a guarantee of future results or investment advice. Investing involves risk, including the possible loss of principal. Past performance is not a guarantee of future results.

Bond Market Insights

This year has been particularly challenging for fixed income investors. In this podcast, senior portfolio specialist Douglas Gimple shares his insights on the effect it’s had on fixed income markets.

S&P 500 Index measures the performance of 500 large companies in the US. Bloomberg US Aggregate Bond Index measures the performance of investment grade, fixed-rate taxable bond market and includes government and corporate bonds, agency mortgage-backed, asset-backed and commercial mortgage-backed securities (agency and non-agency). Index data source: Bloomberg Index Services Limited. The indexes are unmanaged, include net reinvested dividends, do not reflect fees or expenses (which would lower the return) and are not available for direct investment. See diamond-hill.com/disclosures for a full copy of the disclaimer. 

The views expressed are those of Diamond Hill as of September 2022 and are subject to change without notice. These opinions are not intended to be a forecast of future events, a guarantee of future results or investment advice. Investing involves risk, including the possible loss of principal. Past performance is not a guarantee of future results.