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First Eagle Investments acquires Diamond-Hill Investment Group
Do folks know much about Diamond Hill? I don't, but do invest with First Eagle.
The following information was excerpted from Morningstar's Parent Rating (Oct. 14, 2024) for Diamond Hill Capital Management.
"Diamond Hill Capital Management’s clear identity, strong manager ownership, and willingness to close strategies to protect existing investors earn it an Above Average Parent Pillar rating. Current CEO Heather Brilliant has made strides in transforming this Columbus, Ohio-based boutique from a plucky, founder-led mutual fund shop into an institutionally focused operation. Brilliant, who took over in July of 2019—the same year key personnel decamped to a new firm started by founder and former CEO and chairman Ric Dillon—has closed noncore services, such as Diamond Hill's private asset-management business, and hived off strategies that did not fit with the firm's intrinsic value investing ethos, such as its high-yield capabilities."
"Changes at the publicly traded firm are ongoing, but it remains a sound steward. It is devoted to bottom-up,long-term, value-oriented equity and fixed-income investing and has refocused on that core competency since Brilliant (who used to work for Morningstar) arrived. In recent years, the firm has invested in building and promoting its core and short-term fixed-income teams, filing to launch two new strategies for them in 2024. To improve equity analyst recruitment, retention, development, and accountability, the family hired a full-time director of research, who has formalized the research team's processes, upped expectations, attracted experienced new hires, and parted ways with some members who had not adapted to the new standards."
unprofitable public subscale value shops are gone, remaining are all significantly larger (e.g., oakmark) and\or private. DH acquisition was sorta expected, well-run value shops still attractive even after dismal 1.5decades of relative performance. the timing always unpredictable. pzena also bought themselves out from public ownership, although they are backstopped by vanguard AUM.
Comments
for Diamond Hill Capital Management.
"Diamond Hill Capital Management’s clear identity, strong manager ownership, and willingness
to close strategies to protect existing investors earn it an Above Average Parent Pillar rating.
Current CEO Heather Brilliant has made strides in transforming this Columbus, Ohio-based boutique
from a plucky, founder-led mutual fund shop into an institutionally focused operation.
Brilliant, who took over in July of 2019—the same year key personnel decamped to a new firm
started by founder and former CEO and chairman Ric Dillon—has closed noncore services,
such as Diamond Hill's private asset-management business, and hived off strategies
that did not fit with the firm's intrinsic value investing ethos, such as its high-yield capabilities."
"Changes at the publicly traded firm are ongoing, but it remains a sound steward.
It is devoted to bottom-up,long-term, value-oriented equity and fixed-income investing
and has refocused on that core competency since Brilliant (who used to work for Morningstar) arrived.
In recent years, the firm has invested in building and promoting its core and short-term fixed-income teams,
filing to launch two new strategies for them in 2024. To improve equity analyst recruitment,
retention, development, and accountability, the family hired a full-time director of research,
who has formalized the research team's processes, upped expectations, attracted experienced new hires,
and parted ways with some members who had not adapted to the new standards."
DH acquisition was sorta expected, well-run value shops still attractive even after dismal 1.5decades of relative performance. the timing always unpredictable.
pzena also bought themselves out from public ownership, although they are backstopped by vanguard AUM.
https://ritholtz.com/2024/09/transcript-heather-brilliant/