Diamond Hill
Diamond Hill Long Short Fund
Dec 2024 → Sep 2026
Our archive holds 6 letters from this strategy, behind 4 investment theses and positions in 46 companies. Every quote below is copied verbatim from the letter it came from.
6 letters in 3 years · follow all of Diamond Hill for every strategy.
What it bought and sold
We exited our positions in the following companies as their share prices reached our estimates of intrinsic value.
Shares of Meta Platforms, the world’s largest social media company, outperformed during the quarter, driven by accelerating advertising growth and positive reception of several new consumer AI initiatives.
We initiated a short position in global retailer Ralph Lauren during the quarter, as we believe revenue growth will become increasingly challenged given its reliance on higher average unit prices rather than sales volume growth.
We initiated a position in Procore Technologies, a leading provider of construction management software, given its attractive growth opportunities and improving profitability outlook.
We initiated a position given the company’s broad product portfolio, consistent innovation and strong commercial execution, which we believe position Stryker to continue gaining market share and delivering above-market growth.
Industrial distributor MSC Industrial Direct was added to the short book during the quarter as we believe growth and profitability will face pressure as pricing benefits and accelerated customer purchases fade.
We initiated a position as we believe the market has underappreciated the company’s resilient business model, strong profitability and disciplined capital allocation amid the current chase for revenue growth in data center-related industries.
Shares of financial services firm Morgan Stanley, medical technology company Becton, Dickinson and Company and property and casualty insurer Hartford Insurance Group were sold to allocate funds to more attractive opportunities.
Shares of financial services firm Morgan Stanley, medical technology company Becton, Dickinson and Company and property and casualty insurer Hartford Insurance Group were sold to allocate funds to more attractive opportunities.
Short positions in smart home and security platform provider Alarm.com Holdings, household cleaning products manufacturer Clorox, regional bank Commerce Bancshares, water infrastructure product distributor Core & Main, medical AI platform provider Doximity, cloud-based real estate brokerage platform eXp World Holdings, property and casualty insurer Palomar Holdings and physical operations technology provider Samsara were eliminated as the stock prices approached our estimates of intrinsic value.
Shares of financial services firm Morgan Stanley, medical technology company Becton, Dickinson and Company and property and casualty insurer Hartford Insurance Group were sold to allocate funds to more attractive opportunities.
We exited our position in cloud computing and cybersecurity company Akamai Technologies after the company reported strong 1Q26 results and on the announcement of an acquisition within its cloud infrastructure segment, as we believe this materially changes the company’s revenue outlook moving forward.
We initiated a short position in Iron Mountain, the leading provider of physical document storage, which has been expanding aggressively into data center infrastructure.
Oil and gas exploration and production company Devon Energy was added to the portfolio following its acquisition of previous holding Coterra Energy.
Oil and gas exploration and production company Coterra Energy was eliminated from the portfolio following its acquisition by Devon Energy that closed in 2Q26.
Short positions in smart home and security platform provider Alarm.com Holdings, household cleaning products manufacturer Clorox, regional bank Commerce Bancshares, water infrastructure product distributor Core & Main, medical AI platform provider Doximity, cloud-based real estate brokerage platform eXp World Holdings, property and casualty insurer Palomar Holdings and physical operations technology provider Samsara were eliminated as the stock prices approached our estimates of intrinsic value.
Short positions in smart home and security platform provider Alarm.com Holdings, household cleaning products manufacturer Clorox, regional bank Commerce Bancshares, water infrastructure product distributor Core & Main, medical AI platform provider Doximity, cloud-based real estate brokerage platform eXp World Holdings, property and casualty insurer Palomar Holdings and physical operations technology provider Samsara were eliminated as the stock prices approached our estimates of intrinsic value.
We initiated a short position in value-based retailer Five Below as we believe future growth and earnings power will be challenged as abnormal operating strength from the viral squishy toy trend subsides.
Short positions in smart home and security platform provider Alarm.com Holdings, household cleaning products manufacturer Clorox, regional bank Commerce Bancshares, water infrastructure product distributor Core & Main, medical AI platform provider Doximity, cloud-based real estate brokerage platform eXp World Holdings, property and casualty insurer Palomar Holdings and physical operations technology provider Samsara were eliminated as the stock prices approached our estimates of intrinsic value.
Short positions in smart home and security platform provider Alarm.com Holdings, household cleaning products manufacturer Clorox, regional bank Commerce Bancshares, water infrastructure product distributor Core & Main, medical AI platform provider Doximity, cloud-based real estate brokerage platform eXp World Holdings, property and casualty insurer Palomar Holdings and physical operations technology provider Samsara were eliminated as the stock prices approached our estimates of intrinsic value.
Short positions in smart home and security platform provider Alarm.com Holdings, household cleaning products manufacturer Clorox, regional bank Commerce Bancshares, water infrastructure product distributor Core & Main, medical AI platform provider Doximity, cloud-based real estate brokerage platform eXp World Holdings, property and casualty insurer Palomar Holdings and physical operations technology provider Samsara were eliminated as the stock prices approached our estimates of intrinsic value.
Short positions in smart home and security platform provider Alarm.com Holdings, household cleaning products manufacturer Clorox, regional bank Commerce Bancshares, water infrastructure product distributor Core & Main, medical AI platform provider Doximity, cloud-based real estate brokerage platform eXp World Holdings, property and casualty insurer Palomar Holdings and physical operations technology provider Samsara were eliminated as the stock prices approached our estimates of intrinsic value.
Short positions in smart home and security platform provider Alarm.com Holdings, household cleaning products manufacturer Clorox, regional bank Commerce Bancshares, water infrastructure product distributor Core & Main, medical AI platform provider Doximity, cloud-based real estate brokerage platform eXp World Holdings, property and casualty insurer Palomar Holdings and physical operations technology provider Samsara were eliminated as the stock prices approached our estimates of intrinsic value.
Also held
Its investment theses
- SentinelOneDec 2025SentinelOne is a cybersecurity company with best-in-class endpoint technology poised to keep taking share as the market grows at high single digits.
- Booz Allen HamiltonSep 2025Booz Allen Hamilton is a leading technology consulting firm for the US government, poised for growth amid increasing demand despite recent negative headlines affecting its shares.
- Cooper CompaniesSep 2025Cooper Companies is a medical devices company with strong growth potential in contact lenses and women's health, supported by recent investments and favorable market trends.
- Builders FirstSourceDec 2024Builders FirstSource is a high-quality US lumber and building materials distributor that we believe has temporarily faced macroeconomic challenges