Diamond Hill
Diamond Hill Select Fund
Large-cap
Dec 2024 → Sep 2026
Our archive holds 6 letters from this strategy, behind 7 investment theses and positions in 26 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 initiated a position in Waystar Holding, a leading health care technology company that helps providers manage billing, insurance claims and payments.
Managed care provider Centene was added to the portfolio as we believe margins have a credible path to recovery over the next several years as Medicare reimbursement rates catch up with underlying cost trends across its covered population.
We initiated a position in building materials supplier Martin Marietta following weakness in construction sentiment across residential, nonresidential and infrastructure markets, as well as concerns surrounding a sizable acquisition that increased leverage.
We initiated a position in Transocean, a leading offshore drilling contractor, as constrained industry supply and rising demand create a favorable backdrop for offshore drilling.
We initiated a position in Equifax, a leading credit bureau and provider of data analytics, given the company’s proprietary, difficult-to-replicate data assets, particularly its employment and income database, The Work Number.
We initiated a position in software and technology provider Microsoft given the strength and customer value proposition of its existing products and services, along with its compelling opportunity to create value through investments in AI.
• Amazon, a leading e-commerce and cloud computing company, was added to the portfolio given accelerating revenue growth and strong margins in Amazon Web Services, alongside consistent growth and improving profitability in its commerce business.
Credit reporting, risk analytics and identity solutions provider TransUnion was added to the portfolio when shares declined amid AI disruption concerns.
• Humana, one of the largest Medicare Advantage managed care companies, was added to the portfolio as we believe margins have a clear path to recovery following several years of higher- than-expected medical costs.
We initiated a position in managed care provider Molina Healthcare during the quarter.
Given the fundamental headwinds the company is facing, we exited our position to deploy capital to more attractive opportunities.
Shares of regional bank KeyCorp and coffee chain Starbucks were sold to allocate funds to more attractive opportunities.
Shares of regional bank KeyCorp and coffee chain Starbucks were sold to allocate funds to more attractive opportunities.
Also held
Its investment theses
- Waystar HoldingSep 2026Waystar Holding is a health care technology company with strong retention and long-term growth from automation of revenue cycle processes.
- Equitable HoldingsMar 2026Equitable Holdings is a life and retirement platform that should gain scale, more consistent earnings, and long-term growth from its merger.
- AonMar 2026Aon is a leading insurance broker with high barriers to entry, switching costs, and an attractive growth profile.
- Colgate-PalmoliveSep 2025Colgate-Palmolive is a market leader in attractive sectors like household goods and personal care, and its strong position and product demand present a strategic investment opportunity following recent price declines.
- Berkshire HathawaySep 2025Berkshire Hathaway is a diversified holding company with strong performance, significant cash reserves for future acquisitions, and a strategic opportunity arising from Warren Buffett's upcoming retirement.
- AdobeSep 2025Adobe is the leading provider of creative content software with a strong market position, diverse offerings, and the potential for solid fundamentals despite competition and AI disruption.
- Huntington Ingalls IndustriesDec 2024Huntington Ingalls is a key defense contractor for the US Navy