Diamond Hill Small Cap Fund

What it bought and sold

• ExitedCimpressJun 2026

  Cimpress, a technology-enabled mass-customization company that makes personalized print and promotional products for small businesses, is a position we had been trimming as the discount to intrinsic value was narrowing and fully exited to initiate our new position in FreightCar America.

• New positionDaktronicsJun 2026

  We initiated a position in Daktronics, a leading provider of LED video displays and digital signage, based on our view that the company has a strong competitive position supported by longstanding customer relationships and proprietary software.

• New positionFreightCar AmericaJun 2026

  We initiated a position in 2Q26 as we believe the company is well positioned to benefit from an aging railcar fleet that will require replacement as well as improving industry pricing.

• New positionInsteel IndustriesJun 2026

  We initiated a position in Insteel Industries, the nation’s largest manufacturer of steel wire reinforcing products for concrete construction.

• New positionInfuSystemJun 2026

  We initiated a position as we believe the company benefits from a difficult-to-replicate payer network, improving profitability driven by operational efficiencies and a favorable product mix, and a strong balance sheet that supports disciplined capital allocation.

• ExitedEnergy RecoveryJun 2026

  Pressure exchange manufacturer Energy Recovery was sold to allocate funds to more attractive opportunities.

• New positionBioLife SolutionsJun 2026

  We initiated a position as we believe the company enjoys a distinct advantage over other players in the space, as switching providers can be difficult due to validation requirements, regulatory filings and manufacturing processes.

Also held

• Astrana Health
• Magnolia Oil & Gas
• Ryman Hospitality Properties
• United States Lime & Minerals
• Silvercrest Asset Management
• Ducommun

Its investment theses

• Insteel IndustriesJun 2026Insteel Industries is a steel wire reinforcing products manufacturer positioned to benefit from infrastructure and data center spending, with a stronger competitive position and debt-free balance sheet.
• BioLife SolutionsJun 2026BioLife Solutions supplies essential cell therapy materials and has a distinct advantage from regulatory and switching barriers.
• InfuSystemJun 2026InfuSystem provides infusion pump support services with a hard-to-replicate payer network, improving profitability, and a strong balance sheet.
• FreightCar AmericaJun 2026FreightCar America manufactures railcars and benefits from fleet replacement demand, improving pricing, and vertically integrated cost and delivery advantages.
• DaktronicsJun 2026Daktronics is a leading LED displays provider with a strong competitive position, improving leadership and governance, and financial flexibility.
• DucommunMar 2026Ducommun is an aerospace and defense manufacturer benefiting from defense spending growth, pricing power and margin expansion.
• Oil-DriMar 2026Oil-Dri is a branded and private label cat litter and sorbent materials company with a premiumization strategy and defensible moats.
• Proficient Auto LogisticsMar 2026Proficient Auto Logistics is a large US auto transport consolidator with a cost advantage, strong balance sheet and high-quality management.
• Knowles Corp.Mar 2026Knowles Corp. is a specialty electronic components manufacturer with a higher-margin portfolio and attractive long-term growth potential.
• LSI IndustriesMar 2026LSI Industries is a commercial and industrial lighting and display solutions company with a resilient model, strong cash generation and disciplined management.

Every letter