Diamond Hill
Diamond Hill Small Cap Fund
US Small-cap
Mar 2025 → Sep 2026
Our archive holds 6 letters from this strategy, behind 15 investment theses and positions in 29 companies. Every quote below is copied verbatim from the letter it came from.
6 letters in 2 years · follow all of Diamond Hill for every strategy.
What it bought and sold
We exited our position in Utz Brands after shares reached our estimate of intrinsic value following its announced acquisition by Intersnack.
We initiated a position in Bank7, an Oklahoma City-based commercial bank, given the company’s highly profitable, branch- light model and recent acquisition of Century Bank, which we believe should meaningfully enhance earnings.
Mayville Engineering, a leading US contract metal fabricator, was added to the portfolio as we see an attractive opportunity for earnings growth.
Shares of cell and gene therapy products and services supplier BioLife Solutions were sold after the stock price appreciated materially following the acquisition announcement by Regeneron.
We initiated a position given the company’s growing defense exposure, strong backlog and attractive valuation.
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.
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.
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.
We initiated a position in Insteel Industries, the nation’s largest manufacturer of steel wire reinforcing products for concrete construction.
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.
Pressure exchange manufacturer Energy Recovery was sold to allocate funds to more attractive opportunities.
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
Its investment theses
- Mayville EngineeringSep 2026Mayville Engineering is a contract metal fabricator with earnings growth potential from recovering core markets and rising data center demand.
- 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.