Diamond Hill
Diamond Hill Small Mid Cap Fund
Mid-cap
Mar 2025 → Jun 2026
Our archive holds 4 letters from this strategy, behind 5 investment theses and positions in 16 companies. Every quote below is copied verbatim from the letter it came from.
4 letters in 2 years — follow all of Diamond Hill for every strategy.
What it bought and sold
We initiated a position as its services represent a small portion of customers’ overall costs but are deeply embedded in their workflows and critical to their operations, supporting consistent revenue growth, strong margins and sustained pricing power.
- ExitedSS&C TechnologiesJun 2026
Pressure exchanger manufacturer Energy Recovery, diversified provider of tech-enabled services and software to the financial services industry SS&C Technologies and regional commercial bank Webster Financial were sold to allocate funds to more attractive opportunities.
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.
We exited our position in optical networking equipment company Ciena as shares rose amid optimism around demand for optical equipment in AI data center buildouts.
Pressure exchanger manufacturer Energy Recovery, diversified provider of tech-enabled services and software to the financial services industry SS&C Technologies and regional commercial bank Webster Financial were sold to allocate funds to more attractive opportunities.
- ExitedEnergy RecoveryJun 2026
Pressure exchanger manufacturer Energy Recovery, diversified provider of tech-enabled services and software to the financial services industry SS&C Technologies and regional commercial bank Webster Financial were sold to allocate funds to more attractive opportunities.
We initiated a position in managed care provider Centene as we believe managed care margins now have a realistic path to recovery over the next few years as reimbursement rates catch up with underlying cost trends across the insured population.
Given the fundamental headwinds the company is facing, we exited our position to deploy capital to more attractive opportunities.
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.
Also held
Its investment theses
- Verisk AnalyticsJun 2026Verisk Analytics is a leading insurance data and analytics provider with limited competition, embedded workflows, and strong pricing power.
- Huntington Ingalls IndustriesMar 2026Huntington Ingalls Industries is a leading naval shipbuilder with durable defense demand and improving margins.
- Invitation Homes Inc.Dec 2025Invitation Homes Inc. is the largest US single-family rental owner with favorable supply-demand dynamics and long-term growth from higher rents and acquisitions.
- Builders FirstSourceMar 2025Builders FirstSource is well-positioned to benefit from increasing demand in the construction sector due to a single-family home deficit, supported by innovative digital solutions and potential for share buybacks and acquisitions to enhance shareholder value.
- IlluminaMar 2025Illumina is a leader in genetic sequencing with an 80% market share, strong fundamentals, and promising long-term growth potential despite recent share price pressures.