Based in Columbus, Ohio, independent and publicly owned
Diamond Hill Capital
Management Inc. (
) is a registered investment adviser that manages the mutual
funds, separate accounts and private investments of institutions,
financial intermediaries and individuals. Deeply driven by
intrinsic value, Diamond Hill's investment model is aligned with
the Graham-Buffett philosophy, investing in companies when their
market prices are at a discount to the firm's projection of
future cash flows.
With the end of the third quarter, Diamond Hill reported a total
of 31 transactions.
Accounting for about half of Diamond Hill's third quarter trade
activity, the firm reduced its stake in 15 companies belonging to
various industries including financial services, consumer goods
and energy, which are among the largest industries represented in
The companies that took the most hit in terms of reductions to
existing Diamond Hill shareholdings include US Bancorp (
) which endured a 99.47 percent decrease of the firm's stake,
Corelogic Inc. (
) at 99.27 percent of the firm's stake and Jarden Corp. (
) at 81.44 percent of the firm's stake.
Diamond Hill also sold all of its shares of five companies:
Liquidity Services Inc. (
), Groupon Inc. (
), Exterran Holdings Inc. (
), Discover Financial Services (DFS) and Bank of America Corp.
Using an interdisciplinary approach to investing, Diamond Hill
looks at several financial models such as cash flow, private
market value and leveraged buyout analyses to determine valuation
of a stock. The firm also considers other factors such as
economics, probability, politics and consumer behavior, including
anything that would "help forecast future cash flows," according
to its website.
In addition to the company's sells mentioned, Diamond Hill
introduced four companies to its portfolio in the third quarter,
as wells as seven cases of add-ons to Diamond Hill's existing
shareholdings. To view details about Diamond Hill's third quarter
trade activity, visit Diamond Hill Capital's GuruFocus Stock
Below are Diamond Hill's largest reduction transactions in dollar
amount for the third quarter. Each description also shows the
GuruFocus Valuation Box Feature, which indicates the stock prices
relative to a few alternative valuation measures.
US Bancorp (USB)
Diamond Hill shed 99.47 percent of its shares of US Bancorp in
the third quarter. From more than 4 million shares in the
previous quarter, Diamond Hill brought its current holding down
to a little over 22,000 shares.
This transaction represented not only the largest in reduction
percentage, but also Diamond Hill's largest sold in dollar amount
for the third quarter; Diamond Hill profited more than $145
million after selling a majority of its USB shares.
View US Bancorp's Valuation Box at the top of the page of it
US Bancorp reported about $352 billion in assets by the end of
the third quarter. Operating 3,086 banking offices in 25 states,
the commercial bank offers services including banking, brokerage,
insurance, investment mortgage, trust and payment services,
according to its website.
Currently selling at a market price of $34.15, US Bancorp has a
market cap of $64.88 billion, a P/E (ttm) ratio of 12, a P/B
ratio of 1.9 and a P/S value of 3.
Both its P/B and P/S ratios are close to three-year highs
according to GuruFocus Stock Analysis.
Exxon Mobil Corp. (XOM)
Diamond Hill made $46,740,214.08 after selling about 507,000 of
its shares of Exxon Mobil. This transaction brought the firm's
shareholding of the company right under 1.4 million shares,
accounting for 26.73 percent of Diamond Hill's stake, which is
the lowest in terms of the firm's reduction percentage for the
Although lowest in percentage, the transaction is Diamond Hill's
second largest in dollar amount for the third quarter.
Diamond Hill first acquired Exxon Mobil in the second quarter of
2010 starting off with about 1.7 million shares. The most
recently-made trade places Diamond Hill at its lowest
shareholding of the company.
Exxon Mobil is an oil and gas company that operates in North
America, South America, Europe, Africa and Asia, under several
brands besides ExxonMobil, such as Esso, Exxon, and Mobil1.
View Exxon Mobil's Valuation Box at the top of the page on
its stock summary.
Currently trading close to its 10-year high at $91.29 per share,
it has a market cap of $425.36 billion, a P/B ratio of 2.57, a
P/S ratio of .87 and a P/E (ttm) ratio close to its one-year high
CoreLogic Inc. (
As Diamond Hill's third largest transaction amount in reductions
for the third quarter, the firm decreased 99.27 percent of its
shares with CoreLogic, profiting about $29 million from the sell.
CoreLogic is a company that provides business and analytical
services - such as credit reporting, direct marketing and default
management, to name a few - to the financial, consumer and
property industries. Based in Irvine, Calif., CoreLogic serves
more than one million clients globally.
View CoreLogic's Valuation Box at the top of the page of its
Selling close to its two-year high at $26.34 per share, CoreLogic
has a market cap of $2.79, a P/E (ttm) ratio of 294.6, a P/B
ratio of 2.2 and a P/S ratio of 2.1.
Both its P/S and P/B ratios are close to three-year highs
according to GuruFocus Stock Analysis.About GuruFocus:
GuruFocus.com tracks the stocks picks and portfolio holdings of
the world's best investors. This value investing site offers
stock screeners and valuation tools. And publishes daily articles
tracking the latest moves of the world's best investors.
GuruFocus also provides promising stock ideas in 3 monthly
newsletters sent to