Diamond Hill Capital (Trades, Portfolio) has been quite successful serving its client base, which includes both businesses and individuals. Its return of 4.6% last year was below average for Diamond Hill; double-digit returns are more common in its asset management for others.
In its own portfolio, Diamond Hill bought and sold stock in dozens of companies in the first quarter.
Diamond Hill Capital (Trades, Portfolio) added six new stakes to its portfolio. The acquisition with the greatest impact was the purchase of 417,469 shares of Google Inc (GOOGL, Financial), a Mountain View, California-based Internet company, for an average price of $541.78 per share. That transaction had a 1.61% impact on Diamond Hill’s portfolio.
Google has a market cap of $379.52 billion and an enterprise value of $319.32 billion. It has a P/E of 25.6, a Price/Book of 3.4 and a Price/Sales of 5.6. Fourteen gurus – PRIMECAP Management (Trades, Portfolio), Frank Sands (Trades, Portfolio), Dodge & Cox, First Eagle Investment, Ruane Cunniff (Trades, Portfolio), Tweedy Browne (Trades, Portfolio), Wallace Weitz (Trades, Portfolio), Julian Robertson (Trades, Portfolio), Ron Baron (Trades, Portfolio), Tom Gayner (Trades, Portfolio), Ray Dalio (Trades, Portfolio), Mario Gabelli (Trades, Portfolio), John Burbank (Trades, Portfolio) and Mario Cibelli (Trades, Portfolio) – have shares of Google in their portfolios.
Diamond Hill Capital (Trades, Portfolio) also made new buys in BankUnited Inc (BKU, Financial), BorgWarner Inc (BWA, Financial), Bridge Bancorp Inc (BDGE, Financial), Dolby Laboratories Inc (DLB, Financial) and Comerica Inc (CMA, Financial).
Diamond Hill Capital (Trades, Portfolio) added to its existing stakes in 75 companies in the first quarter, 14 of which are in the firm’s Top 20 stakes (by volume).
Diamond Hill added 1,774,077 shares to its third-largest, Sysco Corp (SYY, Financial), for an average price of $39.4 per share. The purchase had a 0.46% impact on Diamond Hill’s portfolio and raised its stake to more than 6 million shares.
Houston, Texas-based Sysco markets and distributes food products to restaurants, healthcare and educational facilities, hotels and inns, and other foodservice and hospitality businesses.
Sysco has a market cap of $22.65 billion and an enterprise value of $25.28 billion. It has a P/E of 26.0, a Price/Book of 4.3 and a Price/Sales of 0.5. Donald Yacktman (Trades, Portfolio), the Yacktman Focused Fund (Trades, Portfolio), James Barrow (Trades, Portfolio), Ray Dalio (Trades, Portfolio), Joel Greenblatt (Trades, Portfolio) and Meridian Funds (Trades, Portfolio) have shares of Sysco in their portfolios. First Eagle Investment (Trades, Portfolio)and John Hussman (Trades, Portfolio) sold their stakes in Sysco in the first quarter.
Diamond Hill bought 756,866 shares of Microsoft Corp (MSFT, Financial), its eighth-largest stake, for an average price of $43.53 per share. That transaction had a 0.21% impact on Diamond Hill’s portfolio.
Redmond, Washington-based Microsoft develops, manufactures, licenses, supports and sells computer software, consumer electronics and personal computers and services.
Microsoft has a market cap of $384.5 billion and an enterprise value of $320.89 billion. It has a P/E of 19.6, a Price/Book of 4.3 and a Price/Sales of 4.1. Dodge & Cox, Jeff Ubben (Trades, Portfolio), PRIMECAP Management (Trades, Portfolio), James Barrow (Trades, Portfolio), First Eagle Investment, Donald Yacktman (Trades, Portfolio), Steve Mandel (Trades, Portfolio), Yacktman Focused Fund (Trades, Portfolio), Glenn Greenberg (Trades, Portfolio), David Abrams (Trades, Portfolio), Charles Brandes (Trades, Portfolio), Joel Greenblatt (Trades, Portfolio), Tom Gayner (Trades, Portfolio), Ronald Muhlenkamp (Trades, Portfolio), Mario Gabelli (Trades, Portfolio), Ray Dalio (Trades, Portfolio), Ruane Cunniff (Trades, Portfolio), John Keeley (Trades, Portfolio), Wallace Weitz (Trades, Portfolio), David Dreman (Trades, Portfolio), Meridian Funds (Trades, Portfolio), Lee Ainslie (Trades, Portfolio) and John Hussman (Trades, Portfolio) have shares of Microsoft in their portfolios. Frank Sands (Trades, Portfolio) sold his stake in Microsoft in the first quarter.
The other Top 20 stakes in its portfolio to which Diamond Hill added in the first quarter were Twenty-First Century Fox Inc (FOX, Financial), Citigroup Inc (C, Financial), Brown & Brown Inc (BRO, Financial), Willis Group Holdings PLC (WSH, Financial), Vantiv Inc (VNTV), Popular Inc (BPOP), iStar Financial Inc (STAR), American International Group Inc (AIG), Juniper Networks Inc (JNPR), Morgan Stanley (MS), Goodyear Tire & Rubber Co (GT) and Abbott Laboratories (ABT).
Divestitures and reductions
Diamond Hill reduced its holdings in 59 companies in the first quarter. Its most significant reduction was in Devon Energy Corp (DVN), a natural gas and oil producer based in Oklahoma City. Diamond Hill sold 1,962,083 shares of Devon Energy for an average price of $60.98 per share. The sale had a -0.84% impact on Diamond Hill’s portfolio.
Devon Energy has a market cap of $27.75 billion and an enterprise value of $42.67 billion. It has a Price/Book of 1.5 and a Price/Sales of 1.4. First Eagle Investment, Tweedy Browne (Trades, Portfolio), Martin Whitman (Trades, Portfolio), Mario Gabelli (Trades, Portfolio), Ray Dalio (Trades, Portfolio), David Dreman (Trades, Portfolio), Michael Price (Trades, Portfolio) and Ruane Cunniff (Trades, Portfolio) have shares of Devon Energy in their portfolios. George Soros (Trades, Portfolio) sold his stake in the first quarter.
Diamond Hill also sold 1,381,597 shares of Occidental Petroleum Corp (OXY), a Houston-based oil and gas exploration and production company, for an average price of $77.46 per share. The transaction had a -0.83% impact on Diamond Hill’s portfolio.
Occidental Petroleum has a market cap of $59.25 billion and an enterprise value of $63.93 billion. It has a Price/Book of 1.7 and a Price/Sales of 3.0. James Barrow (Trades, Portfolio), Dodge & Cox, Ray Dalio (Trades, Portfolio), Meridian Funds (Trades, Portfolio), Mario Gabelli (Trades, Portfolio), John Keeley (Trades, Portfolio), David Dreman (Trades, Portfolio), First Eagle Investment (Trades, Portfolio)and John Hussman (Trades, Portfolio) have shares of Occidental Petroleum in their portfolios. Joel Greenblatt (Trades, Portfolio) sold his stake in the first quarter.
Diamond Hill sold its stakes in six companies in the first quarter – CareFusion Corp (CFN), Energen Corp (EGN), Denbury Resources Inc (DNR), iShares Russell 1000 Value Index (ETF) [IWD], SPDR S&P 500 ETF (SPY) and Mattel Inc (MAT).
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