Diamond Hill Capital Management Q4 2025 13F Holdings and Activity Report

I. Institutional Overview

To understand Diamond Hill’s psychological portrait this quarter, one must first look at the trajectory of its assets under management (AUM) and the breadth of its portfolio. A portfolio value of nearly $20 billion places Diamond Hill in the category of "mid-to-large" institutional managers—large enough to have significant market impact and access to top-tier corporate management, yet nimble enough to take meaningful positions in mid-cap companies without the liquidity constraints faced by trillion-dollar behemoths. The count of 190 stocks suggests a philosophy of "diversified conviction." While the firm is not a "closet indexer" (which might hold 500+ stocks), it also avoids the extreme volatility of hyper-concentrated hedge funds that might hold only 15 or 20 names. Instead, Diamond Hill operates with a "best ideas" framework within a diversified structure, ensuring that while individual stock selection drives alpha, the overall portfolio remains resilient against idiosyncratic shocks.

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II. Sector Allocation Analysis

The 24.33% weight in Financials suggests that Diamond Hill remains bullish on the banking and insurance industries' ability to generate capital in a "higher-for-longer" interest rate environment. Unlike growth-oriented funds that view Financials as a "funding source" for tech bets, Diamond Hill views Financials as a primary engine of value. This sector includes insurance giants like AIG and Aon, as well as diversified lenders like Capital One and Bank of America. The logic here is likely rooted in valuation; despite the market's obsession with AI and technology, many financial institutions continue to trade at attractive price-to-earnings (P/E) and price-to-book (P/B) multiples while returning massive amounts of capital to shareholders via buybacks and dividends.

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III. Top 10 Holdings Deep Dive

The remainder of the Top 10 reveals a fascinating mix of sectors. Capital One (COF) at #4 (3.09%) and Aon plc (AON) at #6 (2.89%) reinforce the "Financials" theme. The 23.47% addition to Waste Management (WM) is particularly noteworthy. Waste Management is a "moat" business with inflation-linked pricing power and essential service status. By aggressively increasing this position, Diamond Hill is adding a "defensive offensive" component—a stock that can grow steadily regardless of the macro environment.

Overall, the Top 10 holdings are characterized by "High Quality and Reasonable Valuation." There are no "speculative" names here. Every company is a leader in its respective field with a proven ability to generate free cash flow. The fact that Diamond Hill is trimming 8 out of the top 10 positions suggests they are in a "defensive posture," harvesting gains from the large-cap rally and preparing to deploy that capital into the "Major Buys" we will discuss in the next section.

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IV. Major Buys/Additions

When we look at these buys as a group, a clear pattern emerges: "MedTech and Specialized Financials." Between COO, SOLV, and ZTS (Zoetis), Diamond Hill is making a massive bet on the healthcare ecosystem. Simultaneously, the addition to EQH and the Russell 1000 Value ETF (IWD) shows they are doubling down on the "Value" factor.

The estimated total buy scale of these top 8 additions exceeds $1 billion . This capital was largely recouped from the trims in AIG, BRK.B, and the exit from Caterpillar. This is a textbook example of "Inventory Reallocation." Diamond Hill is not necessarily bringing "new" cash into the market; they are rotating from "fully valued" winners into "undervalued" newcomers. This rotation increases the "offensiveness" of the portfolio by moving capital into stocks with higher "upside to intrinsic value" ratios.

This section shows only part of the complete report. View the app for the full analysis, position-level detail, and quarter-over-quarter tracking.

V. Major Sells and Exits

The "Sell" side of the ledger this quarter is dominated by "Cyclical Harvesting." By exiting or heavily reducing positions in GM, CAT, and Ferguson (FERG), Diamond Hill is pulling back from the "Physical Economy" (cars, construction, plumbing supplies) which has benefited immensely from the post-2020 boom.

Where is that money going? As we saw in Section IV, it is flowing into "Healthcare Innovation" (COO, SOLV) and "Defensive Infrastructure" (Waste Management). This is a classic "late-cycle" maneuver. The firm is selling the stocks that depend on "economic acceleration" and buying the stocks that depend on "secular trends" (aging populations, myopia, waste generation) which are less sensitive to the GDP growth rate.

This section shows only part of the complete report. View the app for the full analysis, position-level detail, and quarter-over-quarter tracking.

VI. Investment Insights and Risk Warnings

Healthcare as the New "Safe Haven" : The firm’s aggressive moves into COO, SOLV, and ZTS suggest a belief that Healthcare offers the best risk-reward profile in an uncertain macro environment. These companies possess "pricing power" and "essential demand," which are the two most important attributes for a value investor during inflationary or volatile periods. 3. Discipline Over Dogma : The exit from Caterpillar and the 64% trim of GM are masterclasses in investment discipline. Many managers "fall in love" with their winners and hold them long after the valuation has become stretched. Diamond Hill’s willingness to walk away from a 250% winner (CAT) or a 1700% winner (COOP) demonstrates a commitment to their "intrinsic value" mandate that is rare in the industry. 4. The SaaS Value Play : The entry into Wix.com is a signal to the market that "Value" and "Tech" are not mutually exclusive. As software companies mature and focus on GAAP profitability and buybacks, they are increasingly entering the "buy zone" for traditional value managers.

This section shows only part of the complete report. View the app for the full analysis, position-level detail, and quarter-over-quarter tracking.

Sources and limitations

This report uses public U.S. Securities and Exchange Commission Form 13F disclosures and structured data maintained by 13F Hub. A 13F filing is a quarter-end snapshot of reportable long positions, is normally published with a delay, and does not disclose every short position, cash balance, bond, derivative, or non-U.S. asset.

Narrative content is prepared from the same-period SEC disclosure and 13F Hub structured data, then checked before publication. This material is for research and education, not personalized investment advice.