Diamond Hill Capital Management Q1 2026 13F Holdings and Activity Report

I. Institutional Overview

The institutional "psychological portrait" that emerges from this data is one of prudent transition and value-oriented opportunism . Diamond Hill has historically been associated with a fundamental, bottom-up investment style, often seeking companies with durable competitive advantages and attractive valuations. In the current period, we see a firm that is actively pruning long-held positions—some held for over a decade—to make room for massive increases in high-quality growth and defensive consumer staples. This suggests a management team that is wary of the current market cycle's maturity and is seeking to upgrade the "quality" of its capital.

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

II. Sector Allocation Analysis

The increasing weight in Consumer Staples is a classic defensive signal. When an institution of this size moves capital into names like Kimberly-Clark, it often signals a belief that the economic cycle is entering a "late-stage" phase where earnings certainty becomes more valuable than raw growth potential. Conversely, the 13.95% weight in Technology is not a broad-based bet on the entire sector but a concentrated play on dominant platforms. The shift from "semiconductors" (evidenced by the 36% reduction in Texas Instruments) toward "software and services" (evidenced by the 400% increase in Microsoft) suggests that Diamond Hill believes the "hardware phase" of the current tech cycle—perhaps driven by AI infrastructure—is maturing, and the "application and platform phase" is where the next leg of value will be realized.

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

III. Top 10 Holdings Deep Dive

Despite a significant 20.71% reduction in shares this quarter, AIG remains the largest single position in the Diamond Hill portfolio, with a weight of 4.04% . This holding is the definition of a "conviction value play," having been in the portfolio since late 2018. The decision to trim the position likely stems from a combination of risk management and profit-taking. AIG has undergone a massive multi-year restructuring, spinning off life insurance units and focusing on general insurance. The reduction suggests that Diamond Hill believes the "easy money" from the restructuring thesis has been made, and they are now right-sizing the position to prevent it from becoming an over-concentrated risk. However, the fact that it remains the #1 holding indicates a continued belief in the company’s fundamental valuation and its ability to return capital through buybacks and dividends. It is a "core allocation" that is currently being "harvested" rather than abandoned.

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

IV. Major Buys/Additions

The addition of over 818,000 shares of Microsoft, an estimated investment of $303 million , is the most significant tactical shift in the portfolio. This is a "growth acceleration bet." For a firm with a value heritage, buying Microsoft at its current scale suggests they no longer view it as a "pricey tech stock" but as an "essential utility of the digital age." The motivation likely stems from Microsoft’s dominant position in enterprise cloud (Azure) and its early lead in monetizing generative AI. By increasing this position by nearly 400%, Diamond Hill is signaling that they believe Microsoft’s earnings power is still being underestimated by the market, or that its risk-adjusted return profile is superior to the traditional value stocks they are selling.

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 reduction of $228 million in Texas Instruments is a major "strategic retreat." Having held the stock for 8 years, Diamond Hill is significantly backing away from one of the stalwarts of the semiconductor industry. The motivation here is likely a "valuation and cycle" judgment. Texas Instruments is heavily exposed to industrial and automotive markets, which are notoriously cyclical. By cutting the position by 36%, the firm is signaling that they believe the analog chip cycle has peaked or that the company’s growth will be sluggish compared to the software giants they are now favoring. It is a "profit-taking" move on a long-term winner to fund new ideas.

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

Incompleteness of Data : The 13F report only discloses long equity positions . It does not show short positions, cash holdings, bonds, international stocks (not listed on US exchanges), or derivative positions like put and call options. Therefore, we are only seeing one side of Diamond Hill’s balance sheet. For all we know, they could be hedging their large Microsoft position with options, or they could have a massive cash pile not reflected in the $15.99 billion equity total. 3. Confidential Treatment : Occasionally, institutions receive SEC approval to omit certain holdings from their public 13F filings to avoid revealing a sensitive ongoing accumulation strategy. There may be "hidden" moves not visible in this data. 4. Snapshot vs. Process : A 13F is a "still photo" of a moving train. It shows where the institution ended the quarter, but not the intra-quarter volatility or the average price at which they bought or sold.

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.