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3 Diamond Hill Mutual Funds to Boost Your Returns

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Diamond Hill Capital Management, Inc. a subsidiary of Diamond Hill Investment Group, provides mutual funds that aim for long-term growth by conducting research and practicing disciplined investment strategies. Diamond Hill mutual funds consist of equity options targeting undervalued companies, fixed-income funds focusing on high-quality bonds for returns, and balanced funds combining equities and bonds to ensure diversification. These aspects together make Diamond Hill mutual funds an attractive investment option.

Investing in Diamond Hill mutual funds seems to be judicious as of now. Also, mutual funds, in general, diversify their portfolios without several commission charges that are mainly associated with stock purchases and trim transaction costs (read more: Mutual Funds: Advantages, Disadvantages, and How They Make Investors Money).

We have, thus, chosen three Diamond Hill mutual funds that investors should buy now for the long term. These funds possess a Zacks Mutual Fund Rank #1 (Strong Buy) or 2 (Buy), have positive three-year and five-year annualized returns, minimum initial investments within $5000, and expense ratios considerably lower than the category average. So, these funds have provided a comparatively strong performance along with lower fees.

Diamond Hill Long-Short (DHLSX - Free Report) fund invests most of its net assets by investing in equity securities of domestic companies irrespective of their market capitalization, which its advisors' believe are undervalued, and selling short equity securities of companies that are overvalued. DHLSX advisors evaluate a company's value independent of its current stock price.

Chris Bingaman has served as the lead manager of DHLSX since Apr 29, 2007. Most of the fund’s holdings were in companies like Cash (31.3%), State Street Corp (20.8%) and US Treasury Bonds (6.5%) as of Mar 31, 2024.

DHLSX’s 3-year and 5-year annualized returns are 6.1% and 7.4%, respectively. Its net expense ratio is 1.49%. DHLSX has a Zacks Mutual Fund Rank #1.

To see how this fund performed compared to its category and other 1 and 2 Ranked Mutual Funds, please click here.

Diamond Hill Select (DHLTX - Free Report) fund invests in undervalued U.S. equity securities of any size capitalization. DHLTX advisor’s focus is on determining a company's value independently of its current stock price.

Rick Snowdon has served as the lead manager of DHLTX since Jan 17, 2013. Most of the fund's holdings were in companies like Mr. Cooper Group Inc. (8.1%), American International Group, Inc. (6.5%) and Red Rock Resorts, Inc. (6.4%) as of Mar 31, 2024.

DHLTX's 3-year and 5-year annualized returns are 7.9% and 14.6%, respectively. Its net expense ratio is 0.87%. DHLTX has a Zacks Mutual Fund Rank #1.

Diamond Hill Large Cap Inv (DHLAX - Free Report) fund invests most of its assets in undervalued U.S. equity securities with large market capitalizations, as assessed by the adviser.

Austin Hawley has served as the lead manager of DHLAX since Feb 27, 2015. Most of the fund's holdings were in companies like American International Group, Inc. (4.7%), ConocoPhillips (3.8%) and Bank of America Corp (3.3%) as of Mar 31, 2024.

DHLAX's 3-year and 5-year annualized returns are 4.2% and 9.1%, respectively. Its net expense ratio is 0.96%. DHLAX has a Zacks Mutual Fund Rank #2.

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