Diamond Hill Invt Group Stock Price, News & Analysis

Diamond Hill Investment Group, Inc. (Nasdaq: DHIL) is a public company in the finance and insurance sector that derives its consolidated revenues and net income from investment advisory and fund administration services provided by its wholly owned subsidiary, Diamond Hill Capital Management, Inc. (DHCM). DHCM is a registered investment adviser that invests on behalf of clients through a shared commitment to valuation-driven investment principles, a long-term perspective, capacity discipline and client alignment.

According to company disclosures, Diamond Hill is an independent active asset manager with significant employee ownership. Its investment strategies include differentiated U.S. and international equity, alternative long-short equity and fixed income. Across these areas, the firm emphasizes a valuation-driven approach and a focus on long-term outcomes for clients.

Business model and revenue sources

Diamond Hill states that it sponsors, markets and provides investment advisory and related services to various U.S. and foreign clients, including mutual funds, separate accounts and private investment funds. The company reports that it generates revenue primarily from investment advisory and fund administration fees. These fees are tied to assets managed or advised by DHCM across different vehicles, such as proprietary funds, separately managed accounts, collective investment trusts and other pooled vehicles.

Company communications describe a structure in which Diamond Hill Investment Group, Inc. is the public holding company, while DHCM is the operating subsidiary responsible for portfolio management and client service. The firm highlights non-GAAP metrics such as adjusted net operating profit margin as useful measures of its core asset management activities, reflecting how management evaluates the underlying advisory business.

Investment strategies and asset mix

Diamond Hill reports that its investment strategies span multiple equity and fixed income categories. Disclosures list strategies such as U.S. and non-U.S. equity, alternative long-short equity and fixed income. Within fixed income, the firm has described strategies including Short Duration Securitized Bond, Securitized Credit, Securitized Total Return, Core Fixed Income and Long Duration Treasury.

By strategy, the company has reported assets in areas such as Small Cap, Small-Mid Cap, Mid Cap, Large Cap, Large Cap Concentrated, Select, Long-Short, International and Micro Cap equity. Fixed income strategies, including securitized and core bond approaches, represent a meaningful component of total assets. Company commentary in earnings releases notes growth in fixed income strategies and references fixed income assets reaching several billion dollars, alongside U.S. equity outflows in certain periods.

Assets under management and vehicles

Diamond Hill regularly reports combined assets under management (AUM) and assets under advisement (AUA) for DHCM. These assets are allocated across:

• Proprietary funds (including open-end mutual funds, an exchange traded fund and a closed-end registered investment company referred to as the Diamond Hill Securitized Credit Fund)
• Separately managed accounts
• Collective investment trusts
• Other pooled vehicles

Company filings and press releases provide periodic breakdowns of AUM by vehicle and by strategy. These disclosures show how assets are distributed across equity and fixed income categories and between proprietary funds and institutional account structures.

Investment philosophy and operating principles

In multiple public communications, Diamond Hill describes its philosophy as valuation-driven, with a long-term perspective, capacity discipline and client alignment. The firm emphasizes seeking investments selling at a discount to underlying value and having patience to wait for that value to be realized. Management commentary highlights a focus on building lasting value through consistent execution, disciplined capital allocation and continued investment in areas of competitive strength.

The company also notes that it is an independent active asset manager with significant employee ownership, which it associates with alignment between employees and clients. This ownership structure is presented as part of the firm’s approach to client alignment and long-term orientation.

Capital allocation and shareholder returns

Diamond Hill’s public releases describe a capital allocation framework that includes regular quarterly cash dividends and share repurchases. The board of directors has repeatedly approved quarterly dividends per common share, and the company has reported special dividends in certain periods. It has also disclosed repurchase activity for common shares and, at times, authorization of repurchase programs with specified dollar limits and expiration dates.

Management commentary links this capital return activity to the firm’s broader approach to capital allocation and shareholder value, referencing total capital returned to shareholders through dividends and repurchases over various reporting periods.

Corporate structure and governance

Diamond Hill Investment Group, Inc. is incorporated in Ohio. The company has disclosed that its board of directors can adjust the number of directors within specified limits and that independent directors serve on key committees, including the Audit Committee, Compensation Committee and Nominating and Governance Committee. Public filings describe the appointment of additional independent directors with extensive asset management and governance experience, and outline director compensation practices, including cash retainers and restricted stock awards.

The company also discloses executive employment agreements for certain senior leaders. These agreements can include base salary, target annual cash incentive awards, long-term incentive equity awards, and restricted stock grants, along with severance and change-in-control provisions. Such contracts typically contain non-competition, non-solicitation, confidentiality and non-disparagement covenants.

Planned acquisition by First Eagle Investments

On December 10, 2025, Diamond Hill Investment Group, Inc. entered into an Agreement and Plan of Merger with First Eagle Investment Management, LLC and an Ohio merger subsidiary. Under this agreement, the merger subsidiary will merge with and into Diamond Hill, and Diamond Hill will survive as a wholly owned subsidiary of First Eagle, subject to the satisfaction of closing conditions described in the merger agreement.

At the effective time of the merger, each issued and outstanding Diamond Hill common share (subject to specified exceptions) is expected to be converted into the right to receive a cash amount per share, as set forth in the merger agreement, subject to required tax withholding. The company has disclosed that any preferred stock outstanding immediately prior to the effective time would be canceled and retired for no consideration. The board of directors of Diamond Hill unanimously approved the merger agreement, determined that it is fair to and in the best interests of the company and its shareholders, and recommended that shareholders approve and adopt the merger agreement.

The merger is subject to customary closing conditions, including shareholder approval, regulatory clearances and the absence of legal restraints, among others. The merger agreement includes a go-shop period, non-solicitation provisions, termination rights and associated termination fees under specified circumstances. Company communications state that, upon completion of the transaction, Diamond Hill shares will no longer trade on Nasdaq.

Client and fund considerations

In connection with the planned merger, Diamond Hill and First Eagle have agreed to actions related to their mutual fund boards, including the election or appointment of certain trustees. The merger agreement also conditions closing on Diamond Hill obtaining client consents representing a specified percentage of revenue run-rate as of a stated date. These provisions reflect the importance of client relationships and fund governance in the company’s business.

Risk and reporting framework

Diamond Hill’s earnings releases and annual reports include both GAAP and non-GAAP financial measures. Non-GAAP adjustments typically relate to deferred compensation plan liabilities and related economic hedges, the impact of consolidated funds, and certain investment income items. The company explains these adjustments as intended to help readers understand its core operating results and to improve comparability across periods. It also includes cautionary notes regarding forward-looking statements and factors that may cause actual results to differ from expectations.

FAQs about Diamond Hill Investment Group (DHIL)

• What does Diamond Hill Investment Group do?
  Diamond Hill Investment Group, Inc. is a public holding company whose consolidated revenues and net income come from investment advisory and fund administration services provided by its wholly owned subsidiary, Diamond Hill Capital Management, Inc. DHCM manages assets for clients using valuation-driven, long-term investment principles.
• How does Diamond Hill generate revenue?
  The company states that it generates revenue primarily from investment advisory and fund administration fees. These fees are earned for managing and administering assets in mutual funds, separate accounts, collective investment trusts and other pooled vehicles.
• What types of investment strategies does Diamond Hill offer?
  Diamond Hill reports strategies in U.S. and international equity, alternative long-short equity and fixed income. Within these categories, it discloses strategies such as Small Cap, Small-Mid Cap, Mid Cap, Large Cap, Large Cap Concentrated, Select, Long-Short, International, Micro Cap, Short Duration Securitized Bond, Securitized Credit, Securitized Total Return, Core Fixed Income and Long Duration Treasury.
• What is meant by Diamond Hill’s valuation-driven, long-term approach?
  Company communications describe a process focused on seeking investments that trade at a discount to underlying value and maintaining a long-term perspective, with capacity discipline and client alignment. This approach is intended to support patient investing and the pursuit of attractive long-term outcomes.
• What are Diamond Hill’s main investment vehicles?
  Diamond Hill reports managing assets through proprietary funds (including open-end mutual funds, an exchange traded fund and a closed-end registered investment company), separately managed accounts, collective investment trusts and other pooled vehicles. These vehicles serve different client types and implementation needs.
• What is the relationship between Diamond Hill Investment Group and Diamond Hill Capital Management?
  Diamond Hill Investment Group, Inc. is the public parent company. Diamond Hill Capital Management, Inc. is its wholly owned subsidiary and a registered investment adviser that conducts the asset management business, including portfolio management and client service.
• Is Diamond Hill being acquired?
  Diamond Hill has entered into an Agreement and Plan of Merger with First Eagle Investment Management, LLC and an Ohio merger subsidiary. Under this agreement, the merger subsidiary will merge with and into Diamond Hill, and Diamond Hill will become a wholly owned subsidiary of First Eagle if the transaction closes, subject to shareholder approval, regulatory clearances and other customary conditions.
• What happens to DHIL shares if the merger with First Eagle closes?
  Company disclosures state that, at the effective time of the merger, each issued and outstanding Diamond Hill common share (with specified exceptions) will be converted into the right to receive a cash amount per share as described in the merger agreement, and that upon completion of the transaction, Diamond Hill shares will no longer trade on Nasdaq.
• How does Diamond Hill return capital to shareholders?
  Diamond Hill has reported returning capital through regular quarterly cash dividends, special dividends in certain years and repurchases of common shares. The board of directors has also authorized share repurchase programs with defined limits and terms.
• Where is Diamond Hill based?
  Diamond Hill Investment Group, Inc. is incorporated in Ohio and reports its principal offices in Columbus, Ohio, in its SEC filings.