Diamond Hill Capital Management Portfolio in 2026: Top Holdings & Recent Changes
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Diamond Hill Capital Management continues its disciplined value investing approach, trimming several core positions while making notable additions in its latest 13F filing. Their $19.5B portfolio showcases a balanced strategy across 190 holdings, with significant adjustments signaling caution on financials and healthcare amid broader market rotations.
Portfolio Overview: Disciplined Diversification with Long-Term Conviction
Portfolio Highlights (Q4’2025): - Market Value: $19.5B - Top 10 Holdings: 30.6% - Portfolio Size: 190 +4 - Average Holding Period: 17 quarters - Turnover: 11.6%
Diamond Hill Capital Management maintains a diversified yet conviction-driven portfolio that prioritizes long-term holdings, as evidenced by the impressive 17-quarter average holding period. With turnover at a modest 11.6%, the firm demonstrates patience in its value-oriented strategy, avoiding the churn seen in more speculative funds. The addition of just four new positions brings the total to 190, underscoring a broad diversification approach that mitigates single-stock risk while focusing on quality businesses trading below intrinsic value.
This structure reflects Diamond Hill's classic value discipline: top holdings represent only 30.6% of the $19.5B portfolio, allowing for meaningful exposure without over-concentration. Recent moves show active management, with reductions in legacy winners and builds in select areas like waste services, suggesting a tactical shift toward resilient, cash-generative names in a high-valuation environment.
The low turnover and extended holding periods highlight a strategy built for compounding returns, appealing to patient investors tracking superinvestor moves via 13F filings.
Top Holdings: Trims Across Financials, Boosts in Industrials and Insurance
The portfolio's changes are dominated by reductions in top positions, starting with AIG (American International Group, Inc.) at 4.7% after a Reduce 10.68% trim, followed by BRK-B (Berkshire Hathaway Inc.) at 3.9% with a Reduce 13.71% cut. Healthcare exposure saw adjustments in ABT (Abbott Laboratories) at 3.3% (Reduce 7.75%), while financials like COF (Capital One Financial Corporation) at 3.1% dropped via Reduce 11.77%.
Consumer staples and services also faced trims, including CL (Colgate-Palmolive Company) at 2.9% (Reduce 10.45%) and SYY (Sysco Corporation) at 2.1% (Reduce 10.28%). Tech names weren't spared, with TXN (Texas Instruments Incorporated) at 2.9% reduced by 1.42% and CRM (Salesforce, Inc.) at 2.1% cut 7.37%. Bright spots include AON (Aon plc) at 2.9% via Add 2.08% and a standout WM (Waste Management, Inc.) build to 2.6% with Add 23.47%, signaling conviction in essential services amid economic uncertainty.
These moves across the top 10 illustrate Diamond Hill's hands-on portfolio management, pruning positions that may have reached fair value while scaling into undervalued opportunities.
What the Portfolio Reveals
Diamond Hill's Q4 2025 moves reveal a strategy emphasizing quality businesses with durable moats over high-growth speculation. The heavy reductions in financials like AIG, BRK-B, and COF (over 10% trims each) suggest wariness of sector valuations or interest rate sensitivities, pivoting toward more defensive plays.
- Sector Focus: Balanced exposure with trims in financials (AIG, COF) and healthcare (ABT), but adds in industrials (WM) and insurance-related (AON), favoring recession-resistant operations.
- Risk Management: Low 11.6% turnover and 190 positions promote diversification, while 17-quarter holds prioritize compounding in proven names like consumer staples (CL, SYY).
- Quality Over Growth: Positions in dividend payers and steady earners (TXN, CRM trims notwithstanding) highlight a bias for free cash flow generators trading near intrinsic value.
This approach underscores geographic concentration in U.S. large-caps, with no overt international bets, aligning with a conservative stance in volatile markets.
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Portfolio Concentration Analysis
| Position | Value | % of Portfolio | Recent Change |
|---|---|---|---|
| American International Group, Inc. (AIG) | $925.4M | 4.7% | Reduce 10.68% |
| Berkshire Hathaway Inc. (BRK-B) | $768.9M | 3.9% | Reduce 13.71% |
| Abbott Laboratories (ABT) | $647.7M | 3.3% | Reduce 7.75% |
| Capital One Financial Corporation (COF) | $602.9M | 3.1% | Reduce 11.77% |
| Colgate-Palmolive Company (CL) | $571.6M | 2.9% | Reduce 10.45% |
| Aon plc (AON) | $563.3M | 2.9% | Add 2.08% |
| Texas Instruments Incorporated (TXN) | $559.4M | 2.9% | Reduce 1.42% |
| Waste Management, Inc. (WM) | $510.6M | 2.6% | Add 23.47% |
| Sysco Corporation (SYY) | $419.4M | 2.1% | Reduce 10.28% |
| Salesforce, Inc. (CRM) | $405.5M | 2.1% | Reduce 7.37% |
The table highlights Diamond Hill's measured concentration, with no single holding exceeding 4.7% and the top 10 comprising just 30.6% of the $19.5B portfolio. This diversification tempers risk while allowing conviction bets like the 23.47% add to WM to shine.
Notable is the pattern of trims—eight of ten top holdings reduced, averaging over 8%—suggesting profit-taking on appreciated names. The two adds (AON, WM) represent fresh capital deployment into sectors with strong fundamentals, reinforcing a value discipline that avoids overpaying even for quality.
Investment Lessons from Diamond Hill Capital Management
Diamond Hill's portfolio exemplifies timeless value principles tailored to a diversified, patient framework:
- Trim winners selectively: Reductions in AIG, BRK-B, and others show discipline in rebalancing when valuations stretch, freeing capital for better opportunities.
- Long holding periods drive returns: 17 quarters average underscores conviction—avoid frequent trading to capture compounding in quality businesses.
- Diversify without diluting conviction: 190 positions with top 10 at 30.6% balance risk while sizing meaningfully into moats like WM and AON.
- Focus on resilient cash flows: Adds in essential services (WM) and insurance (AON) prioritize durability over cyclical growth.
- Active monitoring amid low turnover: 11.6% turnover reflects constant vigilance, pruning laggards without chasing momentum.
Looking Ahead: What Comes Next?
With portfolio growth to 190 positions and modest turnover, Diamond Hill appears positioned for opportunistic buys in undervalued sectors. The aggressive WM add 23.47% and AON build suggest interest in industrials and professional services, potentially expanding if market pullbacks create entry points in financials or tech.
Cash deployment could target healthcare recoveries post-ABT trim or consumer staples beyond CL/SYY. In a 2026 environment of moderating rates, their quality focus sets up well for steady returns, monitoring intrinsic values via tools like ValueSense.
FAQ about Diamond Hill Capital Management Portfolio
Q: What are the biggest changes in Diamond Hill's Q4 2025 13F filing?
A: Major reductions hit top holdings like BRK-B (Reduce 13.71%), COF 11.77%, and AIG 10.68%, while standout adds included WM 23.47% and AON 2.08%.
Q: Why does Diamond Hill maintain such a large number of positions?
A: Their 190 holdings reflect a diversified value strategy, with top 10 at just 30.6%, reducing single-stock risk while holding conviction names long-term (17 quarters average).
Q: What sectors does Diamond Hill favor in this portfolio?
A: Financials and healthcare saw trims (AIG, ABT, COF), but industrials (WM), insurance (AON), and staples (CL, SYY) maintain exposure, emphasizing resilient, cash-rich businesses.
Q: How can I track Diamond Hill's portfolio and follow their moves?
A: Use ValueSense's superinvestor tracker at https://valuesense.io/superinvestors/diamond-hill for real-time 13F updates. Note the 45-day reporting lag—filings reflect positions from 45 days prior, so combine with intrinsic value tools for current analysis.
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