Richard Greenberg & Jon Hartsel - Diamond Hill Capital Management Inc Portfolio Q2’2025: Top Holdings & Recent Changes
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Richard Greenberg & Jon Hartsel of Diamond Hill Capital Management Inc continue to showcase disciplined, research-driven investing. Their Q2’2025 portfolio demonstrates a dynamic approach to capital allocation, with $21.8 billion spread across 180 positions and notable shifts in several top holdings. This quarter’s moves highlight Diamond Hill’s willingness to recalibrate exposure in financials, healthcare, and consumer staples, reflecting both conviction and risk management.
Portfolio Overview: Strategic Diversification with Targeted Adjustments
Portfolio Highlights (Q2’2025): - Market Value: $21.8B - Top 10 Holdings: 29.8% - Portfolio Size: 180 +5 - Average Holding Period: 18 quarters - Turnover: 8.3%
Diamond Hill’s portfolio remains broadly diversified, with the top 10 holdings comprising just under 30% of total assets—a relatively low concentration compared to many superinvestors. This reflects a deliberate strategy to balance conviction with risk mitigation, especially given the fund’s substantial size and multi-sector exposure.
The addition of five new positions this quarter signals ongoing research and a willingness to adapt as market conditions evolve. With an average holding period of 18 quarters, Diamond Hill demonstrates patience and a long-term orientation, yet the 8.3% turnover rate reveals active management and tactical reallocations when opportunities or risks arise.
Strategically, the fund managers have made meaningful changes in financials, healthcare, and technology, suggesting a nuanced view of sector rotation and valuation. The portfolio is neither overly concentrated nor excessively fragmented, striking a balance that allows for both conviction bets and broad diversification.
Top Holdings Analysis: Defensive Plays and Opportunistic Moves
This quarter’s portfolio is anchored by a mix of insurance, healthcare, technology, and consumer staples, with several positions seeing significant adjustments:
- American International Group 4.6% saw a Reduce 5.85% action, indicating a tactical trim in insurance exposure.
- Abbott Laboratories 3.7% was Reduced by 2.65%, reflecting a cautious stance in healthcare.
- Berkshire Hathaway Inc. (BRK-B) 3.5% received an Add 2.38%, signaling increased confidence in diversified financials and industrials.
- Texas Instruments Incorporated 3.4% was Added by 3.54%, boosting exposure to semiconductors.
- Capital One Financial Corp. 2.8% saw a massive Add 36.68%, marking one of the most aggressive moves this quarter in consumer finance.
- Aon PLC (Cl A) 2.6% was Added by 29.85%, further increasing insurance sector allocation.
- Sysco Corporation 2.4% was Reduced by 4.48%, trimming consumer staples.
- Colgate-Palmolive Company 2.3% saw a Reduce 1.05%, another defensive adjustment.
- Bank of America Corp. 2.2% was Reduced by 22.86%, a notable cut in banking exposure.
- ConocoPhillips 2.2% was Reduced by 7.75%, reflecting caution in energy.
Supplementing these moves, the portfolio’s top 10 holdings also include significant allocations to diversified financials, consumer staples, and technology, with most actions reflecting either moderate trims or targeted increases. The aggressive additions to Capital One and Aon stand out as conviction plays, while reductions in Bank of America and American International Group suggest a recalibration of risk in financials.
What the Portfolio Reveals About Current Strategy
- Quality and Value Focus: Diamond Hill continues to favor established, cash-generative businesses in insurance, healthcare, and technology, balancing growth with defensive characteristics.
- Sector Rotation: The fund managers are tactically adjusting exposure in financials and consumer staples, likely responding to valuation shifts and macroeconomic signals.
- Risk Management: Reductions in banking and insurance positions indicate a cautious approach amid sector-specific uncertainties.
- Long-Term Orientation: An average holding period of 18 quarters underscores patience, while selective turnover allows for opportunistic rebalancing.
- Opportunistic Additions: Large increases in Capital One and Aon suggest high conviction in these names, possibly driven by attractive valuations or improving fundamentals.
Portfolio Concentration Analysis
| Position | Value | % of Portfolio | Recent Change |
|---|---|---|---|
| American International Group | $993.9M | 4.6% | Reduce 5.85% |
| Abbott Laboratories (ABT) | $804.2M | 3.7% | Reduce 2.65% |
| Berkshire Hathaway Inc. (BRK-B) | $763.6M | 3.5% | Add 2.38% |
| Texas Instruments Incorporated | $739.6M | 3.4% | Add 3.54% |
| Capital One Financial Corp. | $619.3M | 2.8% | Add 36.68% |
| Aon PLC (Cl A) | $561.7M | 2.6% | Add 29.85% |
| Sysco Corporation (SYY) | $532.0M | 2.4% | Reduce 4.48% |
| Colgate-Palmolive Company (CL) | $500.4M | 2.3% | Reduce 1.05% |
| Bank of America Corp. | $488.8M | 2.2% | Reduce 22.86% |
| ConocoPhillips (COP) | $487.7M | 2.2% | Reduce 7.75% |
Diamond Hill’s top 10 positions account for 29.8% of the portfolio, illustrating moderate concentration and a clear preference for diversification. The largest position, American International Group, is under 5%, while the rest are tightly clustered between 2.2% and 3.7%. This structure limits single-stock risk and allows the managers to express conviction without overexposure. The table also highlights the dynamic nature of the fund’s management, with several positions seeing meaningful increases or reductions, especially in financials and insurance.
Investment Lessons from Diamond Hill Capital’s Approach
- Diversification Matters: Even among superinvestors, Diamond Hill demonstrates that broad sector exposure can coexist with conviction bets.
- Active Risk Management: Regular trims and additions reflect ongoing assessment of sector and company-specific risks.
- Long-Term Patience: An 18-quarter average holding period shows the value of letting investments compound, while selective turnover enables tactical flexibility.
- Conviction Sizing: Large additions to Capital One and Aon highlight the importance of scaling positions when opportunity arises.
- Quality Over Quantity: Focus remains on established, fundamentally sound businesses, even as the portfolio expands.
Looking Ahead: What Comes Next?
With $21.8B in assets and a growing roster of positions, Diamond Hill is well-positioned to capitalize on market volatility and sector rotations. The fund’s moderate turnover and recent additions suggest readiness to deploy capital into undervalued opportunities, especially in financials and insurance. As macroeconomic conditions shift, expect further tactical reallocations and continued focus on quality businesses. Investors should watch for new positions in technology and healthcare, as well as ongoing risk management in cyclical sectors.
FAQ about Diamond Hill Capital Management Portfolio
Q: Why did Diamond Hill reduce exposure to Bank of America and American International Group this quarter?
Diamond Hill trimmed both positions to manage sector risk and rebalance exposure, likely responding to changing fundamentals or valuation concerns in financials and insurance.
Q: How concentrated is Diamond Hill’s portfolio compared to other superinvestors?
The top 10 holdings make up 29.8% of the portfolio, indicating moderate concentration and a preference for diversification across 180 positions.
Q: What is the average holding period for Diamond Hill’s investments?
Diamond Hill holds positions for an average of 18 quarters, reflecting a long-term investment philosophy.
Q: Which sectors saw the most significant changes this quarter?
Financials and insurance saw the largest reallocations, with major additions to Capital One and Aon, and reductions in Bank of America and American International Group.
Q: How can I track Diamond Hill’s portfolio and follow their moves?
Use ValueSense’s superinvestor tracker and 13F filing analysis tools to monitor Diamond Hill’s latest holdings and quarterly changes. Note that 13F filings have a 45-day reporting lag, so real-time moves may differ.
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