Reasons to Consider Mid Cap Exposure
Historically, Mid Cap stocks have outperformed Small Cap and Large Cap stocks, particularly in the long term.
In the example below, the Russell 2000 Index represents Small Cap and the Russell 1000 Index represents Large Cap.
Source: Morningstar Direct.
Rolling periods starting 4/1/1997, ending 3/31/2017.
Based on the chart below, Mid Cap stocks have performed well compared to both Small Cap and Large Cap stocks.
Source: Morningstar, Russell Indexes.
The chart represents a comparison of a hypothetical $10,000 investment in each Index and the reinvestment of dividends and capital gains and are not reflective of individual fund performance.
The Indexes are unmanaged and do not incur fees.
*The Russell 2000 Index was used as a proxy for Small Cap stocks, the Russell Midcap Index for Mid Cap stocks and the Russell 1000 for Large Cap stocks.
Why invest in Diamond Hill’s Mid Cap Fund
- The Diamond Hill Mid Cap Fund leverages the same investment team, philosophy and experience of Portfolio Manager Chris Welch.
- Chris has built a successful, long-term track record. The Diamond Hill Small-Mid Cap Fund (now closed to new investors) is 1 of 3 Gold Rated Funds in the U.S. Mid-Cap Value category as ranked by Morningstar.
Period And Average Annual Total Returns as of March 31, 2017
|SINCE INCEP.||10-YEAR||5-YEAR||3-YEAR||1-YEAR||3 MONTH||MARCH||TOTAL EXP. RATIO|
|MID CAP FUND (Inception Date: 12/31/13)|
|Returns At Nav (Without Sales Charge)|
|Returns At Nav (With Sales Charge)|
This information is for Institutional use only.
There are specialized risks associated with small and mid capitalization issues, such as market illiquidity and greater market volatility, than large capitalization issues.
The Overall Morningstar Rating™ is based on 341 mid-cap value funds as of 3/31/17. The Fund’s Class I rating was 4 stars among 341 funds for the 3-year period ended 3/31/17.
The Morningstar Rating™ for funds, or “star rating”, is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product’s monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods.
Past performance is no guarantee of future results.
The Small-Mid Cap Fund “Gold” rating is as of 3/31/2017.
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The Morningstar Analyst RatingTM is not a credit or risk rating. It is a subjective evaluation performed by Morningstar’s manager research group, which consists of various Morningstar, Inc. subsidiaries (“Manager Research Group”). In the United States, that subsidiary is Morningstar Research Services LLC, which is registered with and governed by the U.S. Securities and Exchange Commission. The Manager Research Group evaluates funds based on five key pillars, which are process, performance, people, parent, and price. The Manager Research Group uses this five pillar evaluation to determine how they believe funds are likely to perform relative to a benchmark, or in the case of exchange-traded funds and index mutual funds, a relevant peer group, over the long term on a risk-adjusted basis. They consider quantitative and qualitative factors in their research, and the weight of each pillar may vary. The Analyst Rating scale is Gold, Silver, Bronze, Neutral, and Negative. A Morningstar Analyst Rating of Gold, Silver, or Bronze reflects the Manager Research Group’s conviction in a fund’s prospects for outperformance. Analyst Ratings ultimately reflect the Manager Research Group’s overall assessment, are overseen by an Analyst Rating Committee, and are continuously monitored and reevaluated at least every 14 months.
For more detailed information about Morningstar’s Analyst Rating, including its methodology, please go to global.morningstar.com/managerdisclosures/.
The Morningstar Analyst Rating (i) should not be used as the sole basis in evaluating a fund, (ii) involves unknown risks and uncertainties which may cause Analyst expectations not to occur or to differ significantly from what they expected, and (iii) should not be considered an offer or solicitation to buy or sell the fund.
An investor should consider the Fund’s investment objectives, risks, charges and expenses carefully before investing. The prospectus or summary prospectus contain this and other important information about the Fund(s) and are available at diamond-hill.com or by calling 888.226.5595. Please read the prospectus or summary prospectus carefully before investing. The Diamond Hill Funds are distributed by BHIL Distributors, LLC (Member FINRA). Diamond Hill Capital Management, Inc., a registered investment adviser, serves as Investment Adviser to the Diamond Hill Funds and is paid a fee for its services. Diamond Hill Funds are not FDIC insured, may lose value, and have no bank guarantee.