Diamond Hill’s Loving Prudential Financial Inc (PRU) & Medtronic, Inc. (MDT), Among Others

In the latest round of 13F filings, Diamond Hill Capital Management, managed by Ric Dillon, is another hedge fund that disclosed all of its equities as of the end of the second quarter. We’ve found one very dominant market-beating strategy embedded in a corner of the hedge fund marketplace; discover the secrets of this strategy here.

Medtronic, Inc. (NYSE:MDT)What you should know about Diamond Hill Capital Management, is that it was founded in 2000 and its investing strategy involves a bottom-up fundamental approach, and to determine the intrinsic value of equities, it uses metrics such as normalized earnings, payout ratios and dividend indicators. Overall, the hedge fund has about $10 billion in AUM.

Hedge funds are some of the most sophisticated mechanisms of the investment world. To help you better understand what a hedge fund is, take a look at our comparison of  a hedge fund vs a mutual fund.

However, let’s get back to Diamond Hill and its top five stock picks.

As follows, in first is Prudential Financial Inc (NYSE:PRU), in which the hedge fund disclosed ownership of 3.9 million shares, worth $283.3 million. During the second quarter of the year, the hedge fund increased its position in Prudential Financial Inc (NYSE:PRUby 652,451 shares.

The next on the list follows Medtronic, Inc. (NYSE:MDT), represented in Ric Dillon’s 13F by a $275.7 million stake, which involves 5.4 million shares, down by 11% or 703,128 shares over the quarter. The stock of Medtronic, Inc. (NYSE:MDT), showed a year-to-date return of almost 34% and sports a P/E of 16.2x.

In Occidental Petroleum Corporation (NYSE:OXY), Diamond Hill reported a stake of 3.1 million shares, with its value amounting to $275.4 million. Since the end of March, the position in Occidental Petroleum Corporation (NYSE:OXY) has decreased by over 200,000 shares.

The fourth-largest position in Diamond Hill’s equity portfolio is represented by Citigroup Inc. (NYSE:C), in which the hedge fund disclosed a $268.5 million of about 5.6 million shares, down by 7% since the end of the first quarter. The stock of Citigroup Inc. (NYSE:C) shows a year-to-date return of almost 31%, however, so the position has been a net positive for Dillon.
Last is hedge funds’ favorite financial stock, American International Group Inc (NYSE:AIG). Diamond Hill reported almost 6 million shares, worth $267.7 million. At the end of the first quarter of 2013, the hedge fund’s position in American International Group Inc (NYSE:AIG) involved about 6.5 million shares and was worth $251.6 million.

On the whole, the 13F portfolio of Diamond Hill contains 150 positions and is worth $9.3 billion, down from the previous value of $9.5 billion.

Aside from Diamond Hill, take a look at Tom Sandell’s Sandell Asset Management, Michael Blitzer’s Kingstown Capital Management, and James Pallotta’s Raptor Capital Management for more related coverage.

Disclosure: none

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Top 9 Most Popular Free iPhone Apps

Top 10 Least Expensive Private Business Schools in the US

Top 15 Most Expensive Countries in the World – 2014

Top Businesses to Invest In

Top 5 Things You Might Be Doing Wrong With Your Business

Top 5 Strategic Technology Trends in 2014

Top Rags to Riches Stories

Parenting Behavior That Promotes Future Leaders

Top 5 Mistakes Made by Small Businesses

Top 5 Most Common and Potentially Devastating Financial Blunders

Top 5 Highest Paying Jobs for Web Designers

Top 6 Most Respected Professions that Also Pay Well

Top 5 Pitfalls Investors Should Avoid

Top 6 Lawyers and Policy Makers Under 30

Top 6 New Year’s Resolutions for Entrepreneurs

Top 7 Locations to Check in on Facebook

Top 5 Mistakes made by Rookie eBay Sellers

Top 7 eBook Publishers in 2013

Top 6 Health Industry Trends in 2014

5 Lessons for Entrepreneurs from Seth Godin

Top 5 Success Tips from Jordan Belfort – the Wolf of Wall Street

Best Master’s in Finance Degree Programs

Top 6 Earning Celebrities Over 50

The most expensive sports to play

Top 7 Earning Celebrities Under 25

Best 7 Online Courses to Take: Free Finance MOOCs

Top 6 Bad Habits that Promote Failure

20 Most Valuable Soccer Teams in the World in 2013

12 Most Expensive Countries for Foreign Students

Top 30 Most Influential Women in the World

Top 20 Most Expensive New Year Eve Shows

Top 5 Best Vocational Careers

Top 10 Jobs for 2014 by Salary Gain (Predictions)

Top 5 Digital Trends for 2014

Top 6 Things You Can Do To Increase Your Productivity

Top 9 Trending Smartphones in 2013

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!