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
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:PRU
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.