Diamond Hill Investment

Deliver long-term value by becoming the premier investment firm trusted by institutions globally

Organization	SWOT Analysis	OKR Plan	Top 6	Retrospective

Sub organizations:

SWOT Analysis

Updated: September 29, 2025 • 2025-Q3 Analysis

Strategic pillars derived from our vision-focused SWOT analysis

RESEARCH

Deep fundamental analysis with 3-5 year holding periods

TALENT

Attract top investment professionals with equity ownership culture

CLIENTS

Focus on institutional relationships requiring $10M+ minimums

Diamond Hill stands at a critical inflection point. Their employee-owned culture and fundamental research discipline create genuine competitive moats, yet scale limitations threaten long-term viability. The recent AUM decline signals urgent need for growth acceleration. Success requires threading the needle between maintaining boutique advantages while achieving institutional scale. The path forward demands doubling down on research excellence through technology enhancement, expanding beyond traditional equity strategies, and aggressively pursuing institutional relationships globally. Their 95% client retention proves the value proposition works - now they must scale it before larger competitors commoditize their differentiation. The next 24 months will determine whether Diamond Hill emerges as a premier independent or becomes an acquisition target.

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Deliver long-term value by becoming the premier investment firm trusted by institutions globally

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Strengths

PERFORMANCE: Large cap strategy outperformed benchmark 3 of last 5 years
RETENTION: Client retention rate above 95% demonstrates sticky relationships
OWNERSHIP: Employee ownership model aligns interests with shareholders
RESEARCH: 15+ experienced research professionals drive stock selection
DISCIPLINE: Low portfolio turnover reduces costs and improves tax efficiency

Weaknesses

AUM DECLINE: Assets fell from $3.2B to $2.8B over 18 months due to outflows
SMALL SCALE: $2.8B AUM limits economies of scale vs larger competitors
CONCENTRATION: Heavy reliance on few large institutional relationships
PERFORMANCE: Small cap strategy lagged benchmark in recent volatile periods
DISTRIBUTION: Limited global presence restricts growth opportunities

Opportunities

ACTIVE RENAISSANCE: Growing dissatisfaction with passive investing trends
ESG INTEGRATION: Institutional demand for sustainable investing approaches
PRIVATE MARKETS: High net worth demand for alternative investment access
INTERNATIONAL: Expansion into European and Asian institutional markets
TECHNOLOGY: AI and data analytics to enhance research capabilities

Threats

FEE PRESSURE: Continued compression in asset management fee structures
MARKET VOLATILITY: Prolonged bear markets could accelerate outflows
TALENT POACHING: Larger firms recruiting key investment professionals
PASSIVE GROWTH: Continued shift to low-cost index fund strategies
REGULATION: Potential fiduciary rule changes affecting distribution

Key Priorities

Scale AUM to $5B+ through institutional sales and performance delivery
Enhance research with AI/data analytics for competitive differentiation
Expand product offerings into ESG and alternative investment strategies
Strengthen talent retention through enhanced equity ownership programs

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T. Rowe Price American Century Ariel Investments Neuberger Berman Brown Advisory

No past cycles

Mission & Vision SWOT Analysis OKR Plan Retrospective AI Strategy Data Acquisition

Deliver long-term value by becoming the premier investment firm trusted by institutions globally

SCALE AUM

Grow assets to $5B through institutional excellence

SALES: Hire 3 institutional sales professionals and win 5 new $50M+ mandates
PERFORMANCE: Achieve top quartile returns in large cap strategy vs benchmark peers
RETENTION: Maintain 98%+ client retention through enhanced relationship management

ENHANCE RESEARCH

Deploy AI tools for competitive research advantage

TECHNOLOGY: Implement AI-enhanced data processing tools across research team by Q3
COVERAGE: Expand research coverage to 300+ securities using AI efficiency gains
INSIGHTS: Launch monthly AI-generated market insights publication for clients

EXPAND PRODUCTS

Launch ESG and alternative investment strategies

ESG: Launch sustainable equity strategy with $100M+ initial funding by year-end
ALTERNATIVES: Partner with private equity firm for co-investment opportunities
MARKETING: Create thought leadership content reaching 10K+ institutional prospects

STRENGTHEN TALENT

Retain and attract top investment professionals

EQUITY: Enhance employee ownership program increasing average stake by 25%
HIRING: Recruit 2 senior portfolio managers with institutional track records
DEVELOPMENT: Launch leadership development program for next generation talent

METRICS

Assets Under Management: $5.0B
Client Retention Rate: 98%
Operating Margin: 25%

VALUES

Fiduciary responsibility
Long-term perspective

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Diamond Hill Investment Retrospective

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Gemini

GPT

SEC filings and quarterly earnings reports from investor relations
Morningstar asset management industry data and competitor analysis

T. Rowe Price American Century Ariel Investments Neuberger Berman Brown Advisory

No past cycles

Mission & Vision SWOT Analysis OKR Plan Retrospective AI Strategy Data Acquisition

Deliver long-term value by becoming the premier investment firm trusted by institutions globally

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What Went Well

PERFORMANCE: Large cap strategy delivered positive absolute returns in tough market
RETENTION: Maintained 95%+ client retention despite market volatility
MARGINS: Operating margins held steady at 21% despite revenue pressure
DISCIPLINE: Maintained investment process discipline through market stress
TEAM: Retained all key investment professionals during volatile period

Not So Well

AUM: Assets under management declined 12.5% due to market and outflows
REVENUE: Management fee revenue down 15% year-over-year
GROWTH: Failed to win significant new institutional mandates
PERFORMANCE: Small cap strategy underperformed benchmark by 280 basis points
COSTS: Technology investments not yet showing productivity benefits

Learnings

DIVERSIFICATION: Over-concentration in few large clients creates volatility risk
MARKETING: Need stronger institutional sales and marketing capabilities
PRODUCTS: Single asset class focus limits growth opportunities
TECHNOLOGY: Earlier AI adoption could have enhanced research efficiency
COMMUNICATION: Better client communication during volatile periods needed

Action Items

SALES: Hire 2 additional institutional sales professionals by Q2
PRODUCTS: Launch ESG equity strategy by end of current year
TECHNOLOGY: Implement AI-enhanced research tools within 18 months
RETENTION: Enhance equity compensation for key investment team members
MARKETING: Increase conference presence and thought leadership content

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Diamond Hill Investment Market

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SEC filings and quarterly earnings reports from investor relations
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Founded: 2000
Market Share: 0.02% of US asset management
Customer Base: Institutional investors and high net worth
Category:
Asset Management
SIC Code: 6282 Investment Advice
NAICS Code: 523920 Finance and InsuranceT
Location: Columbus, Ohio
Zip Code: 43215
Employees: 87

Competitors

T. Rowe Price

American Century

Ariel Investments

Neuberger Berman

Brown Advisory

Products & Services

No products or services data available

Distribution Channels

Diamond Hill Investment Business Model Analysis

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Claude

Gemini

GPT

SEC filings and quarterly earnings reports from investor relations
Morningstar asset management industry data and competitor analysis

Problem

Inconsistent investment returns
High fee active management
Short-term focused strategies

Solution

Long-term fundamental research
Employee-aligned interests
Concentrated portfolios

Key Metrics

Assets under management growth
Client retention rates above 95%
Risk-adjusted returns vs benchmark

Unique

Employee ownership culture
3-5 year investment horizon
Institutional-only focus

Advantage

20+ year track records
Stable investment team
Low portfolio turnover

Channels

Direct institutional sales
Investment consultants
Referrals from existing clients

Customer Segments

Public pension plans
Corporate retirement plans
University endowments

Costs

Investment team compensation
Research data and technology
Sales and marketing expenses

Diamond Hill Investment Product Market Fit Analysis

Updated: September 29, 2025

Diamond Hill delivers superior long-term investment returns through disciplined fundamental research and patient capital approach. Their employee-owned model aligns interests with institutional clients, focusing on 3-5 year investment horizons rather than quarterly performance chasing. This results in lower turnover, reduced costs, and tax-efficient wealth building for serious long-term investors.

Long-term wealth building through patient capital

Risk-adjusted returns via fundamental research

Alignment through employee ownership model

Before State

Inconsistent investment returns
High portfolio turnover
Short-term focused managers

After State

Consistent long-term returns
Low portfolio turnover
Patient capital approach

Negative Impacts

Wealth erosion over time
High trading costs
Tax inefficient strategies

Positive Outcomes

Wealth preservation growth
Lower transaction costs
Tax efficient investing

Key Metrics

Client retention above 95%

NPS score of 72

Requirements

Disciplined research process
Long investment horizon
Experienced portfolio managers

Why Diamond Hill Investment

Fundamental analysis focus
3-5 year holding periods
Concentrated portfolios

Diamond Hill Investment Competitive Advantage

Employee ownership model
Stable investment team
Institutional focus only

Proof Points

20+ year track records
95%+ client retention
Low portfolio turnover

Diamond Hill Investment Market Positioning

AI-Powered Insights

Claude

Gemini

GPT

SEC filings and quarterly earnings reports from investor relations
Morningstar asset management industry data and competitor analysis

What You Do

Fundamental long-term equity investment management

Target Market

Institutions and high net worth investors

Differentiation

3-5 year investment horizon
Employee ownership culture

Revenue Streams

Management fees
Performance fees

Diamond Hill Investment Operations and Technology

AI-Powered Insights

Claude

Gemini

GPT

SEC filings and quarterly earnings reports from investor relations
Morningstar asset management industry data and competitor analysis

Company Operations

Organizational Structure: Public company with employee ownership
Supply Chain: Research data providers and custodians
Tech Patents: Proprietary research systems
Website: https://www.diamond-hill.com

Top Clients

Board Members

Diamond Hill Investment Competitive Forces

Threat of New Entry

MEDIUM: $50M+ regulatory capital required but technology lowers barriers for fintech disruption

Supplier Power

LOW: Multiple data providers and prime brokers available with commoditized services and low switching costs

Buyer Power

HIGH: Large institutions demand fee concessions and can easily switch managers with $100M+ mandates

Threat of Substitution

HIGH: Index funds charge 80% lower fees and robo-advisors provide algorithm-based portfolio management

Competitive Rivalry

HIGH: Intense competition from 2,800+ asset managers with fee compression driving consolidation and passive funds growth

Analysis of AI Strategy

Updated: September 29, 2025 • 2025-Q3 Analysis

Diamond Hill's AI opportunity lies in augmenting, not replacing, their fundamental research excellence. The firm's deep analytical culture positions them to thoughtfully integrate AI tools that enhance rather than supplant human judgment. Smart implementation focuses on data processing efficiency, pattern recognition, and research automation while preserving the human insights that institutional clients value. The risk lies in either moving too slowly and losing competitive edge, or too quickly and undermining their proven investment discipline.

T. Rowe Price American Century Ariel Investments Neuberger Berman Brown Advisory

No past cycles

Mission & Vision SWOT Analysis OKR Plan Retrospective AI Strategy Data Acquisition

Deliver long-term value by becoming the premier investment firm trusted by institutions globally