Diamond Hill's fundamentally driven approach serves investors well in the firm's long-only strategies, but it doesn't consider the nuances of shorting stocks and long-short portfolio construction. The loss of a comanager and several analysts from the central research team also tempers our confidence, driving Diamond Hill Long-Short's Morningstar Analyst Rating downgrade to Neutral for all but the most expensive C share class, which earns a Negative.
Will DHLSX outperform in future?
Get our overall rating based on a fundamental assessment of the pillars below.
The Process Pillar is our assessment of how sensible, clearly defined, and repeatable DHLSX’s performance objective and investment process is for both security selection and portfolio construction.
The People Pillar is our evaluation of the DHLSX management team’s experience and ability. We find that high-quality management teams deliver superior performance relative to their benchmarks and/or peers.
The Parent Pillar is our rating of DHLSX’s parent organization’s priorities and whether they’re in line with investors’ interests.