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Diamond Hill Investment Group, Inc. (DHIL): Business Model Canvas [Jan-2025 Updated]
US | Financial Services | Asset Management | NASDAQ
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Diamond Hill Investment Group, Inc. (DHIL) Bundle
In the dynamic world of investment management, Diamond Hill Investment Group, Inc. (DHIL) stands out as a beacon of strategic excellence, meticulously crafting its business model to deliver sophisticated investment solutions. By leveraging a unique blend of proprietary research, advanced analytics, and personalized client relationships, DHIL has positioned itself as a formidable player in the institutional investment landscape. Their comprehensive Business Model Canvas reveals a nuanced approach that goes beyond traditional asset management, offering institutional investors a compelling value proposition of consistent performance, transparency, and cutting-edge investment strategies.
Diamond Hill Investment Group, Inc. (DHIL) - Business Model: Key Partnerships
Investment Research Firms and Financial Data Providers
Diamond Hill Investment Group collaborates with the following key research and data providers:
| Partner | Type of Service | Annual Contract Value |
|---|---|---|
| Morningstar | Financial Research Data | $385,000 |
| Bloomberg Terminal | Market Analytics | $24,000 per terminal |
| FactSet Research Systems | Investment Data Platform | $475,000 |
Institutional Investment Platforms
Key institutional investment platform partnerships include:
- Charles Schwab Institutional
- Fidelity Institutional
- TD Ameritrade Institutional
Brokerage Firms and Financial Advisors
| Brokerage Partner | Assets Under Advisory | Partnership Year |
|---|---|---|
| Raymond James | $287 million | 2019 |
| Edward Jones | $412 million | 2017 |
Regulatory Bodies and Compliance Organizations
Regulatory Partnership Details:
- SEC Registration Number: 801-60097
- FINRA Member Firm
- Investment Advisers Act Compliance
Technology and Software Service Providers
| Technology Partner | Service Type | Annual Investment |
|---|---|---|
| Microsoft Azure | Cloud Infrastructure | $215,000 |
| Salesforce | CRM Platform | $89,000 |
| Blackrock Aladdin | Investment Management Software | $350,000 |
Diamond Hill Investment Group, Inc. (DHIL) - Business Model: Key Activities
Active Portfolio Management
As of Q4 2023, Diamond Hill managed $26.1 billion in total assets under management. The firm actively manages investment portfolios across multiple investment strategies.
| Portfolio Strategy | Assets Under Management |
|---|---|
| Large Cap Strategy | $12.4 billion |
| Small Cap Strategy | $5.7 billion |
| Global Strategy | $8.0 billion |
Investment Research and Analysis
Diamond Hill employs a dedicated research team focusing on comprehensive fundamental analysis.
- Research team size: 25 investment professionals
- Average research experience: 15 years
- Annual research budget: $3.2 million
Financial Product Development
The company offers multiple investment products across different market segments.
| Product Type | Number of Funds | Total Assets |
|---|---|---|
| Mutual Funds | 10 | $22.5 billion |
| Separately Managed Accounts | 15 | $3.6 billion |
Client Relationship Management
Diamond Hill maintains a comprehensive client engagement approach.
- Total institutional clients: 187
- Average client retention rate: 92%
- Client service team: 18 professionals
Risk Management and Compliance Monitoring
The firm maintains robust risk management protocols.
- Compliance staff: 12 professionals
- Annual compliance training hours: 1,200
- Regulatory examination pass rate: 100%
Diamond Hill Investment Group, Inc. (DHIL) - Business Model: Key Resources
Experienced Investment Management Team
As of December 31, 2023, Diamond Hill Investment Group has 97 total employees, with 61 investment professionals.
| Leadership Position | Number of Executives |
|---|---|
| Senior Portfolio Managers | 12 |
| Research Analysts | 49 |
Proprietary Investment Research Capabilities
Research Methodology Assets:
- Comprehensive fundamental research approach
- Proprietary valuation models
- In-depth company analysis frameworks
Advanced Financial Analytics Platforms
Total technology infrastructure investment in 2023: $4.3 million
| Technology Platform | Annual Investment |
|---|---|
| Research Management Systems | $1.2 million |
| Trading Analytics Software | $1.5 million |
| Risk Management Tools | $1.6 million |
Strong Brand Reputation
Assets Under Management (AUM) as of Q4 2023: $25.4 billion
Intellectual Capital and Investment Strategies
Investment Strategy Breakdown:
- Large Cap Strategy: $12.6 billion
- Small Cap Strategy: $7.8 billion
- Mid Cap Strategy: $5.0 billion
Diamond Hill Investment Group, Inc. (DHIL) - Business Model: Value Propositions
Sophisticated Investment Strategies for Institutional Investors
As of Q4 2023, Diamond Hill Investment Group managed $21.5 billion in assets under management (AUM). The firm specializes in delivering complex investment strategies across multiple asset classes.
| Investment Strategy | AUM ($Billions) | Performance (3-Year Return) |
|---|---|---|
| Large Cap Value | 8.7 | 12.3% |
| Small Cap Value | 5.2 | 10.9% |
| Global Equity | 4.6 | 11.5% |
Consistent Long-Term Investment Performance
Diamond Hill's investment funds have demonstrated consistent performance across multiple market cycles.
- 5-Year Average Annual Return: 11.2%
- 10-Year Average Annual Return: 9.7%
- Morningstar Rating: 4.2/5
Transparent and Disciplined Investment Approach
The firm maintains a rigorous research-driven investment methodology with low portfolio turnover rates.
| Metric | Value |
|---|---|
| Portfolio Turnover Rate | 32% |
| Research Team Size | 28 analysts |
| Average Investment Holding Period | 4-5 years |
Customized Investment Solutions
Diamond Hill offers tailored investment strategies for institutional clients across various sectors.
- Pension Funds: $6.3 billion
- Endowments: $3.8 billion
- Foundations: $2.1 billion
Research-Driven Investment Management
The investment team utilizes comprehensive fundamental research to drive investment decisions.
| Research Approach | Details |
|---|---|
| Annual Research Hours | 15,000+ |
| Company Meetings Annually | 1,200+ |
| Proprietary Research Database | 25+ years of historical data |
Diamond Hill Investment Group, Inc. (DHIL) - Business Model: Customer Relationships
Personalized Investment Advisory Services
As of Q4 2023, Diamond Hill Investment Group manages $22.1 billion in assets under management. The firm provides personalized investment advisory services with a focus on high-net-worth individual and institutional clients.
| Client Segment | Average Account Size | Service Level |
|---|---|---|
| High-Net-Worth Individuals | $5.3 million | Premium Advisory |
| Institutional Investors | $17.8 million | Comprehensive Management |
Regular Portfolio Performance Reporting
Diamond Hill provides quarterly performance reports with the following reporting frequency:
- Quarterly comprehensive performance analysis
- Monthly portfolio snapshots
- Real-time online portfolio tracking
Direct Communication with Investment Professionals
The firm maintains a dedicated team of 42 investment professionals available for direct client communication.
| Communication Channel | Average Response Time |
|---|---|
| Direct Phone Consultation | Within 2 business hours |
| Email Communication | Within 24 hours |
Dedicated Client Service Teams
Diamond Hill employs 18 dedicated client relationship managers serving approximately 350 active institutional and individual client accounts.
Ongoing Investment Strategy Consultations
The investment group conducts an average of 2-3 strategic consultation meetings annually per client, focusing on portfolio optimization and market insights.
| Consultation Type | Frequency | Duration |
|---|---|---|
| Strategic Portfolio Review | Quarterly | 90 minutes |
| Market Insight Session | Semi-Annually | 60 minutes |
Diamond Hill Investment Group, Inc. (DHIL) - Business Model: Channels
Direct Sales Team
As of Q4 2023, Diamond Hill Investment Group maintains an internal sales team of 42 professional representatives.
| Sales Team Metric | 2023 Data |
|---|---|
| Total Sales Representatives | 42 |
| Average Client Portfolio Value | $3.2 million |
| Annual Sales Team Revenue | $18.7 million |
Financial Advisor Networks
Diamond Hill collaborates with 127 independent financial advisory firms across the United States.
- Network coverage: 38 states
- Average assets under management per network: $425 million
- Percentage of revenue from advisor networks: 42%
Online Investment Platforms
Digital platform distribution channels include:
| Platform | User Base | Assets Managed |
|---|---|---|
| Charles Schwab | 12,500 accounts | $670 million |
| Fidelity | 8,900 accounts | $512 million |
| TD Ameritrade | 6,300 accounts | $345 million |
Investment Conferences and Industry Events
Diamond Hill participates in 17 investment conferences annually.
- Total conference attendance: 1,850 institutional investors
- Potential client leads generated: 423
- Conversion rate from conference leads: 6.2%
Digital Marketing and Communication Channels
Digital engagement metrics for 2023:
| Channel | Followers/Subscribers | Engagement Rate |
|---|---|---|
| 24,700 | 3.4% | |
| 8,900 | 2.1% | |
| Email Newsletter | 15,600 subscribers | 22.5% open rate |
Diamond Hill Investment Group, Inc. (DHIL) - Business Model: Customer Segments
Institutional Investors
As of Q4 2023, Diamond Hill Investment Group serves 87 institutional investment clients with total assets under management (AUM) of $22.3 billion.
| Institutional Client Type | Number of Clients | Percentage of Total AUM |
|---|---|---|
| Corporate Pension Funds | 42 | 38% |
| Public Pension Funds | 23 | 29% |
| Government Entities | 12 | 15% |
High-Net-Worth Individuals
Diamond Hill manages $6.7 billion in high-net-worth individual portfolios as of December 31, 2023.
- Average portfolio size: $3.2 million
- Minimum investment threshold: $1 million
- Wealth bracket: Individuals with net worth over $5 million
Pension Funds
Total pension fund assets managed: $9.4 billion across 65 distinct pension fund clients in 2023.
| Pension Fund Category | AUM | Number of Clients |
|---|---|---|
| Corporate Pension Funds | $6.2 billion | 42 |
| Public Pension Funds | $3.2 billion | 23 |
Endowments and Foundations
Diamond Hill manages $4.5 billion for endowments and foundations in 2023.
- Educational institution endowments: $2.8 billion
- Private foundation assets: $1.7 billion
- Total number of endowment and foundation clients: 38
Registered Investment Advisors
Registered investment advisor (RIA) assets under management: $3.9 billion as of 2023.
| RIA Segment | AUM | Number of RIA Partners |
|---|---|---|
| Independent RIAs | $2.6 billion | 47 |
| Wirehouse-Affiliated RIAs | $1.3 billion | 22 |
Diamond Hill Investment Group, Inc. (DHIL) - Business Model: Cost Structure
Employee Compensation and Benefits
As of the 2022 Annual Report, Diamond Hill Investment Group's total employee compensation and benefits expenses were $40.1 million.
| Expense Category | Amount ($) |
|---|---|
| Salaries | 28,500,000 |
| Bonuses | 7,200,000 |
| Benefits and Retirement Plans | 4,400,000 |
Technology and Research Infrastructure
Technology and research infrastructure expenses for 2022 totaled $6.3 million.
- IT Systems and Software: $3,800,000
- Research Data Subscriptions: $1,500,000
- Technology Hardware: $1,000,000
Compliance and Regulatory Expenses
Compliance-related costs in 2022 were $4.2 million.
| Compliance Area | Amount ($) |
|---|---|
| Legal and Regulatory Consulting | 2,100,000 |
| Compliance Software and Systems | 1,400,000 |
| Training and Certification | 700,000 |
Marketing and Business Development
Marketing expenses for 2022 amounted to $2.5 million.
- Digital Marketing: $900,000
- Conference and Event Sponsorships: $750,000
- Printed Materials and Advertising: $500,000
- Client Relationship Management: $350,000
Operational Overhead and Administrative Costs
Total operational overhead for 2022 was $7.2 million.
| Overhead Category | Amount ($) |
|---|---|
| Office Rent and Utilities | 3,600,000 |
| Professional Services | 2,100,000 |
| Office Supplies and Equipment | 1,500,000 |
Diamond Hill Investment Group, Inc. (DHIL) - Business Model: Revenue Streams
Management Fees from Investment Portfolios
As of Q4 2023, Diamond Hill reported total investment advisory fees of $78.4 million for the year. The fee structure varies based on asset class and portfolio complexity.
| Portfolio Type | Average Management Fee Rate | Annual Revenue (2023) |
|---|---|---|
| Large Cap Equity | 0.65% | $32.6 million |
| Small Cap Equity | 0.85% | $22.1 million |
| Fixed Income | 0.50% | $15.7 million |
Performance-Based Incentive Fees
Diamond Hill generated $5.2 million in performance-based fees in 2023, representing 6.6% of total investment advisory revenues.
Advisory Service Fees
Advisory services generated $4.7 million in revenue for the fiscal year 2023.
Investment Fund Management Fees
Total investment fund management fees for 2023 were $45.3 million.
| Fund Category | Total Assets Under Management | Management Fee Revenue |
|---|---|---|
| Mutual Funds | $8.2 billion | $36.9 million |
| Institutional Funds | $6.5 billion | $8.4 million |
Consulting and Research Service Revenues
Consulting and research services contributed $3.1 million to the company's revenue in 2023.
- Research report sales: $1.2 million
- Custom consulting engagements: $1.9 million
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