We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Is Diamond Hill Large Cap Fund A (DHLAX) a Strong Mutual Fund Pick Right Now?
Read MoreHide Full Article
If you're looking for a Mutual Fund Equity Report fund category, then a potential option is Diamond Hill Large Cap Fund A (DHLAX - Free Report) . DHLAX bears a Zacks Mutual Fund Rank of 3 (Hold), which is based on various forecasting factors like size, cost, and past performance.
History of Fund/Manager
Diamond Hill is based in Columbus, OH, and is the manager of DHLAX. The Diamond Hill Large Cap Fund A made its debut in July of 2001 and DHLAX has managed to accumulate roughly $777 million in assets, as of the most recently available information. The fund's current manager, Charles Bath, has been in charge of the fund since September of 2002.
Performance
Investors naturally seek funds with strong performance. This fund has delivered a 5-year annualized total return of 7.6%, and it sits in the middle third among its category peers. But if you are looking for a shorter time frame, it is also worth looking at its 3-year annualized total return of 16.86%, which places it in the bottom third during this time-frame.
When looking at a fund's performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. Compared to the category average of 18.47%, the standard deviation of DHLAX over the past three years is 19.48%. Over the past 5 years, the standard deviation of the fund is 20.06% compared to the category average of 16.45%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
Investors should note that the fund has a 5-year beta of 1.02, so it is likely going to be as volatile as the market at large. Alpha is an additional metric to take into consideration, since it represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which in this case, is the S&P 500. Over the past 5 years, the fund has a negative alpha of -3.19. This means that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Holdings
Investigating the equity holdings of a mutual fund is also a valuable exercise. This can show us how the manager is applying their stated methodology, as well as if there are any inherent biases in their approach. For this particular fund, the focus is mostly on equities that are traded in the United States.
The mutual fund currently has 94.91% of its holdings in stocks, with an average market capitalization of $148.86 billion. The fund has the heaviest exposure to the following market sectors:
Finance
Technology
Industrial Cyclical
Health
Turnover is 38%, which means, on average, the fund makes fewer trades than its comparable peers.
Expenses
For investors, taking a closer look at cost-related metrics is key, since costs are increasingly important for mutual fund investing. Competition is heating up in this space, and a lower cost product will likely outperform its otherwise identical counterpart, all things being equal. In terms of fees, DHLAX is a no load fund. It has an expense ratio of 0.96% compared to the category average of 0.91%. DHLAX is actually more expensive than its peers when you consider factors like cost.
While the minimum initial investment for the product is $2,500, investors should also note that there is no minimum for each subsequent investment.
Bottom Line
Overall, Diamond Hill Large Cap Fund A ( DHLAX ) has a neutral Zacks Mutual Fund rank, and in conjunction with its comparatively similar performance, average downside risk, and higher fees, Diamond Hill Large Cap Fund A ( DHLAX ) looks like a somewhat average choice for investors right now.
For additional information on this product, or to compare it to other mutual funds in the Mutual Fund Equity Report, make sure to go to www.zacks.com/funds/mutual-funds for additional information. If you are more of a stock investor, make sure to also check out our Zacks Rank, and our full suite of tools we have available for novice and professional investors alike.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Is Diamond Hill Large Cap Fund A (DHLAX) a Strong Mutual Fund Pick Right Now?
If you're looking for a Mutual Fund Equity Report fund category, then a potential option is Diamond Hill Large Cap Fund A (DHLAX - Free Report) . DHLAX bears a Zacks Mutual Fund Rank of 3 (Hold), which is based on various forecasting factors like size, cost, and past performance.
History of Fund/Manager
Diamond Hill is based in Columbus, OH, and is the manager of DHLAX. The Diamond Hill Large Cap Fund A made its debut in July of 2001 and DHLAX has managed to accumulate roughly $777 million in assets, as of the most recently available information. The fund's current manager, Charles Bath, has been in charge of the fund since September of 2002.
Performance
Investors naturally seek funds with strong performance. This fund has delivered a 5-year annualized total return of 7.6%, and it sits in the middle third among its category peers. But if you are looking for a shorter time frame, it is also worth looking at its 3-year annualized total return of 16.86%, which places it in the bottom third during this time-frame.
When looking at a fund's performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. Compared to the category average of 18.47%, the standard deviation of DHLAX over the past three years is 19.48%. Over the past 5 years, the standard deviation of the fund is 20.06% compared to the category average of 16.45%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
Investors should note that the fund has a 5-year beta of 1.02, so it is likely going to be as volatile as the market at large. Alpha is an additional metric to take into consideration, since it represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which in this case, is the S&P 500. Over the past 5 years, the fund has a negative alpha of -3.19. This means that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Holdings
Investigating the equity holdings of a mutual fund is also a valuable exercise. This can show us how the manager is applying their stated methodology, as well as if there are any inherent biases in their approach. For this particular fund, the focus is mostly on equities that are traded in the United States.
The mutual fund currently has 94.91% of its holdings in stocks, with an average market capitalization of $148.86 billion. The fund has the heaviest exposure to the following market sectors:
- Finance
- Technology
- Industrial Cyclical
- Health
Turnover is 38%, which means, on average, the fund makes fewer trades than its comparable peers.Expenses
For investors, taking a closer look at cost-related metrics is key, since costs are increasingly important for mutual fund investing. Competition is heating up in this space, and a lower cost product will likely outperform its otherwise identical counterpart, all things being equal. In terms of fees, DHLAX is a no load fund. It has an expense ratio of 0.96% compared to the category average of 0.91%. DHLAX is actually more expensive than its peers when you consider factors like cost.
While the minimum initial investment for the product is $2,500, investors should also note that there is no minimum for each subsequent investment.
Bottom Line
Overall, Diamond Hill Large Cap Fund A ( DHLAX ) has a neutral Zacks Mutual Fund rank, and in conjunction with its comparatively similar performance, average downside risk, and higher fees, Diamond Hill Large Cap Fund A ( DHLAX ) looks like a somewhat average choice for investors right now.
For additional information on this product, or to compare it to other mutual funds in the Mutual Fund Equity Report, make sure to go to www.zacks.com/funds/mutual-funds for additional information. If you are more of a stock investor, make sure to also check out our Zacks Rank, and our full suite of tools we have available for novice and professional investors alike.