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Sep 30, 2021
Diamond Hill Q3 2021 Earnings Report
Reported strong financial results driven by focus on long-term investment outcomes and strategic capital allocation.
Key Takeaways
Diamond Hill Investment Group reported a strong third quarter in 2021, with revenue increasing significantly compared to the same period in 2020. The company benefited from performance-based fees and the sale of high yield-focused advisory contracts. They also announced a special dividend and an increase in the regular quarterly dividend for 2022.
Assets under management were $29.2 billion, which included a reduction of $3.5 billion from the sale of high yield-focused advisory contracts.
Revenue increased to $55.1 million, driven by $11.9 million in performance-based fees.
Net income attributable to common shareholders was $25.6 million, resulting in earnings per share of $8.03.
The company announced a special cash dividend of $19.00 per share and an increase in the regular quarterly dividend to $1.50 per share starting in 2022.
Forward Guidance
Diamond Hill expects to maintain sufficient cash to operate the business and will continue to return excess capital to shareholders through dividends and share repurchases.
Positive Outlook
- The company anticipates continued focus on valuation-driven investment principles.
- The company plans to maintain a long-term perspective in its investment strategies.
- The company is committed to capacity discipline to manage growth effectively.
- The company will continue to align its interests with those of its clients.
- The company expects to increase the regular quarterly dividend.
Challenges Ahead
- A decline in the securities markets could adversely affect the company's performance.
- Poor performance of the company's products could negatively impact results.
- National, regional, and global economic conditions could present challenges.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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