Summary

• Diamond Hill’s long positions in software businesses, including Microsoft , Salesforce and Adobe, were among the most notable detractors in the quarter.
• Exploration and production companies Chevron and Diamondback Energy saw shares rise as the sharp increase in oil prices drove a broad rally across US-based oil producers.
• Diamond Hill initiated a position in Gartner as concerns around slowing revenue growth and potential disruption from AI created an opportunity to invest at an attractive valuation.
• Diamond Hill expects tailwinds to fade as vessel flows resume through the Strait of Hormuz, a wave of very large crude carrier supply comes to market and fleet dynamics remain oversupplied.
• Diamond Hill exited its position in medical device manufacturer Penumbra after the company announced its acquisition by Boston Scientific.

The following segment was excerpted from this fund letter.

Equity market volatility picked up in Q1 due in large part to the ongoing war in Iran. After starting the year modestly positive through February, the Russell 1000

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