Forward-Looking Statements



Throughout this Quarterly Report on Form 10-Q and other publicly available
documents, including the documents incorporated herein by reference, the Company
may make forward-looking statements within the meaning of the U.S. Private
Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of
1933, as amended (the "Securities Act"), and Section 21E of the Securities
Exchange Act of 1934, as amended (the "Exchange Act"), relating to such matters
as anticipated operating results, AUM prospects and levels, technological
developments, economic trends (including interest rates and market volatility),
expected transactions and similar matters. The words "believe," "expect,"
"anticipate," "estimate," "may," "will," "likely," "project," "should," "hope,"
"seek," "plan," "intend" and similar expressions identify forward-looking
statements that speak only as of the date thereof. While the Company believes
that the assumptions underlying its forward-looking statements are reasonable,
investors are cautioned that any of the assumptions could prove to be inaccurate
and, accordingly, actual results and experiences could differ materially from
the anticipated results or other expectations expressed in the forward-looking
statements.

Factors that could cause such actual results or experiences to differ from
results discussed in the forward-looking statements include, but are not limited
to: (i) any reduction in the Company's AUM; (ii) withdrawal, renegotiation, or
termination of DHCM's investment advisory agreements; (iii) damage to the
Company's reputation; (iv) failure to comply with investment guidelines or other
contractual requirements; (v) challenges from the competition the Company faces
in its business; (vi) adverse regulatory and legal developments; (vii)
unfavorable changes in tax laws or limitations; (viii) interruptions in or
failure to provide critical technological service by the Company or third
parties; (ix) adverse civil litigation and government investigations or
proceedings; (x) risk of loss on the Company's investments; (xi) lack of
sufficient capital on satisfactory terms; (xii) losses or costs not covered by
insurance; (xiii) impairment of goodwill or intangible assets; (xiv) a decline
in the performance of the Company's products; (xv) changes in interest rates;
(xvi) changes in national and local economic and political conditions; (xvii)
the continuing economic uncertainty in various parts of the world; (xviii) the
after-effects of the COVID-19 pandemic; (xix) political uncertainty caused by,
among other things, political parties, economic nationalist sentiments, tensions
surrounding the current socioeconomic landscape, and other risks identified from
time-to-time in other public documents the Company files with the SEC.

General



The Company derives consolidated revenue and net income from investment advisory
and fund administration services provided by DHCM. DHCM is a registered
investment adviser under the Investment Advisers Act of 1940, as amended. DHCM
sponsors, distributes, and provides investment advisory and related services to
clients through pooled investment vehicles, including the Funds, DHMF,
separately managed accounts, and model delivery programs.

DHCM is committed to generating excellent, long-term investment outcomes and
building enduring client partnerships. By committing to shared investment
principles, including valuation-disciplined active portfolio management,
fundamental bottom-up research, and a long-term business owner mindset, DHCM has
created a suite of investment strategies designed for long-term strategic
allocations from institutionally-oriented investors. DHCM's core values of
curiosity, ownership, trust, and respect create an environment where investment
professionals focus on results and all teammates focus on the overall client
experience. The combination of these investment principles and core values
creates an aligned boutique model ensuring the Company's associates have a
vested interest in the Company's clients' success. This alignment with clients
is emphasized through: (i) personal investment by Company employees in the
strategies managed, (ii) a fee philosophy focused on a fair sharing of the
economics among clients, employees, and shareholders, (iii) a strict adherence
to capacity discipline ensuring the ability to add value for existing clients,
and (iv) compensation driven by the value created for clients.

The Company's primary objective is to fulfill its fiduciary duty to its clients.
The Company believes this focus on generating excellent, long-term investment
outcomes and building enduring client partnerships will enable it to grow its
intrinsic value to achieve a compelling, long-term return for its shareholders.

Assets Under Management



The Company derives revenue primarily from DHCM's investment advisory and
administration fees. Investment advisory and administration fees paid to DHCM
are generally based on the value of the investment portfolios it manages and
fluctuate with changes in the total value of its AUM. The Company, through DHCM,
recognizes revenue when it satisfies its performance obligations under the terms
of a contract with a client.
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The Company's revenues are highly dependent on both the value and composition of
AUM. The following is a summary of the Company's AUM by product and investment
objective, as well as a roll-forward of the change in AUM, for the three- and
six-month periods ended June 30, 2022 and 2021:

                                                Assets Under Management
                                                     As of June 30,
(in millions, except percentages)           2022               2021        % Change
Proprietary funds                   $     16,494            $ 22,004          (25) %
Sub-advised funds                          3,137               3,651          (14) %
Separately managed accounts                6,158               6,705           (8) %
Total AUM                           $     25,789            $ 32,360          (20) %


                                                           Assets Under Management
                                                            by Investment Strategy
                                                                As of June 30,
(in millions, except percentages)                      2022               2021        % Change
U.S. Equity
Large Cap                                      $     17,153            $ 19,604          (13) %
Small-Mid Cap                                         2,624               3,042          (14) %
Mid Cap                                                 904               1,081          (16) %
Small Cap                                               404                 603          (33) %
All Cap Select                                          417                 419            -  %
Large Cap Concentrated                                   82                  50           64  %
Micro Cap                                                13                  11           18  %
  Total U.S. Equity                                  21,597              24,810          (13) %

Alternatives
Long-Short                                            1,894               2,058           (8) %
  Total Alternatives                                  1,894               2,058           (8) %

Global/International Equity
International                                            49                  21          133  %
Global(a)                                                 -                  17              NM
  Total Global/International Equity                      49                  38           29  %

Fixed Income
Short Duration Securitized Bond                       1,497               1,345           11  %
Core Fixed Income                                       734                 710            3  %
Long Duration Treasury                                   37                  50          (26) %
  Total Fixed Income                                  2,268               2,105            8  %

Other
Corporate Credit                                          -               2,266              NM
High Yield                                                -               1,148              NM
  Total Other(b)                                          -               3,414              NM

  Total-All Strategies                               25,808              32,425          (20) %
 (Less: Investments in affiliated funds)(c)             (19)                (65)         (71) %
Total AUM                                      $     25,789            $ 32,360          (20) %


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(a) The Diamond Hill Global Fund was liquidated on December 17, 2021.

(b) The High Yield-Focused Advisory Contracts were sold to Brandywine Global effective July 30, 2021.



(c) Certain of the Funds own shares of the Diamond Hill Short Duration
Securitized Bond Fund. The Company reduces the total AUM by the investments held
in this affiliated fund.


                                                                              Change in Assets
                                                                              Under Management
                                                                        For the Three Months Ended
                                                                                  June 30,
(in millions)                                                             2022                  2021
AUM at beginning of the period                                      $       30,322          $  30,582
Net cash inflows (outflows)
proprietary funds                                                             (428)               260
sub-advised funds                                                             (157)               (99)
separately managed accounts                                                     70                389
                                                                              (515)               550
Net market appreciation (depreciation) and income                           (4,018)             1,228
Increase (decrease) during the period                                       (4,533)             1,778
AUM at end of the period                                            $       

25,789 $ 32,360



Average AUM during the period                                       $       28,177          $  32,095

                                                                              Change in Assets
                                                                              Under Management
                                                                         For the Six Months Ended
                                                                                  June 30,
(in millions)                                                             2022                  2021
AUM at beginning of the period                                      $       31,028          $  26,411
Net cash inflows (outflows)
proprietary funds                                                             (255)             1,987
sub-advised funds                                                             (182)               (57)
separately managed accounts                                                    158                214
                                                                              (279)             2,144

Net market appreciation (depreciation) and income                           (4,960)             3,805
Increase (decrease) during the period                                       (5,239)             5,949
AUM at end of the period                                            $       

25,789 $ 32,360



Average AUM during the period                                       $       29,262          $  30,146




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                                                                         Net Cash Inflows (Outflows)
                                                                              Further Breakdown
                                                                       For the Three Months Ended June
                                                                                     30,
(in millions)                                                              2022                 2021
Net cash inflows (outflows)
Equity                                                                $       (576)         $      65
Fixed Income                                                                    61                485
                                                                      $       (515)         $     550

                                                                         Net Cash Inflows (Outflows)
                                                                              Further Breakdown
                                                                      For the Six Months Ended June 30,
(in millions)                                                              2022                 2021
Net cash inflows (outflows)
Equity                                                                $       (383)         $   1,200
Fixed Income                                                                   104                944
                                                                      $       (279)         $   2,144


AUM decreased $4.5 billion during the three months ended June 30, 2022, due
primarily to depreciation in the financial markets, and net outflows out of the
Company's strategies during the period. The Company experienced equity outflows
during the period which were partially offset by flows into its Core Bond
strategy. Equity outflows were primarily out of the Company's Large Cap
strategy.

AUM decreased $5.2 billion during the six months ended June 30, 2022, due
primarily to depreciation in the financial markets and net outflows out of the
Company's strategies. The Company experienced equity outflows during the period
which were partially offset by flows into its Core Bond strategy. Equity
outflows were primarily out of the Company's Large Cap strategy.

Model Delivery Programs - Assets Under Advisement



DHCM provides strategy-specific model portfolios to sponsors of model delivery
programs. DHCM does not have discretionary investment authority over individual
client accounts in model delivery programs, and therefore, these assets are not
included in the Company's AUM. Rather, the Company refers to these model
delivery assets as assets under advisement ("AUA"). DHCM is paid for its
services by the program sponsor at a pre-determined rate based on the amount of
AUA in the program. Model delivery AUA was $1.8 billion as of June 30, 2022,
$2.1 billion as of December 31, 2021, and $1.8 billion as of June 30, 2021.

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