After joining The Bank Stock Group Inc. in 2000, Ric Dillon quickly transformed the company into a money management firm, which was reincorporated as Diamond Hill Investment Group Inc. in September 2001. Since then, total assets under management have grown into the billions of dollars, and the firm now employs 50 people.
Dillon’s diverse investing strategy has played a big part in Diamond Hill’s growth, but as important has been Dillon’s approach to management, compensation and employee relations. When the company reincorporated in 2001, Dillon, as CEO, revitalized a stagnant board of directors by compensating them exclusively in the form of mutual fund shares, which must be held for the duration of the board member’s directorship.
Dillon takes the concept a step further, by paying approximately 60 percent of all bonuses to employees in the form of company stock.
The main risks that Diamond Hill now faces are directly related to the recent volatility and dramatic decline in global markets. Not only has the company’s fee-based earnings potential been negatively impacted, but so has its ability to attract new capital to investment vehicles.
Dillon and his leadership team have addressed these risks by emphasizing the merit of its combined long- and short-term investment strategy, which has helped Diamond Hill weather the economic downturn. Despite the decline of equity values in 2008, the company has maintained a fairly steady level of total assets under management, due to the acquisition of additional capital from new and existing investors.
It’s all part of a well-rounded leadership strategy that has allowed Dillon to keep Diamond Hill growing in tough times.
How to reach: Diamond Hill Investment Group Inc., (614) 255-3333 or www.diamond-hill.com