Diamond Hill Investment Group's Bittersweet Ending
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Daniel JonesInvesting Group LeaderFollow5ShareSavePlay(11min)CommentsSummaryDiamond Hill Investment Group agreed to be acquired by First Eagle Investments at $175/share, a 49% premium to the prior close.Despite AUM and profitability growth, DHIL has faced persistent net outflows and underperformed the market, making the buyout bittersweet.The current valuation is decent but not compelling versus peers; the deal leaves limited upside, with a spread to buyout price of only 2.7%.A 35-day go-shop period offers a chance for a higher bid, justifying a 'hold' rating pending potential competing offers.pixelfit/E+ via Getty Images December 11th was a fantastic day for shareholders of Diamond Hill Investment Group (DHIL). Shares of the company rose around 45% after news broke that management had agreed to sell the business offThis article was written byDaniel Jones35.98K FollowersFollowDaniel is an avid and active professional investor. He runs Crude Value Insights, a value-oriented newsletter aimed at analyzing the cash flows and assessing the value of companies in the oil and gas space. His primary focus is on finding businesses that are trading at a significant discount to their intrinsic value by employing a combination of Benjamin Graham's investment philosophy and a contrarian approach to the market and the securities therein. Learn more.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.Recommended For You