# EDGAR Filing Document

**Accession Number:** 0001032423
**File Stem:** 0001032423-23-000023
**Filing Date:** 2023-2
**Character Count:** 14644
**Document Hash:** 2e9101553ebf3bf90c2b7fb600263843
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001032423-23-000023.hdr.sgml**: 20230224

**ACCESSION NUMBER**: 0001032423-23-000023

**CONFORMED SUBMISSION TYPE**: 497K

**PUBLIC DOCUMENT COUNT**: 4

**FILED AS OF DATE**: 20230224

**DATE AS OF CHANGE**: 20230224

**EFFECTIVENESS DATE**: 20230224

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** DIAMOND HILL FUNDS
- **CENTRAL INDEX KEY:** 0001032423
- **IRS NUMBER:** 316547095
- **STATE OF INCORPORATION:** OH
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 497K
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 333-22075
- **FILM NUMBER:** 23665232

**BUSINESS ADDRESS:**
- **STREET 1:** 325 JOHN H. MCCONNELL BOULEVARD
- **STREET 2:** SUITE 200
- **CITY:** COLUMBUS
- **STATE:** OH
- **ZIP:** 43215
- **BUSINESS PHONE:** 614-255-3333

**MAIL ADDRESS:**
- **STREET 1:** 325 JOHN H. MCCONNELL BOULEVARD
- **STREET 2:** SUITE 200
- **CITY:** COLUMBUS
- **STATE:** OH
- **ZIP:** 43215

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** BSG FUNDS
- **DATE OF NAME CHANGE:** 19970206

## Series and Classes Contracts Data

### Diamond Hill Small Cap Fund (Series ID: S000003154)

| Class ID   | Class Name                           | Ticker Symbol   |
|:---|:---|:---|
| C000008530 | Diamond Hill Small Cap Fund Investor | DHSCX           |
| C000008532 | Diamond Hill Small Cap Fund Class I  | DHSIX           |
| C000108463 | Diamond Hill Small Cap Fund Class Y  | DHSYX           |

![dh-summaryxprospectusxsca.jpg](dh-summaryxprospectusxsca.jpg)

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| | | | |
|:---|:---|:---|:---|
| **Class** | **Investor** | **I** | **Y** |
| Ticker | DHSCX | DHSIX | DHSYX |

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Before you invest, you may want to review the fund's Prospectus, which contains information about the fund and its risks. The fund's Prospectus and Statement of Additional Information, both dated February 28, 2023, are incorporated by reference into this Summary Prospectus. For free paper or electronic copies of the fund's Prospectus and other information about the fund, go to https://diamond-hill.com/documents, email a request to info@diamond-hill.com, call 888-226-5595, or ask any financial advisor, bank, or broker-dealer who offers shares of the fund.

**Investment Objective**

The investment objective of the Diamond Hill Small Cap Fund is to provide long-term capital appreciation.

**Fees and Expenses of the Fund**

This table describes the fees and expenses that you may pay if you buy and hold shares of the fund. You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the tables and examples below.

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| |
|:---|
| **SHAREHOLDER FEES (fees paid directly from your investment)** |
| **None** |

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| | | | |
|:---|:---|:---|:---|
| **ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)** | **ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)** | **ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)** | **ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)** |
| | **Investor** | **Class I** | **Class Y** |
| **Management fees** | 0.80% | 0.80% | 0.80% |
| **Distribution (12b-1) fees** | 0.25% |  |  |
| **Other expenses** | 0.21% | 0.17% | 0.05% |
| **Total annual fund operating expenses** | **1.26%** | **0.97%** | **0.85%** |

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**EXPENSE EXAMPLE**<br>

This Example is intended to help you compare the cost of investing in the fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the fund's operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **1 Year** | **3 Years** | **5 Years** | **10 Years** |
| **Investor** | $128 | $400 | $692 | $1523 |
| **Class I** | 99 | 309 | 536 | 1190 |
| **Class Y** | 87 | 271 | 471 | 1049 |

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**PORTFOLIO TURNOVER**<br>

The fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the Example, affect the fund's performance. During the most recent fiscal year, the fund's portfolio turnover rate was 37% of the average value of its portfolio.

**Principal Investment Strategy**

The fund, under normal market conditions, invests at least 80% of its net assets in U.S. equity securities with small market capitalizations that Diamond Hill Capital Management, Inc. (the "Adviser") believes are undervalued. Equity securities consist of common and preferred stocks. Small cap companies are defined as companies with market capitalizations at the time of purchase below $3 billion or in the range of those market capitalizations of companies included in the Russell 2000 Index at the time of purchase. The capitalization range of the Russell 2000 Index is between $6.8 million and $7.8 billion as of January 31, 2023. The size of the companies included in the Russell 2000 Index will change with market conditions.

The Adviser focuses on estimating a company's value independent of its current stock price. To estimate a company's value, the Adviser concentrates on the fundamental economic drivers of the business. The primary focus is on "bottom-up" analysis, which takes into consideration earnings, revenue growth, operating margins and other economic factors. The Adviser also considers the level of industry competition, regulatory factors, the threat of technological obsolescence, and a variety of other industry factors. If the Adviser's estimate of a company's value differs sufficiently from the current market price, the company may be an attractive investment opportunity. In constructing a portfolio of securities, the Adviser is not constrained by the sector or industry weights in the benchmark. The Adviser relies on individual stock selection and discipline in the investment process to add value. The highest portfolio security weights are assigned to companies where the Adviser has the highest level of conviction.

Once a stock is selected, the Adviser continues to monitor the company's strategies, financial performance and competitive environment. The Adviser may sell a security as it reaches the Adviser's estimate of the company's value if it believes that the company's earnings, revenue growth, operating margin or other economic factors are deteriorating or if it identifies a stock that it believes offers a better investment opportunity.

**DIAMOND HILL FUNDS \| SUMMARY PROSPECTUS \| FEBRUARY 28, 2023\| DIAMOND-HILL.COM**

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| | |
|:---|:---|
| **Small Cap Fund Summary** | February 28, 2023 |

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**Main Risks**

All investments carry a certain amount of risk and the fund cannot guarantee that it will achieve its investment objective. An investment in the fund is not a deposit or obligation of any bank, is not endorsed or guaranteed by any bank, and is not insured by the Federal Deposit Insurance Corporation (FDIC) or any other government agency. You may lose money by investing in the fund. Below are the main risks of investing in the fund. All of the risks listed below are significant to the fund, regardless of the order in which they appear.

**Management Risk** The Adviser's judgments about the attractiveness, value and potential appreciation of a particular asset class or individual security in which the fund invests may prove to be incorrect and there is no guarantee that individual companies will perform as anticipated. The value of an individual company can be more volatile than the market as a whole, and the Adviser's intrinsic value-oriented approach may fail to produce the intended results.

**Market Risk** The value of the fund's investments may decrease, sometimes rapidly or unexpectedly, due to factors affecting an issuer held by the fund, particular industries or overall securities markets. When the value of the fund's investments goes down, your investment in the fund decreases in value. A variety of factors including interest rate levels, recessions, inflation, U.S. economic growth, war or acts of terrorism, natural disasters, political events, supply chain disruptions, staff shortages and widespread public health issues affect the securities markets. These events may cause volatility, severe market dislocations and liquidity constraints in many markets, including markets for the securities the fund holds, and may adversely affect the fund's investments and operations. In addition, governmental responses to these events may negatively impact the capabilities of the fund's service providers, disrupt the fund's operations, result in substantial market volatility and adversely impact the prices and liquidity of the fund's investments.

**Small Cap Company Risk** Investments in small cap companies may be riskier than investments in larger, more established companies. The securities of smaller companies may trade less frequently and in smaller volumes than securities of larger companies. In addition, smaller companies may be more vulnerable to economic, market and industry changes. As a result, share price changes may be more sudden or erratic than the prices of other equity securities, especially over the short term. Because smaller companies may have limited product lines, markets or financial resources or may depend on a few key employees, they may be more susceptible to particular economic events or competitive factors than large capitalization companies.

**Performance**

The following bar chart and table show two aspects of the fund: volatility and performance. The bar chart shows the volatility — or variability — of the fund's annual total returns over time, and shows that fund performance can change from year to year. The table shows the fund's average annual total returns for certain time periods compared to the returns of a broad-based securities index. The bar chart and table provide some indication of the risks of investing in the fund. Of course, the fund's past performance is not necessarily an indication of its future performance. *Updated performance information is available at no cost by visiting www.diamond-hill.com or by calling 888-226-5595*.

**CLASS I ANNUAL TOTAL RETURN-YEARS ENDED 12/31**

![chart-08387b067c824ff3aaaa.jpg](chart-08387b067c824ff3aaaa.jpg)

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| | |
|:---|:---|
| **Best Quarter:** | 4Q 2020, +26.68% |
| **Worst Quarter:** | 1Q 2020, -36.17% |

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**AVERAGE ANNUAL TOTAL RETURNS AS OF 12/31/22**

After-tax returns are calculated using the highest historical individual federal marginal income tax rate and do not reflect the impact of state and local taxes. Actual after-tax returns depend on a shareholder's tax situation and may differ from those shown. After-tax returns are not relevant for shareholders who hold fund shares in tax-deferred accounts or to shares held by non-taxable entities. After-tax returns are shown for Class I shares only and will vary from the after-tax returns for the other share classes.

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Inception<br>Date of Class** | **One Year** | **Five Year** | **Ten Year** |
| **Class I** Before Taxes | 4/29/05 | (14.77)% | 3.19% | 7.73% |
| &nbsp;&nbsp;&nbsp;After Taxes on Distributions |  | (17.96) | 0.83 | 5.93 |
| &nbsp;&nbsp;&nbsp;After Taxes on Distributions and Sale of Fund Shares |  | (6.59) | 2.41 | 6.14 |
| **Investor** Before Taxes | 12/29/00 | (15.02) | 2.89 | 7.43 |
| **Class Y** Before Taxes | 12/30/11 | (14.64) | 3.31 | 7.86 |
| Russell 2000 Index |  | (20.44) | 4.13 | 9.01 |

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The Russell 2000 Index measures the performance of roughly 2,000 US small-cap companies. The index is unmanaged, market capitalization weighted, includes net reinvested dividends, does not reflect fees or expenses (which would lower the return), and is not available for direct investment.

**DIAMOND HILL FUNDS \| SUMMARY PROSPECTUS \| FEBRUARY 28, 2023\| DIAMOND-HILL.COM**

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| | |
|:---|:---|
| **Small Cap Fund Summary** | February 28, 2023 |

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**Portfolio Management**

**Investment Adviser**

Diamond Hill Capital Management, Inc.

**Portfolio Managers**

Aaron Monroe

Portfolio Manager

since 2/2017

Christopher Welch

Assistant Portfolio Manager

since 4/2007

**Buying and Selling Fund Shares**

**Minimum Initial Investment**

Investor and Class I: $2,500

Class Y: $500,000

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| | |
|:---|:---|
| **To Place Orders** | Mail:<br>Diamond Hill Small Cap Fund<br>P.O. Box 46707<br>Cincinnati, OH 45246<br>Phone: 888-226-5595 |

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**Transaction Policies**

In general, you can buy or sell (redeem) shares of the fund by mail or phone on any business day. You can generally pay for shares by check or wire. You may be charged wire fees or other transaction fees; ask your financial professional. When selling shares, you will receive a check, unless you request a wire. You may also buy and sell shares through a financial professional.

**Dividends, Capital Gains and Taxes**

The fund's distributions may be taxable as ordinary income or capital gains, except when your investment is in an IRA, 401(k) or other tax-advantaged investment plan. However, you may be subject to tax when you withdraw monies from a tax-advantaged plan.

**Payments to Broker-Dealers and Other Financial Intermediaries**

If you purchase shares (other than Class Y shares) through a broker-dealer or other financial intermediary (such as a bank), the fund and its related companies may pay the intermediary for the sale of fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the fund over another investment. Ask your salesperson or visit your financial intermediary's web site for more information.

**DIAMOND HILL FUNDS \| SUMMARY PROSPECTUS \| FEBRUARY 28, 2023\| DIAMOND-HILL.COM**

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![dhnewbrandlogoa.jpg](dhnewbrandlogoa.jpg)

SUM-SC-022823

**DIAMOND HILL FUNDS \| SUMMARY PROSPECTUS \| FEBRUARY 28, 2023\| DIAMOND-HILL.COM**