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<SEC-DOCUMENT>0000909108-09-000045.txt : 20091106
<SEC-HEADER>0000909108-09-000045.hdr.sgml : 20091106
<ACCEPTANCE-DATETIME>20091106162158
ACCESSION NUMBER:		0000909108-09-000045
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20091106
ITEM INFORMATION:		Results of Operations and Financial Condition
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20091106
DATE AS OF CHANGE:		20091106

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			DIAMOND HILL INVESTMENT GROUP INC
		CENTRAL INDEX KEY:			0000909108
		STANDARD INDUSTRIAL CLASSIFICATION:	INVESTMENT ADVICE [6282]
		IRS NUMBER:				650190407
		STATE OF INCORPORATION:			OH
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-24498
		FILM NUMBER:		091165043

	BUSINESS ADDRESS:	
		STREET 1:		325 JOHN H MCCONNELL BLVD
		STREET 2:		SUITE 200
		CITY:			COLUMBUS
		STATE:			OH
		ZIP:			43215
		BUSINESS PHONE:		6142553333

	MAIL ADDRESS:	
		STREET 1:		325 JOHN H MCCONNELL BLVD
		STREET 2:		SUITE 200
		CITY:			COLUMBUS
		STATE:			OH
		ZIP:			43215

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	BANC STOCK GROUP INC
		DATE OF NAME CHANGE:	19971016

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	HEARTLAND GROUP OF COMPANIES INC
		DATE OF NAME CHANGE:	19940301

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	HEARTLAND FINANCIAL GROUP INC
		DATE OF NAME CHANGE:	19930714
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>x8k-1109.txt
<DESCRIPTION>DIAMOND HILL INVESTMENT GROUP, INC. 8-K
<TEXT>
                                 UNITED STATES

                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

                             _______________________

                                    FORM 8-K

                                 CURRENT REPORT

                             _______________________

                     PURSUANT TO SECTION 13 OR 15(D) OF THE
                         SECURITIES EXCHANGE ACT OF 1934

                Date of Report (Date of earliest event reported):

                                 November 6, 2009

                       Diamond Hill Investment Group, Inc.
- ------------------------------------------------------------------------------
             (Exact Name of Registrant as Specified in its Charter)

                                      Ohio
- ------------------------------------------------------------------------------
                 (State or Other Jurisdiction of Incorporation)

             000-24498                              65-0190407
- ------------------------------------------------------------------------------
      (Commission File Number)         (I.R.S. Employer Identification No.)

      325 John H. McConnell Blvd, Suite 200, Columbus, Ohio              43215
- ------------------------------------------------------------------------------
      (Address of Principal Executive Offices)                    (Zip Code)

Registrant's Telephone Number, Including Area Code:   (614) 255-3333


- ------------------------------------------------------------------------------
          (Former Name or Former Address, if Changed Since Last Report)



<PAGE>

Item 2.02   Results of Operations and Financial Condition
- ---------   ---------------------------------------------

Registrant has reported its results of operations for the fiscal quarter
ended September 30, 2009, as described in Registrant's press release dated
November 6, 2009, a copy of which is filed herewith as Exhibit 99.1 and
incorporated herein by reference.

Item 9.01.     Financial Statements and Exhibits
- ---------   ---------------------------------------------

Exhibit No.   Document
- -----------   --------

99.1          Press release issued by the Registrant dated November 6, 2009.



                                    SIGNATURE
                                    ---------

     Pursuant to the  requirements  of the Securities  Exchange Act of 1934,
the registrant  has duly  caused  this  report  to be  signed  on its  behalf
by the undersigned hereunto duly authorized.

                                        DIAMOND HILL INVESTMENT GROUP, INC.


Date: November 6, 2009                 	    By: /s/ James F. Laird
                                            -------------------------------
                                            James F. Laird, Chief Financial
                                             Officer and Secretary
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>2
<FILENAME>ex991-1109.txt
<DESCRIPTION>PRESS RELEASE
<TEXT>



					^
                          	 Diamond Hill
                                 ------------
                                 Investments


FOR IMMEDIATE RELEASE:
					Investor Contact:
					James F. Laird-Chief Financial Officer
					614-255-3353 (jlaird@diamond-hill.com)

DIAMOND HILL INVESTMENT GROUP, INC.
REPORTS RESULTS FOR THIRD QUARTER 2009

	Columbus, Ohio - November 6, 2009 - Diamond Hill Investment Group, Inc.
(NASDAQ:DHIL) today reported unaudited results for the quarter ended September
30, 2009.  The operating results for the third quarter and first nine months
of 2009 are summarized in the following paragraphs.  However, we urge
investors to read our 10-Q.  The limited information that follows in this press
release is not adequate for making an informed investment judgment.  For this
reason, whenever possible, we will post our report on a Friday afternoon so
that investors have a maximum amount of time to digest the information
contained therein.

Assets under management ended the quarter at $5.49 billion, a decrease of 1%
compared to the third quarter of 2008 and an increase of 22% compared to the
year ended December 31, 2008.  Revenue decreased 15% to $11.4 million for the
third quarter of 2009 compared to the third quarter of 2008.  Net income for
the quarter was $3.20 million, or $1.23 per diluted share, compared to net
income of $1.22 million or $0.50 per diluted share, in the third quarter of
2008.  The primary contributor to the increase in net income was a positive
investment return of $2.06 million, or $0.79 per diluted share, in the quarter.

Ric Dillon, president and chief investment officer, stated, "Our primary
business objective is to fulfill our fiduciary responsibility to our clients by
achieving excellent long term investment returns.  I am pleased that our
strategies have generally outperformed their benchmarks over the past five
years."

Jim Laird, chief financial officer, stated, "New client investments for the
first nine months of 2009 were $148 million, down significantly from the $1.954
billion for the same period in 2008.  In the third quarter, net flows into
separate accounts were $80 million and, year to date, we have had $423 million
in net flows in separate accounts.  After experiencing outflows of over $130
million in each of the first two quarters, the mutual funds had net inflows of
$40 million in the third quarter.  Over the past year we have seen strong
growth in our long only strategies and a decline in our long short strategies.
The result of this shift in asset mix is that our overall effective investment
advisory fee is reduced."

					     Three Months Ended September 30,
			                    2009	    2008	Change
Revenue				        $11,371,644 	$13,347,900	-15%
    Net operating income		  2,848,569 	  4,221,993 	-33%
    Operating margin		     	    25%	     	    32%
    Operating margin -
	Excluding Beacon Hill		    27%		    35%
Investment return			  2,064,283	 -2,319,263	 nm
Net income 		 		  3,203,918 	  1,224,391 	162%
Earnings per share - diluted		   $1.23 	   $0.50 	146%

					     Nine Months Ended September 30,
					    2009	    2008	Change
Revenue					$29,848,811 	$36,646,835 	-19%
    Net operating income		 $7,508,523 	$11,803,191 	-36%
    Operating margin		    	    25%	    	    32%
    Operating margin -
	Excluding Beacon Hill		    28%		    35%
Investment return			  4,517,328	 -4,025,376	 nm
Net income 				 $7,871,645 	 $4,989,453 	 58%
Earnings per share - diluted		   $3.05 	   $2.08 	 47%


			  			    As Of
                             September 30, 	 December 31, 	 September 30,
				 2009		    2008	     2008
Assets under management
  (millions)		  	   $5,489 	      $4,510 	       $5,548
Tangible book value per
  share (a)			   $17.27 	      $12.36 	       $22.54
Total outstanding shares	2,612,214 	   2,447,299 	    2,465,927

(a) - A $10 per share special dividend was declared and paid in October 2008.

Beacon Hill Fund Services - In April 2009, Beacon Hill received final approval
from FINRA to operate its registered broker dealer, BHIL Distributors, Inc.
During the three months ended September 30, 2009, Beacon Hill generated an
operating loss of $143 thousand on revenue of $330 thousand compared to an
operating loss of $460 thousand on revenue of $28 thousand for the three
months ended September 30, 2008. For the nine months ended September 30, 2009,
Beacon Hill generated an operating loss of $822 thousand on revenue of $571
thousand compared to an operating loss of $1.027 million on revenue of $48
thousand for the nine months ended September 30, 2008. The company continues
to believe that Beacon Hill will achieve a run rate breakeven by the end of
2009 and generate an operating profit in 2010.

Assets Under Management - As of September 30, 2009, assets under management
("AUM") totaled $5.5 billion, a 1% decrease in comparison to September 30,
2008.  The following is a roll-forward of AUM activity for the nine months
ended September 30, 2009 and 2008:


						Change in Assets Under Management
					    For the Nine Months Ended September 30,
(in millions)						2009		2008
AUM at beginning of the period		       	       $4,510 	       $4,403
Net cash inflows (outflows)
	mutual funds	 				(229)	        1,482
	separate accounts	 		  	  423 	 	  545
	private investment funds	 	 	 (46)	 	 (73)
		 				  	  148 	 	1,954
Net market appreciation (depreciation) and income	  831 	 	(809)
Increase during the period		 		  979 	 	1,145
AUM at end of the period		 	       $5,489 	       $5,548


About Diamond Hill:
Diamond Hill provides investment management services to institutions and
financial intermediaries seeking to preserve and build capital. The firm
currently manages mutual funds, separate accounts and private investment
funds.  For more information on Diamond Hill, visit www.diamond-hill.com.

Use of Supplemental Data as Non-GAAP Performance Measure
Net Operating Income After Tax

As supplemental information, we are providing performance measures that are
based on methodologies other than generally accepted accounting principles
("non-GAAP") for "Net Operating Income After Tax" that management uses as
benchmarks in evaluating and comparing the period-to-period operating
performance of Diamond Hill Investment Group, Inc. (the "Company") and
its subsidiaries.

The Company defines "net operating income after tax" as the Company's net
operating income less income tax provision excluding investment return and
the tax impact related to the investment return. The Company believes that
"net operating income after tax" provides a good representation of the
company's operating performance as it excludes the impact of investment
return on financial results. The amount of the investment portfolio and
market fluctuations on the investments can fluctuate significantly from
one period to another, as seen over the past year, which can distort the
underlying earnings potential of a company. We also believe "net operating
income after tax" is an important metric in estimating the value of an
asset management business. This measure is provided in addition to net
income and net operating income and is not a substitute for net income or
net operating income and may not be comparable to non-GAAP performance
measures of other companies.


		 			    Three Months Ended September 30,
						   2009		  2008
Net Operating Income, GAAP basis 		$2,848,569     $4,221,993
Non-GAAP Adjustments:
  Tax Provision excluding impact
    of Investment Return 		 	   990,874 	1,505,175
Net operating income after tax,
  non-GAAP basis 	 			 1,857,695 	2,716,818

Net operating income after tax per
  diluted share, non-GAAP basis    		     $0.71 	    $1.11

Diluted weighted average shares outstanding,
  GAAP basis 		 			 2,611,933 	2,444,340


					     Nine Months Ended September 30,
						   2009		  2008
Net Operating Income, GAAP basis 		$7,508,523    $11,803,191
Non-GAAP Adjustments:
  Tax Provision excluding impact
    of Investment Return 	 		 2,593,742 	4,231,467
Net operating income after tax,
  non-GAAP basis 	 			 4,914,781 	7,571,724

Net operating income after tax per
  diluted share, non-GAAP basis 		     $1.91 	    $3.16


Diluted weighted average shares outstanding,
  GAAP basis 		 			 2,576,657 	2,396,999


The Company's management does not promote that investors consider the above
non-GAAP financial measures alone, or as a substitute for, financial
information prepared in accordance with GAAP.

                  -------------------------------------

Throughout this press release, the Company may make forward-looking
statements within the meaning of Section 27A of the Securities Act of 1933
and Section 21E of the Securities Exchange Act of 1934 relating to such
matters as growth of the Company's business, corporate objectives, prospects
for achieving the critical threshold of assets under management, operating
margins, economic trends (including interest rates and market volatility),
intrinsic value of the Company's shares and similar matters. The words
"believe," "expect," "anticipate," "estimate," "should," "could," "goal"
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, the actual results and experiences of the Company could differ
materially from the anticipated results or other expectations expressed by
the Company in its 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: the adverse
effect from a decline in the securities markets; a decline in the
performance of the Company's products; changes in interest rates; a general
downturn in the economy; changes in government policy and regulation,
including monetary policy; changes in the Company's ability to attract or
retain key employees; unforeseen costs and other effects related to legal
proceedings or investigations of governmental and self-regulatory
organizations; and other risks identified from time-to-time in the Company's
other public documents on file with the SEC.

					###

            325 John H. McConnell Blvd, Suite 200, Columbus, Ohio 43215
                         614-255-3333  fax 614-255-3363
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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