Investments (Notes)

12 Months Ended

Dec. 31, 2019

Investments, Debt and Equity Securities [Abstract]

The following table summarizes the carrying value of investments as of December 31, 2019 and 2018:



	As of December 31,
	2019		2018
Fair value investments:
Securities held in Consolidated Funds^(a)	$	36,248,360	$	153,730,480
Company sponsored investments	42,039,044		33,418,088
Company sponsored equity method investments	61,149,774		16,339,649
Total Investments	$	139,437,178	$	203,488,217

(a) Of the securities held in the Consolidated Funds as of December 31, 2019, $21.1 million were held directly by the Company and $15.1 million were held by noncontrolling shareholders. Of the securities held in the Consolidated Funds as of December 31, 2018, $84.7 million were held directly by the Company and $69.0 million were held by noncontrolling shareholders.

As of December 31, 2019, our securities held in Consolidated Funds consisted of the Diamond Hill Global Fund and the Diamond Hill International Fund as our ownership percentage in these investments was greater than 50%.

During the year ended December 31, 2019, the Company began consolidating the Diamond Hill International Fund as ownership increased above 50% and deconsolidated the ETF, the Diamond Hill Core Bond Fund and the Diamond Hill High Yield Fund as our ownership in each declined to less than 50%.

As of December 31, 2018, our securities held in Consolidated Funds consisted of the ETF, the Diamond Hill Core Bond Fund, the Diamond Hill Global Fund, and the Diamond Hill High Yield Fund as our ownership percentage in these investments was greater than 50%. During the year ended December 31, 2018, the Company consolidated the Diamond Hill Global Fund and the Diamond Hill High Yield Fund as our ownership interest in each increased to above 50%.

The components of net investment income (loss) are as follows:



	For the Year Ended December 31,
	2019		2018			2017
Realized gains	$	9,056,152	$	2,143,695		$	2,497,707
Unrealized gains (losses)	15,086,747		(16,067,048		)	8,077,335
Dividends	5,350,146		2,814,026			2,248,185
Interest	987,240		4,857,261			1,195,995
Other investment income (loss)	27,090		(20,612		)	(1,629		)
Investment income (loss), net	$	30,507,375	$	(6,272,678	)	$	14,017,593

Company Sponsored Equity Method Investments

As of December 31, 2019, our equity method investments consisted of the Diamond Hill Research Opportunities Fund and the Diamond Hill Core Bond Fund, and our ownership percentage in each of these investments was 23% and 36%, respectively. During the first half of 2019 there were periods of time where our ownership in the Diamond Hill High Yield Fund was between 20% and 50%, and thus, a portion of its income is included in the table below for the year ended December 31, 2019. During the first half of 2019 there were periods of time where our ownership in the Diamond Hill Core Bond Fund was greater than 50%, and thus, a portion of its income is excluded from the table below for the year ended December 31, 2019.

As of December 31, 2018, our equity method investment consisted of the Diamond Hill Research Opportunities Fund, and our ownership percentage in this investment was 28% and its income is included in the table below for the year ended December 31, 2018. For the year ended December 31, 2017, our equity method investments consisted of the Diamond Hill Research Opportunities Fund and the Diamond Hill High Yield Fund, as our ownership percentage in each of these investments were 26% and 48%, respectively, thus their income is included in the table below.

The Company’s equity method investments consist of cash, marketable equity securities and fixed income securities. The following table includes the condensed summary financial information from the Company’s equity method investments as of December 31, 2019 and 2018 and for the years ended December 31, 2019, 2018 and 2017:



			As of December 31,
			2019			2018
Total assets			$	237,073,628		$	80,845,124
Total liabilities			38,453,935			22,287,437
Net assets			198,619,693			58,557,687
DHCM’s portion of net assets			61,149,774			16,339,649

	For the Year Ended December 31,
	2019		2018			2017
Investment income	$	5,346,588	$	1,154,007		$	2,944,836
Expenses	1,551,291		978,322			1,176,896
Net realized gains	6,390,727		1,918,661			4,432,850
Net change in unrealized appreciation (depreciation)	14,805,837		(10,229,319		)	5,613,627
Net income (loss)	24,991,861		(8,134,973		)	11,814,417
DHCM’s portion of net income (loss)	8,301,571		(2,400,467		)	3,206,702