What are Diamond Hill Investment Group Inc's Business Segments?
The Company’s principal source of revenue is investment advisory fee
income earned from managing client accounts under investment advisory and sub-advisory
agreements. The fees earned depend on the type of investment strategy, account
size and servicing requirements. Revenues depend on the total value and composition
of assets under management (“AUM”). Accordingly, net cash flows
from clients, market fluctuations in client portfolios, and the composition
of AUM impact our revenues and results of operations. We also have certain agreements
which allow us to earn variable fees in the event that investment returns exceed
targeted amounts during a measurement period.
The Company believes that one of the most important characteristics exhibited
by the best investment firms is excellent investment returns for their clients
over a long period of time. We are pleased that, during our history as an investment
advisory firm, we have delivered what we believe are strong long-term investment
returns for our clients. Investment returns have been a key driver in the long-term
success we have achieved in growing assets under management ("AUM").
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