Diamond Hill Small Mid Cap Fund Class I (DHMIX) N-CSRS Certified semi-annual shareholder report (management investment company)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number: 811-08061

Diamond Hill Funds

(Exact name of registrant as specified in charter)

325 John H. McConnell Boulevard, Suite 200, Columbus, Ohio 43215

(Address of principal executive offices) (Zip code)

Thomas E. Line, 325 John H. McConnell Boulevard, Suite 200, Columbus, Ohio 43215

(Name and address of agent for service)

Registrant’s telephone number, including area code: 614-255-3333

Date of fiscal year end: December 31

Date of reporting period: June 30, 2015

Item 1. Reports to Stockholders.

Semi-Annual Report

June 30, 2015

Small Cap Fund	Long-Short Fund
Small-Mid Cap Fund	Research Opportunities Fund
Mid Cap Fund	Financial Long-Short Fund
Large Cap Fund	Strategic Income Fund
Select Fund

This material must be preceded or accompanied by a current prospectus.

Not FDIC Insured. May Lose Value. No Bank Guarantee.

Table of Contents

Letter to Shareholders	1
Mission Statement and Fundamental Principles	3
Financial Statements
Schedules of Investments	7
Statements of Assets & Liabilities	30
Statements of Operations	32
Statements of Changes in Net Assets	34
Financial Highlights	44
Notes to Financial Statements	62
Other Items	74
Schedule of Shareholder Expenses	75
Notice of Privacy Policy	77

Cautionary Statement: At Diamond Hill, we pledge that, “we will communicate with our clients about our investment performance in a manner that will allow them to properly assess whether we are deserving of their trust.” Our views and opinions regarding the investment prospects of our portfolio holdings and Funds are “forward looking statements” which may or may not be accurate over the long term. While we believe we have a reasonable basis for our opinions, actual results may differ materially from those we anticipate. Information provided in this report should not be considered a recommendation to purchase or sell any particular security.

You can identify forward looking statements by words like “believe,” “expect,” “anticipate,” or similar expressions when discussing prospects for particular portfolio holdings and/or one of the Funds. We cannot assure future results. You should not place undue reliance on forward-looking statements, which speak only as of the date of this report. We disclaim any obligation to update or alter any forward-looking statements, whether as a result of new information, future events, or otherwise.

This material is not authorized for distribution to prospective investors unless preceded or accompanied by a Prospectus. Investors should consider the investment objectives, risks, charges, and expenses of the Diamond Hill Funds carefully before investing. The prospectus or summary prospectus contain this and other important information about the Fund(s) and are available at diamond-hill.com or by calling 888.226.5595. Please read the prospectus or summary prospectus carefully before investing. The Diamond Hill Funds are distributed by BHIL Distributors, Inc. (Member FINRA), an affiliated company. Diamond Hill Capital Management, Inc., a registered investment adviser, serves as Investment Adviser to the Diamond Hill Funds and is paid a fee for its services. Diamond Hill Funds are not FDIC insured, may lose value, and have no bank guarantee.

Letter to Shareholders

Dear Fellow Shareholder:

We are pleased to provide this 2015 mid-year update for the Diamond Hill Funds. At Diamond Hill, we believe in true active portfolio management, managing high conviction, concentrated portfolios constructed independent of benchmark weights. Our intrinsic value investment philosophy is shared by all of our portfolio managers, allowing us to apply our investment discipline consistently across all strategies. We have intentionally structured our firm to maximize the potential to generate returns for our clients in excess of a passive alternative. Significant personal investment in our strategies helps to eliminate conflicts of interest, and portfolio manager incentives are structured to reward the long-term success of our clients. Our long-term investment horizon also allows us to focus on company fundamentals rather than short-term market noise. Finally, our portfolio managers have the authority to close their strategies before they reach an asset size where they believe they can no longer add sufficient value, protecting existing clients. With this in mind, we closed the Diamond Hill Long-Short Fund to most new investors effective June 12, 2015.

2015 Year-to-Date Market Review

U.S. equity markets rose during the first six months of 2015 with the Russell 1000 and Russell 3000 Indexes posting total returns of 1.71% and 1.94%, respectively. During the first quarter of 2015, equity markets were bolstered by accommodative central bank monetary policies around the globe and signs of stabilization in certain troubled economies. Exceptionally low interest rates encouraged investors to continue to seek riskier, but potentially more rewarding, assets for investment.

Near the end of the second quarter, U.S. equity markets pulled back from the record highs set in May with broad market benchmarks squeezing out a slightly positive total return for the quarter. The turning point in the quarter came with the news that Greece was likely to default on its debt. This, coupled with a slowing in corporate profit growth and the prospect of rising interest rates, was enough to send investors to the sidelines. Although these macro events influenced the broader market returns during the quarter, we do not expect the Greek debt crisis to have any material fundamental impact on the companies that we own. Any large scale default will likely influence global interest rates; but our fundamental view of a company’s underlying economic value is independent of interest rates.

Sector Results

Year-to-date, within the Russell 1000 Index of primarily large cap stocks, the health care sector (+11%) was the best performer, while utilities (-5%) was the worst performing sector. Health care benefited from continued significant merger and acquisition (M&A) activity as well the Supreme Court ruling on the Affordable Care Act in June. The ruling cleared the way for federal subsidies for health care recipients, which benefits hospitals and other health care service providers as more people will be covered for services. The ruling also removed lingering uncertainty for investors in these companies. The decline in companies within the utilities sector primarily reflected the anticipated hike in interest rates later this

DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2015 | DIAMOND-HILL.COM 1

Letter to Shareholders

year. Utility stocks have performed well in the recent low interest rate environment as investors seeking income invested in high dividend-yielding stocks.

Large cap stocks underperformed small cap stocks through the first half of 2015 as large multinational company earnings were negatively impacted by a stronger dollar. As a result, the Russell 1000 Index was up 1.71% year-to-date, compared to a 4.75% increase in the Russell 2000 Index.

Market Outlook

While the Fed may take initial steps to normalize monetary policy this year, we expect interest rates to remain at historically low levels, reflecting modest economic growth and inflation expectations that are below the Fed’s long-term target. The continued strength of the U.S. dollar is playing a key role in these developments as its relative appreciation has created new headwinds for growth while also pushing down commodity prices. The modest deleveraging of the U.S. household sector over the past few years continues to be a positive story. These lower debt levels combined with very low interest rates have allowed consumer debt-service burdens to improve to very low levels by historical standards.

Although the U.S. economy appears to be healing at a steady pace and set to maintain its 2-3% growth heading into next year, we continue to expect positive but below average equity market returns over the next five years. Our conclusion is primarily based on the combination of above average price/earnings multiples applied to already very strong levels of corporate profit margins, which likely tempers prospective returns. This expectation also seems consistent with the current interest rate environment. We believe that we can achieve better-than-market returns over the next five years through active portfolio management and stock selection independent of benchmark weights.

Chris Welch, CFA Portfolio Manager, Co-Chief Investment Officer	Austin Hawley, CFA Portfolio Manager, Co-Chief Investment Officer

The views expressed are those of the portfolio managers as of June 30, 2015, are subject to change, and may differ from the views of other portfolio managers or the firm as a whole. These opinions are not intended to be a forecast of future events, a guarantee of future results, or investment advice. All data referenced are from sources deemed to be reliable but cannot be guaranteed. Securities and sectors referenced should not be construed as a solicitation or recommendation or be used as the sole basis for any investment decision.

2 DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2015 | DIAMOND-HILL.COM

Our Mission

At Diamond Hill, we serve our clients by providing investment strategies that deliver lasting value through a shared commitment to our intrinsic value-based investment philosophy, long-term perspective, disciplined approach and alignment with our clients’ interests.

VALUE

We believe market price and intrinsic value are independent in the short-term but tend to converge over time.

LONG-TERM

We maintain a long-term focus both in investment analysis and management of our business.

DISCIPLINE

We invest with discipline to increase potential return and protect capital.

PARTNERSHIP

We align our interests with those of our clients through significant personal investment in our strategies.

DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2015 | DIAMOND-HILL.COM 3

Fundamental Principles

The Importance of Valuation

We believe that a company’s intrinsic value is independent of its stock price and that intrinsic value can be reasonably estimated using a discounted cash flow methodology. Our entire investment team shares the same investment philosophy, which drives our investment process.

We focus on the fundamentals of intrinsic value, which are far less volatile than market price, and our actions are ultimately dictated by the price to intrinsic value relationship.

There is no guarantee that a discount to intrinsic value will be achieved or that market price and/or intrinsic value will increase over time.

¹  The inverse is true for short position

4 DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2015 | DIAMOND-HILL.COM

Fundamental Principles

Equity Investment Principles

Valuation

• We believe that every share of stock has an intrinsic value that is independent of its current market price, and at any point in time, the market price may be higher or lower than intrinsic value.

• Over short periods of time, the market price is heavily influenced by the emotions of market participants, which are far more difficult to predict than intrinsic value. While market prices may experience extreme fluctuations on a particular day, we believe intrinsic value is far less volatile.

• Over sufficiently long periods of time, five years or longer, the stock market price tends to converge with intrinsic value.

Intrinsic Value Estimate

• We believe that we can determine a reasonable approximation of intrinsic value if we are confident in projecting the future cash flows of a business and use an appropriate discount rate.

Suitable Investments

• We only invest when the market price is lower than our conservative assessment of per share intrinsic value (or at a premium for short positions).

• We concentrate our investments in businesses whose per share intrinsic value is likely to increase. We invest in businesses that possess a competitive advantage, conservative balance sheet, and outstanding managers and employees. For short positions, the inverse is often true, and a growing intrinsic value is a detriment to the performance of the position.

Risk & Return

• We intend to achieve our return from both the closing of the gap between our purchase price and intrinsic value and the increase in per share intrinsic value. For short positions, an increasing intrinsic value may shorten the holding period.

• We define risk as the permanent loss of capital rather than price volatility. We manage risk by investing in companies selling at a discount (premium for short positions) to our estimate of intrinsic value.

DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2015 | DIAMOND-HILL.COM 5

Fundamental Principles

Fixed Income Investment Principles

Business Analysis

• We believe we can leverage our research team’s industry analysis of the fundamental economic drivers of the business to identify attractive corporate bonds and other senior corporate securities.

• We evaluate the quality of a firm’s management and their treatment of bondholders and stockholders. We believe managements that focus on growth, without regard to return on invested capital or long-term cost of capital, are more likely to destroy value for bondholders and stockholders. In contrast, managements that understand the competitive dynamics of their business and prudent capital allocation often produce value for both bondholders and stockholders.

Valuation

• We focus on the intrinsic value of the business in relation to the amount of debt in the capital structure. We also evaluate the sources and uses of cash for the business.

• The liquidity and expected volatility of a corporate bond are also important factors in valuation. Because of our long-term time horizon, we will invest in less liquid or more volatile securities; however, we require a higher yield as compensation.

Suitable Investments

• We generally invest in corporate bonds of companies with improving competitive positions and return on invested capital.

• Our core competency is the evaluation of credit risk. We typically favor lower duration, shorter maturity corporate bonds. We focus almost entirely on the secondary market for corporate bonds rather than the primary (new issue) market. We primarily invest in investment grade and below-investment grade (high yield) corporate bonds, including a significant allocation to defensive high yield corporate bonds (due to low duration and higher credit quality).

Risk & Return

• We define risk as the permanent loss of capital. We seek to avoid a permanent loss of capital and to earn a sufficient return on capital to grow our purchasing power.

• We expect to achieve our return objective by investing in corporate bonds when we believe the market price discounts a greater risk of default or a greater loss upon default than is warranted. An additional source of return exists when the market price provides attractive compensation for short-term illiquidity or volatility, both of which are of less concern to a long-term investor.

• We focus on credit risk, interest rate risk, liquidity risk, call risk, reinvestment risk and other risks when evaluating corporate bonds.

6 DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2015 | DIAMOND-HILL.COM

Diamond Hill Small Cap Fund

Schedule of Investments

June 30, 2015 (Unaudited)

	Shares		Fair Value
Common Stocks — 80.9%
Consumer Discretionary — 10.1%
Aaron’s, Inc.^		549,240	$	19,887,980
Callaway Golf Co.^		375,583		3,357,712
Carter’s, Inc.		96,830		10,293,029
Global Sources Ltd.*^		749,948		5,212,139
Hillenbrand, Inc.		408,595		12,543,867
Live Nation Entertainment, Inc.*		955,290		26,260,922
Steiner Leisure Ltd.*		630,686		33,918,292
Tenneco, Inc.*		416,740		23,937,546
Vail Resorts, Inc.		229,815		25,095,798
				160,507,285
Consumer Staples — 4.9%
B&G Foods, Inc.^		684,395		19,525,789
Energizer Holdings, Inc.		129,105		16,983,763
Flowers Foods, Inc.^		1,090,759		23,069,553
Post Holdings, Inc.*^		343,500		18,524,955
				78,104,060
Energy — 5.2%
Carrizo Oil & Gas, Inc.*		141,561		6,970,464
Cimarex Energy Co.		284,130		31,342,380
Contango Oil & Gas Co.*^		368,437		4,520,722
Rosetta Resources, Inc.*		909,285		21,040,855
Southwestern Energy Co.*^		177,485		4,034,234
Whiting Petroleum Corp.*		427,635		14,368,536
				82,277,191
Financials — 28.2%
Alleghany Corp.*		36,757		17,230,211
American Equity Investment Life Holding Co.		267,005		7,203,795
Assured Guaranty Ltd.		335,697		8,053,371
BankUnited, Inc.		729,510		26,211,294
BOK Financial Corp.^		186,835		12,999,979
Brown & Brown, Inc.^		1,179,925		38,772,335
Endurance Specialty Holdings Ltd.		331,645		21,789,077
Enstar Group Ltd.*		197,487		30,600,611
First Horizon National Corp.^		791,280		12,399,358
First Niagara Financial Group, Inc.^		658,720		6,218,317
First of Long Island Corp., The^		265,980		7,372,966

	Shares		Fair Value
Financials — 28.2% continued
Fortress Investment Group LLC, Class A		2,766,755	$	20,197,312
Greenlight Capital Re Ltd., Class A*		185,365		5,407,097
HCC Insurance Holdings, Inc.		417,625		32,090,304
Infinity Property & Casualty Corp.		99,920		7,577,933
iStar Financial, Inc. REIT*^		3,011,920		40,118,774
Mid-America Apartment Communities, Inc. REIT		251,774		18,331,665
National Penn Bancshares, Inc.		856,140		9,657,259
Nationstar Mortgage Holdings, Inc.*^		312,710		5,253,528
Navigators Group, Inc.*		550,828		42,722,219
Popular, Inc.*		1,183,793		34,164,265
Reinsurance Group of America		127,270		12,074,105
State Bank Financial Corp.^		342,875		7,440,388
Sterling Bancorp		775,960		11,406,612
Winthrop Realty Trust REIT		884,650		13,402,448
				448,695,223
Health Care — 8.5%
Alere, Inc.*		861,565		45,447,554
BioScrip, Inc.*^		2,165,865		7,862,090
Greatbatch, Inc.*		374,260		20,180,099
LifePoint Hospitals, Inc.*		143,865		12,509,062
Natus Medical, Inc.*		847,635		36,075,346
Universal American Financial Corp.*		1,326,486		13,424,038
				135,498,189
Industrials — 14.3%
Aircastle Ltd.		1,097,365		24,877,265
Alaska Air Group, Inc.		238,560		15,370,421
Avis Budget Group, Inc.*		979,110		43,159,168
Brink’s Co., The^		235,090		6,918,699
Colfax Corp.*^		316,070		14,586,631
Corrections Corp. of America^		562,623		18,611,569
Hub Group, Inc., Class A*		763,235		30,788,900
Hyster-Yale Materials Handling, Inc.		159,005		11,015,866
Kennametal, Inc.^		304,400		10,386,128

DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2015 | DIAMOND-HILL.COM 7

Diamond Hill Small Cap Fund

Schedule of Investments (Continued)

June 30, 2015 (Unaudited)

	Shares		Fair Value
Common Stocks — 80.9% continued
Industrials — 14.3% continued
Toro Co., The		188,380	$	12,768,396
TriMas Corp.*		427,850		12,664,360
Trinity Industries, Inc.^		1,004,915		26,559,903
				227,707,306
Information Technology — 6.6%
Broadridge Financial Solutions, Inc.		534,710		26,740,847
CommScope Holding, Inc.*		660,075		20,138,888
CSG Systems International, Inc.^		209,772		6,641,382
DST Systems, Inc.		366,090		46,120,017
Rovi Corp.*^		361,885		5,772,066
				105,413,200
Utilities — 3.1%
Cleco Corp.^		205,390		11,060,252
ITC Holdings Corp.^		470,923		15,154,302
UGI Corp.		670,640		23,103,548
				49,318,102
Total Common Stocks			$	1,287,520,556
Rights —     %
Health Care —     %
BioScrip, Inc., Strike Price $5.17*		2,165,865		—
Total Rights			$	—
Registered Investment Companies — 28.7%
State Street Institutional Liquid Reserves Fund, Premier Class, 0.11%S		302,939,215		302,939,215
State Street Navigator Securities Lending Prime Portfolio, 0.18%†S		154,208,481		154,208,481
Total Registered Investment Companies			$	457,147,696

	Fair Value
Total Investment Securities — 109.6%
(Cost $1,381,285,956)**	$	1,744,668,252
Net Other Assets (Liabilities) — (9.6)%		(152,626,699	)
Net Assets — 100.0%	$	1,592,041,553

* Non-income producing security.

^ All or a portion of the security is on loan. The total fair value of the securities on loan as of June 30, 2015 was $150,498,265.

† This security, which was purchased using cash collateral received from securities on loan, represents collateral for securities loaned as of June 30, 2015.

^S  Rate represents the daily yield on June 30, 2015.

** Represents cost for financial reporting purposes.

REIT – Real Estate Investment Trust

See accompanying Notes to Financial Statements

8 DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2015 | DIAMOND-HILL.COM

Diamond Hill Small-Mid Cap Fund

Schedule of Investments

June 30, 2015 (Unaudited)

	Shares		Fair Value
Common Stocks — 91.7%
Consumer Discretionary — 14.0%
Aaron’s, Inc.		470,539	$	17,038,217
Gannett Co., Inc.*		253,970		3,553,040
Goodyear Tire & Rubber Co., The		698,192		21,050,489
Jarden Corp.*		489,445		25,328,778
NVR, Inc.*		4,515		6,050,100
Staples, Inc.		1,229,705		18,826,784
Steiner Leisure Ltd.*		346,442		18,631,651
TEGNA, Inc.^		507,940		16,289,636
Whirlpool Corp.		96,450		16,690,673
				143,459,368
Consumer Staples — 10.6%
B&G Foods, Inc.^		615,863		17,570,571
Coty, Inc.^		284,575		9,097,863
Energizer Holdings, Inc.		78,345		10,306,285
Flowers Foods, Inc.^		1,093,853		23,134,991
Molson Coors Brewing Co., Class B		320,475		22,372,360
Post Holdings, Inc.*^		488,587		26,349,497
				108,831,567
Energy — 5.3%
Cimarex Energy Co.		334,135		36,858,433
Noble Energy, Inc.		146,915		6,270,332
Southwestern Energy Co.*^		490,065		11,139,177
				54,267,942
Financials — 27.7%
BankUnited, Inc.		474,605		17,052,558
BOK Financial Corp.^		211,100		14,688,338
Brown & Brown, Inc.		847,530		27,849,836
Endurance Specialty Holdings Ltd.		329,380		21,640,266
Enstar Group Ltd.*		35,820		5,550,309
First Horizon National Corp.^		1,032,490		16,179,118
First Republic Bank		299,035		18,848,175
Infinity Property & Casualty Corp.		83,855		6,359,563
iStar Financial, Inc. REIT*^		1,246,555		16,604,112
Mid-America Apartment Communities, Inc. REIT		158,250		11,522,183
National Penn Bancshares, Inc.		1,034,445		11,668,540
Nationstar Mortgage Holdings, Inc.*^		912,665		15,332,772

	Shares		Fair Value
Financials — 27.7% continued
Navigators Group, Inc.*		154,340	$	11,970,610
Popular, Inc.*		566,532		16,350,114
Reinsurance Group of America		80,050		7,594,344
Willis Group Holdings plc		1,152,090		54,033,020
XL Group plc^		244,930		9,111,396
				282,355,254
Health Care — 11.3%
Boston Scientific Corp.*		2,114,590		37,428,243
Catamaran Corp.*		334,810		20,450,195
LifePoint Hospitals, Inc.*		360,356		31,332,954
Orthofix International NV*		417,237		13,818,889
Universal American Financial Corp.*		1,237,739		12,525,919
				115,556,200
Industrials — 11.2%
Aircastle Ltd.		317,805		7,204,639
Brink’s Co., The^		247,335		7,279,069
Colfax Corp.*^		338,460		15,619,929
Corrections Corp. of America		251,306		8,313,202
Dover Corp.		274,438		19,260,059
Hub Group, Inc., Class A*		833,535		33,624,802
Kennametal, Inc.^		360,195		12,289,853
Knowles Corp.*^		288,936		5,229,742
Parker Hannifin Corp.		51,990		6,047,997
				114,869,292
Information Technology — 8.6%
Broadridge Financial Solutions, Inc.		124,660		6,234,247
CommScope Holding, Inc.*		270,685		8,258,599
CSG Systems International, Inc.^		194,035		6,143,148
Juniper Networks, Inc.		1,192,505		30,969,355
Keysight Technologies, Inc.*		178,785		5,576,304
Linear Technology Corp.		223,720		9,895,136
Vantiv, Inc., Class A*		535,770		20,461,056
				87,537,845
Utilities — 3.0%
Cleco Corp.		46,330		2,494,871
ITC Holdings Corp.^		325,590		10,477,486

DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2015 | DIAMOND-HILL.COM 9

Diamond Hill Small-Mid Cap Fund

Schedule of Investments (Continued)

June 30, 2015 (Unaudited)

Diamond Hill Mid Cap Fund

Schedule of Investments

June 30, 2015 (Unaudited)

	Shares		Fair Value
Common Stocks — 91.7% continued
Utilities — 3.0% continued
UGI Corp.		521,315	$	17,959,301
				30,931,658
Total Common Stocks			$	937,809,126
Registered Investment Companies — 22.6%
State Street Institutional Liquid Reserves Fund, Premier Class, 0.11%S		99,856,620		99,856,620
State Street Navigator Securities Lending Prime Portfolio, 0.18%†S		131,012,351		131,012,351
Total Registered Investment Companies			$	230,868,971
Total Investment Securities — 114.3%
(Cost $1,060,775,006)**			$	1,168,678,097
Net Other Assets (Liabilities) — (14.3)%				(145,846,758	)
Net Assets — 100.0%			$	1,022,831,339

* Non-income producing security.

^ All or a portion of the security is on loan. The total fair value of the securities on loan as of June 30, 2015 was $126,613,501.

^†  This security, which was purchased using cash collateral received from securities on loan, represents collateral for securities loaned as of June 30, 2015.

^S  Rate represents the daily yield on June 30, 2015.

** Represents cost for financial reporting purposes.

REIT – Real Estate Investment Trust

See accompanying Notes to Financial Statements

	Shares		Fair Value
Common Stocks — 93.1%
Consumer Discretionary — 15.5%
Aaron’s, Inc.^		6,859	$	248,364
Dollar General Corp.		2,463		191,474
Gannett Co., Inc.*		4,388		61,381
Goodyear Tire & Rubber Co., The		12,505		377,026
Jarden Corp.*^		8,472		438,426
NVR, Inc.*^		65		87,100
Staples, Inc.^		20,475		313,473
TEGNA, Inc.^		8,775		281,414
VF Corp.		4,055		282,796
Whirlpool Corp.^		3,126		540,953
				2,822,407
Consumer Staples — 11.8%
B&G Foods, Inc.^		10,280		293,288
Coty, Inc.^		5,175		165,445
Energizer Holdings, Inc.		1,295		170,357
Flowers Foods, Inc.^		20,036		423,762
Molson Coors Brewing Co., Class B^		5,282		368,736
Post Holdings, Inc.*^		7,460		402,318
Sysco Corp.^		8,575		309,558
				2,133,464
Energy — 5.7%
Cimarex Energy Co.^		7,063		779,119
Noble Energy, Inc.^		495		21,127
Southwestern Energy Co.*^		10,473		238,051
				1,038,297
Financials — 28.3%
Alleghany Corp.*		268		125,628
BankUnited, Inc.^		8,135		292,291
BOK Financial Corp.^		3,640		253,271
Brown & Brown, Inc.^		14,670		482,056
Endurance Specialty Holdings Ltd.		4,260		279,882
Enstar Group Ltd.*^		1,085		168,121
First Horizon National Corp.^		17,535		274,773
First Republic Bank^		5,175		326,180
Loews Corp.^		4,770		183,693
Mid-America Apartment Communities, Inc. REIT^		3,146		229,060
National Penn Bancshares, Inc.		18,663		210,519
Nationstar Mortgage Holdings, Inc.*^		15,726		264,197
Popular, Inc.*^		9,881		285,166

10 DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2015 | DIAMOND-HILL.COM

Diamond Hill Mid Cap Fund

Schedule of Investments (Continued)

June 30, 2015 (Unaudited)

	Shares		Fair Value
Common Stocks — 93.1% continued
Financials — 28.3% continued
Progressive Corp.^		6,692	$	186,238
Reinsurance Group of America^		1,384		131,300
SunTrust Banks, Inc.^		6,692		287,890
Willis Group Holdings plc^		20,137		944,426
XL Group plc^		5,741		213,565
				5,138,256
Health Care — 9.6%
Boston Scientific Corp.*^		45,928		812,926
Catamaran Corp.*		6,035		368,618
LifePoint Hospitals, Inc.*^		6,395		556,045
				1,737,589
Industrials — 9.9%
Colfax Corp.*^		5,650		260,748
Corrections Corp. of America^		5,457		180,518
Dover Corp.		5,750		403,534
Hub Group, Inc., Class A*^		9,445		381,011
Kennametal, Inc.^		6,401		218,402
Parker Hannifin Corp.^		3,041		353,760
				1,797,973
Information Technology — 8.0%
Broadridge Financial Solutions, Inc.^		2,875		143,779
CommScope Holding, Inc.*^		4,520		137,905
Juniper Networks, Inc.		20,611		535,268
Keysight Technologies, Inc.*		2,890		90,139
Linear Technology Corp.^		4,060		179,574
Vantiv, Inc., Class A*^		9,430		360,131
				1,446,796
Materials — 1.2%
Eastman Chemical Co.^		2,560		209,459
Utilities — 3.1%
Cleco Corp.		1,123		60,474
ITC Holdings Corp.^		5,849		188,220
UGI Corp.		9,169		315,872
				564,566
Total Common Stocks			$	16,888,807

	Shares		Fair Value
Registered Investment Companies — 36.1%
State Street Institutional Liquid Reserves Fund, Premier Class, 0.11%S		1,379,517	$	1,379,517
State Street Navigator Securities Lending Prime Portfolio, 0.18%†S		5,190,246		5,190,246
Total Registered Investment Companies			$	6,569,763
Total Investment Securities — 129.2%
(Cost $21,892,079)**			$	23,458,570
Net Other Assets (Liabilities) — (29.2)%				(5,307,598	)
Net Assets — 100.0%			$	18,150,972

* Non-income producing security.

^ All or a portion of the security is on loan. The total fair value of the securities on loan as of June 30, 2015 was $5,060,088.

^†  This security, which was purchased using cash collateral received from securities on loan, represents collateral for securities loaned as of June 30, 2015.

^S  Rate represents the daily yield on June 30, 2015.

** Represents cost for financial reporting purposes.

REIT – Real Estate Investment Trust

See accompanying Notes to Financial Statements

DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2015 | DIAMOND-HILL.COM 11

Diamond Hill Large Cap Fund

Schedule of Investments

June 30, 2015 (Unaudited)

	Shares		Fair Value
Common Stocks — 99.3%
Consumer Discretionary — 15.8%
BorgWarner, Inc.		724,245	$	41,166,086
Comcast Corp., Class A		1,158,555		69,675,498
Gannett Co., Inc.*		338,838		4,740,337
Goodyear Tire & Rubber Co., The		1,465,655		44,189,498
TEGNA, Inc.^		1,355,355		43,466,234
TJX Cos., Inc., The		1,175,235		77,765,300
Twenty-First Century Fox, Inc.		1,665,055		53,648,072
VF Corp.		897,020		62,558,175
Walt Disney Co., The		615,890		70,297,684
Whirlpool Corp.		403,070		69,751,264
				537,258,148
Consumer Staples — 9.4%
Kimberly-Clark Corp.		704,030		74,606,059
Philip Morris International		604,275		48,444,727
Procter & Gamble Co., The		1,462,001		114,386,958
Sysco Corp.		2,294,414		82,828,345
				320,266,089
Energy — 5.7%
Cimarex Energy Co.		589,760		65,056,426
Devon Energy Corp.		968,677		57,626,595
EOG Resources, Inc.		638,876		55,933,594
Occidental Petroleum Corp.		202,420		15,742,203
				194,358,818
Financials — 27.0%
American International Group, Inc.		1,781,345		110,122,747
Capital One Financial Corp.		1,069,200		94,057,524
Citigroup, Inc.		2,004,365		110,721,123
Franklin Resources, Inc.		898,985		44,077,235
JPMorgan Chase & Co.		1,606,903		108,883,747
Marsh & McLennan Cos., Inc.		1,283,390		72,768,213
MetLife, Inc.		841,740		47,129,023
Morgan Stanley		2,840,505		110,183,189
PNC Financial Services Group, Inc.		824,200		78,834,730
Progressive Corp.		2,482,065		69,075,869
Prudential Financial, Inc.		834,124		73,002,532
				918,855,932

	Shares		Fair Value
Health Care — 16.5%
Abbott Laboratories		2,353,027	$	115,486,564
Baxter International, Inc.		581,277		40,648,701
Boston Scientific Corp.*		5,166,675		91,450,148
Express Scripts Holding Co.*^		692,850		61,622,079
Medtronic plc		1,315,627		97,487,960
Pfizer, Inc.		3,420,967		114,705,024
Stryker Corp.		435,405		41,611,656
				563,012,132
Industrials — 8.9%
Dover Corp.		678,572		47,622,183
Illinois Tool Works, Inc.^		585,769		53,767,737
Parker Hannifin Corp.^		558,904		65,017,302
United Parcel Service, Inc.		288,438		27,952,527
United Technologies Corp.		980,637		108,782,062
				303,141,811
Information Technology — 13.6%
Apple Computer, Inc.		636,032		79,774,314
Cisco Systems, Inc.		2,104,128		57,779,355
Google, Inc., Class A*		117,669		63,545,967
International Business Machines Corp.		330,150		53,702,199
Juniper Networks, Inc.		1,466,035		38,072,929
Linear Technology Corp.^		722,445		31,953,742
Microsoft Corp.		2,058,220		90,870,413
Vantiv, Inc., Class A*		1,233,685		47,114,430
				462,813,349
Materials — 2.4%
Eastman Chemical Co.^		437,120		35,765,158
Praxair, Inc.		384,342		45,948,087
				81,713,245
Total Common Stocks			$	3,381,419,524

12 DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2015 | DIAMOND-HILL.COM

Diamond Hill Large Cap Fund

Schedule of Investments (Continued)

June 30, 2015 (Unaudited)

Diamond Hill Select Fund

Schedule of Investments

June 30, 2015 (Unaudited)

	Shares		Fair Value
Registered Investment Companies — 2.9%
State Street Institutional Liquid Reserves Fund, Premier Class, 0.11%S		26,555,682	$	26,555,682
State Street Navigator Securities Lending Prime Portfolio, 0.18%†S		71,748,039		71,748,039
Total Registered Investment Companies			$	98,303,721
Total Investment Securities — 102.2%
(Cost $2,667,172,148)**			$	3,479,723,245
Net Other Assets (Liabilities) — (2.2)%				(73,918,434	)
Net Assets — 100.0%			$	3,405,804,811

* Non-income producing security.

^ All or a portion of the security is on loan. The total fair value of the securities on loan as of June 30, 2015 was $66,635,303.

^†  This security, which was purchased using cash collateral received from securities on loan, represents collateral for securities loaned as of June 30, 2015.

^S  Rate represents the daily yield on June 30, 2015.

** Represents cost for financial reporting purposes.

See accompanying Notes to Financial Statements

	Shares		Fair Value
Common Stocks — 95.7%
Consumer Discretionary — 17.6%
Jarden Corp.*^		84,709	$	4,383,691
TJX Cos., Inc., The		44,187		2,923,854
Twenty-First Century Fox, Inc.		211,603		6,817,849
VF Corp.		27,913		1,946,653
Whirlpool Corp.^		38,617		6,682,671
				22,754,718
Consumer Staples — 6.0%
Philip Morris International		35,832		2,872,651
Post Holdings, Inc.*^		91,736		4,947,323
				7,819,974
Energy — 2.6%
Cimarex Energy Co.^		31,068		3,427,111
Financials — 30.2%
American International Group, Inc.		46,029		2,845,513
BankUnited, Inc.^		71,555		2,570,971
Brown & Brown, Inc.^		106,206		3,489,929
Citigroup, Inc.		45,118		2,492,318
Franklin Resources, Inc.^		84,497		4,142,888
iStar Financial, Inc. REIT*^		236,172		3,145,811
MetLife, Inc.		63,307		3,544,559
Nationstar Mortgage Holdings, Inc.*^		278,390		4,676,953
Navigators Group, Inc.*		17,058		1,323,018
Popular, Inc.*		124,247		3,585,768
Willis Group Holdings plc^		155,703		7,302,470
				39,120,198
Health Care — 11.7%
Alere, Inc.*^		50,600		2,669,150
Boston Scientific Corp.*^		36,399		644,262
LifePoint Hospitals, Inc.*^		55,325		4,810,509
Teva Pharmaceutical Industries Ltd. ADR		23,146		1,367,929
Valeant Pharmaceuticals International, Inc.*		25,722		5,714,142
				15,205,992
Industrials — 12.3%
Colfax Corp.*^		62,450		2,882,067
Hub Group, Inc., Class A*^		136,296		5,498,181
Parker Hannifin Corp.^		21,596		2,512,263
United Technologies Corp.		45,723		5,072,052
				15,964,563

DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2015 | DIAMOND-HILL.COM 13

Diamond Hill Select Fund

Schedule of Investments (Continued)

June 30, 2015 (Unaudited)

Diamond Hill Long-Short Fund

Schedule of Investments

June 30, 2015 (Unaudited)

	Shares		Fair Value
Common Stocks — 95.7% continued
Information Technology — 15.3%
Apple Computer, Inc.		33,619	$	4,216,663
Google, Inc., Class A *		7,635		4,123,205
International Business Machines Corp.		21,157		3,441,399
Juniper Networks, Inc.		70,021		1,818,445
Microsoft Corp.		69,381		3,063,171
Vantiv, Inc., Class A *		85,258		3,256,003
				19,918,886
Total Common Stocks			$	124,211,442
Registered Investment Companies — 32.9%
State Street Institutional Liquid Reserves Fund, Premier Class, 0.11%S		6,073,158		6,073,158
State Street Navigator Securities Lending Prime Portfolio, 0.18%†S		36,603,983		36,603,983
Total Registered Investment Companies			$	42,677,141
Total Investment Securities — 128.6%
(Cost $156,438,811)**			$	166,888,583
Net Other Assets (Liabilities) — (28.6)%				(37,083,833	)
Net Assets — 100.0%			$	129,804,750

* Non-income producing security.

^ All or a portion of the security is on loan. The total fair value of the securities on loan as of June 30, 2015 was $36,208,586.

^†  This security, which was purchased using cash collateral received from securities on loan, represents collateral for securities loaned as of June 30, 2015.

^S  Rate represents the daily yield on June 30, 2015.

** Represents cost for financial reporting purposes.

ADR ��� American Depositary Receipt

REIT – Real Estate Investment Trust

See accompanying Notes to Financial Statements

	Shares		Fair Value
Common Stocks — 80.8%
Consumer Discretionary — 16.1%
Comcast Corp., Class A		1,082,305	$	65,089,823
Gannett Co., Inc.*		806,793		11,287,027
Goodyear Tire & Rubber Co., The		1,772,815		53,450,372
Jarden Corp.*^		1,384,920		71,669,610
TEGNA, Inc.^		1,613,585		51,747,671
TJX Cos., Inc., The		1,052,180		69,622,752
Twenty-First Century Fox, Inc.		3,043,440		98,059,637
VF Corp.		980,780		68,399,597
Walt Disney Co., The^		754,466		86,114,749
Whirlpool Corp.^		608,985		105,384,854
				680,826,092
Consumer Staples — 4.9%
Kimberly-Clark Corp.		724,845		76,811,825
Procter & Gamble Co., The		994,985		77,847,626
Sysco Corp.^		1,400,672		50,564,259
				205,223,710
Energy — 5.4%
Cimarex Energy Co.^		909,609		100,338,970
Devon Energy Corp.		1,112,333		66,172,690
EOG Resources, Inc.^		686,597		60,111,567
				226,623,227
Financials — 25.4%
American International Group, Inc.^		1,780,795		110,088,747
Brown & Brown, Inc.^		1,920,515		63,108,123
Capital One Financial Corp.^		1,227,100		107,947,987
Citigroup, Inc.^		2,623,189		144,904,960
Franklin Resources, Inc.^		1,846,075		90,513,057
JPMorgan Chase & Co.^		1,110,695		75,260,693
MetLife, Inc.^		1,596,665		89,397,273
Morgan Stanley		1,278,935		49,609,889
PNC Financial Services Group, Inc.^		437,745		41,870,309
Popular, Inc.*		3,229,037		93,190,008
Progressive Corp.^		1,405,305		39,109,638
Prudential Financial, Inc.^		375,403		32,855,271
Wells Fargo & Co.^		260,365		14,642,928
Willis Group Holdings plc^		2,508,185		117,633,877
				1,070,132,760

14 DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2015 | DIAMOND-HILL.COM

Diamond Hill Long-Short Fund

Schedule of Investments (Continued)

June 30, 2015 (Unaudited)

	Shares		Fair Value
Common Stocks — 80.8% continued
Health Care — 9.5%
Abbott Laboratories^		2,350,385	$	115,356,895
Alere, Inc.*		1,029,060		54,282,915
Baxter International, Inc.^		505,971		35,382,552
Boston Scientific Corp.*		3,869,978		68,498,609
Medtronic plc^		624,527		46,277,451
Pfizer, Inc.^		2,474,860		82,982,056
				402,780,478
Industrials — 7.1%
Dover Corp.^		761,215		53,422,069
Illinois Tool Works, Inc.^		640,225		58,766,253
Parker Hannifin Corp.^		751,995		87,479,578
United Technologies Corp.		906,225		100,527,539
				300,195,439
Information Technology — 12.4%
Apple Computer, Inc.^		780,811		97,933,220
Cisco Systems, Inc.		1,840,910		50,551,389
Google, Inc., Class A*^		186,780		100,868,671
International Business Machines Corp.^		388,475		63,189,343
Juniper Networks, Inc.^		2,062,755		53,569,747
Microsoft Corp.^		1,707,044		75,365,993
Vantiv, Inc., Class A*^		2,196,650		83,890,063
				525,368,426
Total Common Stocks			$	3,411,150,132
Registered Investment Companies — 34.0%
State Street Institutional Liquid Reserves Fund, Premier Class, 0.11%S		569,791,123	$	569,791,123
State Street Navigator Securities Lending Prime Portfolio, 0.18%†S		868,030,675		868,030,675
Total Registered Investment Companies			$	1,437,821,798

	Fair Value
Total Investment Securities — 114.8%
Cost ($3,988,731,171)**	$	4,848,971,930
Segregated Cash With Custodian — 29.2%		1,236,344,269
Securities Sold Short — (23.6)%
(Proceeds $799,353,431)		(994,945,213	)
Net Other Assets (Liabilities) — (20.4)%		(862,754,655	)
Net Assets — 100.0%	$	4,227,616,331

* Non-income producing security.

^ All or a portion of the security is on loan. The total fair value of the securities on loan as of June 30, 2015 was $851,581,677.

^†  This security, which was purchased using cash collateral received from securities on loan, represents collateral for securities loaned as of June 30, 2015.

^S  Rate represents the daily yield on June 30, 2015.

** Represents cost for financial reporting purposes.

See accompanying Notes to Financial Statements

DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2015 | DIAMOND-HILL.COM 15

Diamond Hill Long-Short Fund

Schedule of Investments Sold Short

June 30, 2015 (Unaudited)

	Shares		Fair Value
Common Stocks — 23.6%
Consumer Discretionary — 7.3%
American Eagle Outfitters, Inc.		606,290	$	10,440,314
Brunswick Corp.		1,748,085		88,907,602
Cabela’s, Inc.*		356,425		17,814,122
Gap, Inc., The		370,605		14,145,993
Grand Canyon Education, Inc.*		590,230		25,025,752
Kohl’s Corp.		269,815		16,893,117
Macy’s, Inc.		1,223,550		82,552,919
New York Times Co., The, Class A		1,214,465		16,577,447
Tractor Supply Co.		396,973		35,703,752
				308,061,018
Consumer Staples — 2.7%
Campbell Soup Co.		715,735		34,104,772
Colgate-Palmolive Co.		558,875		36,556,014
ConAgra Foods, Inc.		669,355		29,264,201
Kellogg Co.		204,650		12,831,555
				112,756,542
Energy — 0.5%
BP plc		512,435		20,476,903
Financials — 5.2%
BancorpSouth, Inc.		405,040		10,433,830
Cincinnati Financial Corp.		777,190		38,999,394
First American Financial Corp.		1,344,285		50,020,845
Hanover Insurance Group, Inc.		720,550		53,342,317
Mercury General Corp.		372,780		20,745,207
Moody’s Corp.		114,325		12,342,527
RenaissanceRe Holdings Ltd.		240,770		24,440,563
Selective Insurance Group, Inc.		361,180		10,131,099
				220,455,782
Health Care — 2.4%
Abbvie, Inc.		510,170		34,278,322
Celgene Corp.*		266,660		30,861,895
Healthcare Services Group		547,980		18,110,739
Intuitive Surgical, Inc.*		40,520		19,631,940
				102,882,896

	Shares		Fair Value
Industrials — 2.5%
Boeing Co., The		748,245	$	103,796,546
Information Technology — 1.4%
LogMeIn, Inc.*		386,525		24,926,997
NETGEAR, Inc.*		338,690		10,167,474
Western Union Co.		1,213,415		24,668,727
				59,763,198
Materials — 0.5%
International Paper Co.		467,775		22,261,412
Telecommunication Services — 1.1%
AT&T, Inc.		652,645		23,181,951
Level 3 Communications, Inc.*		404,575		21,308,965
				44,490,916
Total Securities Sold Short — 23.6%
(Proceeds $799,353,431)			$	994,945,213

* Non-dividend expense producing security.

Percentages disclosed are based on total net assets of the Fund at June 30, 2015.

See accompanying Notes to Financial Statements

16 DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2015 | DIAMOND-HILL.COM

Diamond Hill Research Opportunities Fund

Schedule of Investments

June 30, 2015 (Unaudited)

	Shares		Fair Value
Common Stocks — 91.1%
Consumer Discretionary — 15.6%
Comcast Corp., Class A		7,310	$	439,623
Goodyear Tire & Rubber Co., The		34,000		1,025,100
Groupon, Inc.*		64,230		323,077
Jarden Corp.*		14,800		765,900
Liberty Global plc, Class A*		26,025		1,407,172
Steiner Leisure Ltd.*		11,441		615,297
TJX Cos., Inc., The		8,926		590,633
Twenty-First Century Fox, Inc.		94,730		3,052,201
Vail Resorts, Inc.		8,200		895,440
VF Corp.		11,650		812,471
Whirlpool Corp.		25,475		4,408,448
				14,335,362
Consumer Staples — 7.0%
B&G Foods, Inc.		50,165		1,431,207
Coty, Inc.		18,500		591,445
Philip Morris International		6,800		545,156
Post Holdings, Inc.*		50,298		2,712,572
Tesco plc ADR		119,010		1,190,695
				6,471,075
Energy — 2.8%
Cimarex Energy Co.		23,466		2,588,534
Financials — 20.6%
American International Group, Inc.		9,140		565,035
Ashmore Group plc (GB)		158,740		721,337
Brown & Brown, Inc.		62,960		2,068,866
Endurance Specialty Holdings Ltd.		7,285		478,625
Fortress Investment Group LLC, Class A		240,771		1,757,628
Franklin Resources, Inc.		18,160		890,385
iStar Financial, Inc. REIT*		138,530		1,845,220
MetLife, Inc.		12,330		690,357
Nationstar Mortgage Holdings, Inc.*		179,010		3,007,368
Navigators Group, Inc.*		10,075		781,417
Popular, Inc.*		68,025		1,963,202
Willis Group Holdings plc		89,015		4,174,803
				18,944,243
Health Care — 17.2%
Alere, Inc.*		22,755		1,200,327
Allergan Plc*		4,675		1,418,675
BioScrip, Inc.*		380,349		1,380,667

	Shares		Fair Value
Health Care — 17.2% continued
Boston Scientific Corp.*		28,454	$	503,636
Catamaran Corp.*		18,125		1,107,075
ENDO International Plc*		12,850		1,023,503
Express Scripts Holding Co.*		7,850		698,179
GlaxoSmithKline plc ADR		66,463		2,768,184
LifePoint Hospitals, Inc.*		11,745		1,021,228
Orthofix International NV*		18,032		597,220
Stryker Corp.		7,855		750,702
Teva Pharmaceutical Industries Ltd. ADR		11,525		681,128
Universal American Financial Corp.*		60,950		616,814
Valeant Pharmaceuticals International, Inc.*		9,075		2,016,011
				15,783,349
Industrials — 9.4%
Aircastle Ltd.		70,000		1,586,900
Colfax Corp.*		39,490		1,822,464
Hub Group, Inc., Class A*		130,700		5,272,437
				8,681,801
Information Technology — 18.5%
Anixter International, Inc.*		12,680		826,102
Apple Computer, Inc.		4,895		613,955
CommScope Holding, Inc.*		53,867		1,643,482
CSG Systems International, Inc.		32,785		1,037,973
Google, Inc., Class A*		2,506		1,353,340
International Business Machines Corp.		27,322		4,444,196
Juniper Networks, Inc.		62,197		1,615,256
Keysight Technologies, Inc.*		33,250		1,037,068
Linear Technology Corp.		45,376		2,006,980
Microsoft Corp.		55,540		2,452,091
				17,030,443
Total Common Stocks			$	83,834,807
Corporate Bond — 0.5%
Consumer Discretionary — 0.5%
Laureate Education, Inc., 10.00%, 09/01/19	$	450,000		419,625
Total Corporate Bond			$	419,625
Rights —     %
Health Care —     %
BioScrip, Inc., Strike Price $5.17*		374,299		—
Total Rights			$	—

DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2015 | DIAMOND-HILL.COM 17

Diamond Hill Research Opportunities Fund

Schedule of Investments (Continued)

June 30, 2015 (Unaudited)

Diamond Hill Research Opportunities Fund

Schedule of Investments Sold Short

June 30, 2015 (Unaudited)

	Shares		Fair Value
Registered Investment Company — 6.0%
State Street Institutional Liquid Reserves Fund, Premier Class, 0.11%S		5,488,519	$	5,488,519
Total Registered Investment Companies			$	5,488,519
Total Investment Securities — 97.6%
Cost ($80,209,823)**			$	89,742,951
Segregated Cash With Custodian — 21.7%				19,931,435
Securities Sold Short — (17.7)%
(Proceeds $15,046,404)				(16,155,963	)
Net Other Assets (Liabilities) — (1.6)%				(1,541,985	)
Net Assets — 100.0%			$	91,976,438

* Non-income producing security.

^S  Rate represents the daily yield on June 30, 2015.

** Represents cost for financial reporting purposes.

REIT – Real Estate Investment Trust

ADR – American Depositary Receipt

GB – British Security

See accompanying Notes to Financial Statements

	Shares		Fair Value
Common Stocks — 17.7%
Consumer Discretionary — 4.0%
American Eagle Outfitters, Inc.		11,265	$	193,983
Cabela’s, Inc.*		17,770		888,145
Gap, Inc., The		5,085		194,094
Grand Canyon Education, Inc.*		4,003		169,727
Kohl’s Corp.		6,545		409,782
Macy’s, Inc.		27,516		1,856,505
				3,712,236
Financials — 6.2%
BancorpSouth, Inc.		13,960		359,610
Cincinnati Financial Corp.		19,860		996,575
First American Financial Corp.		30,660		1,140,859
Hanover Insurance Group, Inc.		19,215		1,422,486
Mercury General Corp.		11,050		614,933
RenaissanceRe Holdings Ltd.		6,165		625,810
Selective Insurance Group, Inc.		18,035		505,882
				5,666,155
Health Care — 2.2%
Abbvie, Inc.		9,701		651,810
Celgene Corp.*		5,335		617,446
IDEXX Laboratories, Inc.*		5,100		327,114
Intuitive Surgical, Inc.*		963		466,574
				2,062,944
Industrials — 1.0%
Boeing Co., The		6,300		873,936
Information Technology — 2.8%
LogMeIn, Inc.*		22,692		1,463,406
NETGEAR, Inc.*		18,540		556,571
Western Union Co.		25,345		515,264
				2,535,241
Materials — 0.8%
International Paper Co.		14,500		690,055
Telecommunication Services — 0.7%
Level 3 Communications, Inc.*		11,684		615,396
Total Securities Sold Short — 17.7%
(Proceeds $15,046,404)			$	16,155,963

* Non-dividend expense producing security.

Percentages disclosed are based on total net assets of the Fund at June 30, 2015.

See accompanying Notes to Financial Statements

18 DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2015 | DIAMOND-HILL.COM

Diamond Hill Financial Long-Short Fund

Schedule of Investments

June 30, 2015 (Unaudited)

	Shares		Fair Value
Common Stocks — 87.8%
Banks, Thrifts and Mortgage Finance — 31.4%
Bank of Marin Bancorp		7,395	$	376,184
BOK Financial Corp.		9,575		666,229
Bridge Bancorp, Inc.		16,545		441,586
Capital City Bank Group, Inc.		14,045		214,467
Citigroup, Inc.		40,275		2,224,791
First Horizon National Corp.^		26,950		422,307
First of Long Island Corp., The		21,508		596,202
First Republic Bank^		7,555		476,192
National Penn Bancshares, Inc.		35,690		402,583
Nationstar Mortgage Holdings, Inc.*^		57,735		969,947
PNC Financial Services Group, Inc.^		5,999		573,804
Popular, Inc.*		71,075		2,051,224
State Bank Financial Corp.		17,760		385,392
Sterling Bancorp		17,268		253,840
SunTrust Banks, Inc.		11,992		515,896
Wells Fargo & Co.^		3,456		194,365
				10,765,009
Capital Markets — 8.3%
Fortress Investment Group LLC, Class A		201,510		1,471,024
Franklin Resources, Inc.^		27,635		1,354,944
				2,825,968
Consumer Financial Services — 4.0%
Capital One Financial Corp.^		15,645		1,376,290
Diversified Financial Services — 7.1%
BankUnited, Inc.		19,625		705,126
JPMorgan Chase & Co.^		14,675		994,378
Morgan Stanley		19,035		738,368
				2,437,872
Insurance — 29.0%
American International Group, Inc.		19,950		1,233,309
Brown & Brown, Inc.		47,885		1,573,501
Endurance Specialty Holdings Ltd.^		5,285		347,225
Enstar Group Ltd.*		2,850		441,608
Infinity Property & Casualty Corp.		2,205		167,227
Loews Corp.		18,190		700,497
MetLife, Inc.^		28,150		1,576,119
Navigators Group, Inc.*		6,540		507,242

	Shares		Fair Value
Insurance — 29.0% continued
Progressive Corp.^		20,870	$	580,812
Prudential Financial, Inc.^		6,315		552,689
Willis Group Holdings plc		47,970		2,249,791
				9,930,020
IT Services/Other — 3.4%
Vantiv, Inc., Class A*^		30,645		1,170,333
REITs & Real Estate Management — 4.6%
iStar Financial, Inc. REIT*^		119,533		1,592,180
Total Common Stocks			$	30,097,672
Registered Investment Companies — 40.7%
State Street Institutional Liquid Reserves Fund, Premier Class, 0.11%S		4,207,913		4,207,913
State Street Navigator Securities Lending Prime Portfolio, 0.18%†S		9,734,798		9,734,798
Total Registered Investment Companies			$	13,942,711
Total Investment Securities — 128.5%
(Cost $38,872,459)**			$	44,040,383
Segregated Cash With Custodian — 14.1%				4,818,752
Securities Sold Short — (11.3)%
(Proceeds $3,424,554)				(3,883,079	)
Net Other Assets (Liabilities) — (31.3)%				(10,716,463	)
Net Assets — 100.0%			$	34,259,593

* Non-income producing security.

^ All or a portion of the security is on loan. The total fair value of the securities on loan as of June 30, 2015 was $9,534,118.

^†  This security, which was purchased using cash collateral received from securities on loan, represents collateral for securities loaned as of June 30, 2015.

^S  Rate represents the daily yield on June 30, 2015.

** Represents cost for financial reporting purposes.

REIT — Real Estate Investment Trust

See accompanying Notes to Financial Statements

DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2015 | DIAMOND-HILL.COM 19

Diamond Hill Financial Long-Short Fund

Schedule of Investments Sold Short

June 30, 2015 (Unaudited)

Diamond Hill Strategic Income Fund

Schedule of Investments

June 30, 2015 (Unaudited)

	Shares		Fair Value
Common Stocks — 11.3%
Banks, Thrifts and Mortgage Finance — 0.8%
BancorpSouth, Inc.		10,990	$	283,102
Consumer Financial Services — 0.8%
Moody’s Corp.		2,415		260,723
Insurance — 8.6%
Cincinnati Financial Corp.		10,850		544,453
First American Financial Corp.		19,905		740,665
Hanover Insurance Group, Inc.		10,310		763,250
Mercury General Corp.		7,340		408,471
RenaissanceRe Holdings Ltd.		3,465		351,732
Selective Insurance Group, Inc.		5,210		146,141
				2,954,712
IT Services/Other — 1.1%
Western Union Co.		18,915		384,542
Total Securities Sold Short — 11.3%
(Proceeds $3,424,554)			$	3,883,079

Percentages disclosed are based on total net assets of the Fund at June 30, 2015.

See accompanying Notes to Financial Statements

	Shares/ Par Value		Fair Value
Collateralized Debt Obligations — 0.4%
Alesco Preferred Funding Ltd., Class PPNE, 3/23/35*#	$	336,608	$	101,598
Alesco Preferred Funding VI, Class PNN, 3/23/35*#		621,631		196,833
Fort Sheridan ABS CDO Ltd., Class PPN2, 11/5/41*#		611,948		228,367
Taberna Preferred Funding Ltd., Class PPN2, 7/5/35*#		1,175,564		371,772
Total Collateralized Debt Obligations			$	898,570
Corporate Bonds — 86.6%
Consumer Discretionary — 24.1%
Academy Ltd., 9.25%, 8/1/19^††	$	1,875,000		1,970,063
Altice SA, 7.75%, 5/15/22††		4,300,000		4,160,250
Avis Budget Car/Finance, 4.88%, 11/15/17^		5,304,000		5,429,970
Bankrate, Inc., 6.13%, 8/15/18^††		5,445,000		5,281,650
Goodyear Tire & Rubber Co., The, 8.25%, 8/15/20		2,900,000		3,031,950
Goodyear Tire & Rubber Co., The, 8.75%, 8/15/20		1,657,000		1,980,115
Jarden Corp., 6.13%, 11/15/22^		1,614,000		1,670,490
Laureate Education, Inc., 10.00%, 9/1/19^††		4,375,000		4,079,688
Liberty Interactive LLC, 8.25%, 2/1/30		2,620,000		2,751,000
Live Nation Entertainment, 7.00%, 9/1/20††		5,254,000		5,582,374
McGraw-Hill Global Education Holdings LLC, 9.75%, 4/1/21		650,000		715,000
MHGE Parent LLC/Finance, 8.50%, 8/1/19^††		3,550,000		3,576,625
Radio One, Inc., 7.38%, 10/15/22^††		1,900,000		1,862,000
Radio One, Inc., 9.25%, 2/15/20††		3,309,000		3,011,190

20 DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2015 | DIAMOND-HILL.COM

Diamond Hill Strategic Income Fund

Schedule of Investments (Continued)

June 30, 2015 (Unaudited)

	Shares/ Par Value		Fair Value
Corporate Bonds — 86.6% continued
Consumer Discretionary — 24.1% continued
Rent-A-Center, Inc., 4.75%, 5/1/21	$	5,214,000	$	4,536,179
Rivers Pittsburgh Borrower LP/Finance, 9.50%, 6/15/19††		4,716,000		4,957,695
Summit Materials LLC/Finance, 10.50%, 1/31/20		1,869,000		2,034,874
Tenneco, Inc., 6.88%, 12/15/20		4,186,000		4,374,370
				61,005,483
Consumer Staples — 1.3%
Post Holdings, Inc., 7.38%, 2/15/22		3,220,000		3,276,350
Energy — 5.8%
Carrizo Oil & Gas, Inc., 7.50%, 9/15/20^		3,730,000		3,925,825
Cimarex Energy Co., 5.88%, 5/1/22		1,875,000		2,006,250
Diamondback Energy, Inc., 7.63%, 10/1/21		4,796,000		5,131,720
Energen Corp., 7.13%, 2/15/28^		400,000		369,933
McDermott International, Inc., 8.00%, 5/1/21^††		3,514,000		3,162,600
				14,596,328
Financials — 18.4%
CNA Financial Corp., 6.50%, 8/15/16		2,165,000		2,289,762
First Horizon National Corp., 5.38%, 12/15/15		3,000,000		3,045,993
iStar Financial, Inc., 5.00%, 7/1/19		2,160,000		2,130,300
iStar Financial, Inc., 4.88%, 7/1/18^		4,725,000		4,648,218
iStar Financial, Inc., Series B, 9.00%, 6/1/17		1,445,000		1,571,438
MGIC Investment Corp., 5.38%, 11/1/15		2,105,000		2,127,366
Nationstar Mortgage/Capital Corp., 6.50%, 8/1/18		1,050,000		1,050,000
Nationstar Mortgage/Capital Corp., 6.50%, 7/1/21		7,440,000		6,928,500

	Shares/ Par Value		Fair Value
OneMain Finance Holdings, Inc., 7.25%, 12/15/21††	$	4,800,000	$	4,968,000
Popular, Inc., 7.00%, 7/1/19^		7,400,000		7,400,001
Radian Group, Inc., 5.25%, 6/15/20		4,840,000		4,815,800
Synovus Financial Corp., 7.88%, 2/15/19		1,775,000		1,992,438
Synovus Financial Corp., 5.13%, 6/15/17^		3,350,000		3,425,375
				46,393,191
Health Care — 8.7%
Alere, Inc., 6.50%, 6/15/20		4,390,000		4,543,650
BioScrip, Inc., 8.88%, 2/15/21		2,000,000		1,700,000
Endo Finance LLC, 6.00%, 7/15/23††		1,750,000		1,791,563
HealthSouth Corp., 7.75%, 9/15/22		2,472,000		2,583,240
Horizon Pharma Financing, 6.63%, 5/1/23††		2,625,000		2,730,000
Kindred Escrow Corp. II, 8.75%, 1/15/23††		4,800,000		5,213,999
Valeant Pharmaceuticals International, 6.38%, 10/15/20††		3,350,000		3,527,969
				22,090,421
Industrials — 13.7%
American Airlines, Inc., Class B, Series 2013-1, 5.63%, 1/15/21††		2,740,940		2,850,578
BlueLine Rental LLC, 7.00%, 2/1/19††		2,740,000		2,815,350
Casella Waste Systems, Inc., 7.75%, 2/15/19		3,275,000		3,307,750
Optimas OE Solution Holding, 8.63%, 6/1/21††		3,550,000		3,603,250
United Airlines, Inc., Class B, Series 2013-1B, 5.38%, 2/15/23		6,737,865		7,057,913
United Airlines, Inc., Class A, Series 2007-1, 6.64%, 7/2/22		3,729,899		4,000,317

DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2015 | DIAMOND-HILL.COM 21

Diamond Hill Strategic Income Fund

Schedule of Investments (Continued)

June 30, 2015 (Unaudited)

	Shares/ Par Value		Fair Value
Corporate Bonds — 86.6% continued
Industrials — 13.7% continued
United Rentals North America, 7.38%, 5/15/20	$	6,333,000	$	6,757,248
Vander Intermediate Holding, 9.75%, 2/1/19††		1,595,000		1,571,075
XPO Logistics, Inc., 6.50%, 6/15/22††		2,700,000		2,642,625
				34,606,106
Information Technology — 1.2%
Activision Blizzard, Inc., 5.63%, 9/15/21††		2,000,000		2,095,000
SS&C Technologies Holdings, Inc., 5.88%, 7/15/23††		850,000		858,500
				2,953,500
Materials — 8.6%
Cemex Finance LLC, 9.38%, 10/12/22††		4,635,000		5,162,231
FMG Resources (August 2006), 9.75%, 3/1/22††		1,850,000		1,910,125
Mobile Mini, Inc., 7.88%, 12/1/20		2,105,000		2,204,988
NCI Building Systems, Inc., 8.25%, 1/15/23††		2,500,000		2,662,500
Owens-Illinois, Inc., 7.80%, 5/15/18^		6,321,000		7,063,717
Platform Specialty Products, 6.50%, 2/1/22††		2,425,000		2,503,813
Summit Materials LLC/Finance, 6.13%, 7/15/23††		250,000		250,000
				21,757,374
Telecommunication Services — 3.1%
Cincinnati Bell, Inc., 8.38%, 10/15/20		2,220,000		2,333,775
Cogent Communications Finance, Inc., 5.63%, 4/15/21††		5,750,000		5,462,500
				7,796,275

	Shares/ Par Value		Fair Value
Utilities — 1.7%
Source Gas LLC, 5.90%, 4/1/17††	$	4,000,000	$	4,238,972
Total Corporate Bonds			$	218,714,000
Registered Investment Companies — 20.2%
State Street Institutional Liquid Reserves Fund, Premier Class, 0.11%S		32,210,073		32,210,073
State Street Navigator Securities Lending Prime Portfolio, 0.18%†S		18,711,068		18,711,068
Total Registered Investment Companies			$	50,921,141
Total Investment Securities 107.2%
(Cost $272,837,386)**			$	270,533,711
Net Other Assets (Liabilities) (7.2)%				(18,188,513	)
Net Assets — 100.0%			$	252,345,198

* Non-income producing security.

** Represents cost for financial reporting purposes.

^††  Restricted securities not registered under the Securities Act of 1933 are as follows:

	Acquisition Date		Current Cost		Fair Value		Value as a % of Net Assets
Academy Ltd.		September-14	$	2,001,563	$	1,970,063		0.8%
Activision Blizzard, Inc.		August-14		2,100,000		2,095,000		0.8%
Altice SA		May-15		4,302,750		4,160,250		1.6%
American Airlines, Inc., Series 2013-1, Class B		October-14		2,802,611		2,850,578		1.1%
Bankrate, Inc.		September-14		5,318,125		5,281,650		2.1%
BlueLine Rental LLC		July-14		2,808,100		2,815,350		1.1%
Cemex Finance LLC		September-14		5,183,931		5,162,231		2.0%
Cogent Communications Finance, Inc.		April-14		5,716,250		5,462,500		2.2%
Endo Finance LLC		June-15		1,750,000		1,791,563		0.7%
FMG Resources (August 2006)		April-15		1,863,875		1,910,125		0.8%
Horizon Pharma Financing		April-15		2,684,750		2,730,000		1.1%
Kindred Escrow Corp. II		December-14		4,823,999		5,213,999		2.1%

22 DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2015 | DIAMOND-HILL.COM

Diamond Hill Strategic Income Fund

Schedule of Investments (Continued)

June 30, 2015 (Unaudited)

	Acquisition Date		Current Cost		Fair Value		Value as a % of Net Assets
Laureate Education, Inc.		August-14	$	4,336,013	$	4,079,688		1.6%
Live Nation Entertainment		February-14		5,760,945		5,582,374		2.2%
McDermott International, Inc.		July-14		3,541,114		3,162,600		1.3%
MHGE Parent LLC/Finance		July-14		3,489,955		3,576,625		1.4%
NCI Building Systems, Inc.		January-15		2,556,250		2,662,500		1.1%
OneMain Finance Holdings, Inc.		March-15		5,010,000		4,968,000		2.0%
Optimas OE Solution Holding		April-15		3,580,000		3,603,250		1.4%
Platform Specialty Products		February-15		2,447,875		2,503,813		1.0%
Radio One, Inc.		July-14		5,460,095		4,873,190		1.9%
Rivers Pittsburgh Borrower LP/Finance		November-14		5,041,530		4,957,695		2.0%
Source Gas LLC		March-10		3,840,000		4,238,972		1.7%
SS&C Technologies Holdings, Inc.		June-15		850,000		858,500		0.3%
Summit Materials LLC/Finance		June15		250,000		250,000		0.1%
Valeant Pharmaceuticals International		April-14		3,634,750		3,527,969		1.4%
Vander Intermediate Holding		February-15		1,602,550		1,571,075		0.6%
XPO Logistics, Inc.		June-15		2,646,000		2,642,625		1.0%
			$	95,403,031	$	94,502,185		37.4%

^#  Restricted and illiquid securities not registered under the Securities Act of 1933 and valued at fair value by the Fair Value Committee based on procedures approved by the Board of Trustees are as follows:

	Acquisition Date		Current Cost		Fair Value		Value as a % of Net Assets
Alesco Preferred Funding Ltd., Series 6A, Class PPNE		March-05	$	336,608	$	101,598		0.0%
Alesco Preferred Funding VI, Class PNN		December-04		621,631		196,833		0.1%
Fort Sheridan ABS CDO Ltd., Series 2005-1A, Class PPN2		March-05		509,448		228,367		0.1%
Taberna Preferred Funding Ltd., Series 2005-1A, Class PPN2		March-05		1,035,359		371,772		0.2%
			$	2,503,046	$	898,570		0.4%

^ All or a portion of the security is on loan. The total fair value of the securities on loan as of June 30, 2015 was $17,789,724.

^†  This security, which was purchased using cash collateral received from securities on loan, represents collateral for securities loaned as of June 30, 2015.

^S  Rate represents the daily yield on June 30, 2015.

See accompanying Notes to Financial Statements

DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2015 | DIAMOND-HILL.COM 23

Diamond Hill Funds

Tabular Presentation of Schedules of Investments

June 30, 2015 (Unaudited)

Diamond Hill Small Cap Fund
Sector Allocation	% of Net Assets
Financials		28.2%
Industrials		14.3%
Consumer Discretionary		10.1%
Health Care		8.5%
Information Technology		6.6%
Energy		5.2%
Consumer Staples		4.9%
Utilities		3.1%
Cash and Cash Equivalents		28.7%
Other
Net Other Assets (Liabilities)		-9.6%
		100%
Russell 2000 Index Sector Allocation	% of Index
Financials		24.3%
Industrials		13.7%
Consumer Discretionary		14.2%
Health Care		16.1%
Information Technology		16.7%
Energy		3.1%
Consumer Staples		3.1%
Utilities		3.4%
Materials		4.4%
Telecom		1.0%
Other		0.1%
Net Other Assets (Liabilities)		-0.1%
		100%

Diamond Hill Small-Mid Cap Fund
Sector Allocation	% of Net Assets
Financials		27.7%
Consumer Discretionary		14.0%
Health Care		11.3%
Industrials		11.2%
Consumer Staples		10.6%
Information Technology		8.6%
Energy		5.3%
Utilities		3.0%
Cash and Cash Equivalents		22.6%
Other
Net Other Assets (Liabilities)		-14.3%
		100%
Russell 2500 Index Sector Allocation	% of Index
Financials		23.9%
Consumer Discretionary		14.4%
Health Care		13.0%
Industrials		15.7%
Consumer Staples		3.0%
Information Technology		14.7%
Energy		3.9%
Utilities		4.2%
Materials		6.3%
Telecom		0.8%
Other
Net Other Assets (Assets)		0.1%
		100%

24 DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2015 | DIAMOND-HILL.COM

Diamond Hill Funds

Tabular Presentation of Schedules of Investments (Continued)

June 30, 2015 (Unaudited)

Diamond Hill Mid Cap Fund
Sector Allocation	% of Net Assets
Financials		28.3%
Consumer Discretionary		15.5%
Consumer Staples		11.8%
Industrials		9.9%
Health Care		9.6%
Information Technology		8.0%
Energy		5.7%
Utilities		3.1%
Materials		1.2%
Cash and Cash Equivalents		36.1%
Other
Net Other Assets (Liabilities)		-29.2%
		100%
Russell Midcap Index Sector Allocation	% of Index
Financials		21.2%
Consumer Discretionary		16.3%
Consumer Staples		5.6%
Industrials		12.9%
Health Care		10.5%
Information Technology		14.7%
Energy		5.5%
Utilities		5.8%
Materials		6.2%
Telecom		1.5%
Other
Net Other Assets (Liabilities)		-0.2%
		100%

Diamond Hill Large Cap Fund
Sector Allocation	% of Net Assets
Financials		27.0%
Health Care		16.5%
Consumer Discretionary		15.8%
Information Technology		13.6%
Consumer Staples		9.4%
Industrials		8.9%
Energy		5.7%
Materials		2.4%
Cash and Cash Equivalents		2.9%
Other
Net Other Assets (Liabilities)		-2.2%
		100%
Russell 1000 Index Sector Allocation	% of Index
Financials		17.2%
Health Care		15.1%
Consumer Discretionary		13.7%
Information Technology		19.1%
Consumer Staples		8.1%
Industrials		10.8%
Energy		7.4%
Materials		3.5%
Utilities		2.9%
Telecom		2.3%
Other
Net Other Assets (Liabilities)		-0.1%
		100%

DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2015 | DIAMOND-HILL.COM 25

Diamond Hill Funds

Tabular Presentation of Schedules of Investments (Continued)

June 30, 2015 (Unaudited)

Diamond Hill Select Fund
Sector Allocation	% of Net Assets
Financials		30.2%
Consumer Discretionary		17.6%
Information Technology		15.3%
Industrials		12.3%
Health Care		11.7%
Consumer Staples		6.0%
Energy		2.6%
Cash and Cash Equivalents		32.9%
Other
Net Other Assets (Liabilities)		-28.6%
		100%
Russell 3000 Index Sector Allocation	% of Index
Financials		17.8%
Consumer Discretionary		13.7%
Information Technology		18.9%
Industrials		11.0%
Health Care		15.1%
Consumer Staples		7.7%
Energy		7.1%
Materials		3.6%
Utilities		3.0%
Telecom		2.2%
Other
Net Other Assets (Liabilities)		-0.1%
		100%

Diamond Hill Long-Short Fund
Long Portfolio Sector Allocation	% of Net Assets
Financials		25.4%
Consumer Discretionary		16.1%
Information Technology		12.4%
Health Care		9.5%
Industrials		7.1%
Energy		5.4%
Consumer Staples		4.9%
Cash and Cash Equivalents		34.0%
Short Portfolio Sector Allocation	% of Net Assets
Energy		-0.5%
Materials		-0.5%
Telecommunication Services		-1.1%
Information Technology		-1.4%
Health Care		-2.4%
Industrials		-2.5%
Consumer Staples		-2.7%
Financials		-5.2%
Consumer Discretionary		-7.3%
Other
Segregated Cash With Brokers		29.2%
Net Other Assets (Liabilities)		-20.4%
		100%
Russell 1000 Index Sector Allocation	% of Index
Financials		17.2%
Consumer Discretionary		13.7%
Information Technology		19.1%
Health Care		15.1%
Industrials		10.8%
Energy		7.4%
Consumer Staples		8.1%
Telecom		2.3%
Materials		3.5%
Utilities		2.9%
Other
Net Other Assets (Liabilities)		-0.1%
		100%

26 DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2015 | DIAMOND-HILL.COM

Diamond Hill Funds

Tabular Presentation of Schedules of Investments (Continued)

June 30, 2015 (Unaudited)

Diamond Hill Financial Long-Short Fund
Long Portfolio Sector Allocation	% of Net Assets
Banks, Thrifts and Mortgage Finance		31.4%
Insurance		29.0%
Capital Markets		8.3%
Diversified Financial Services		7.1%
REITs & Real Estate Management		4.6%
Consumer Financial Services		4.0%
IT Services/Other		3.4%
Cash and Cash Equivalents		40.7%
Short Portfolio Sector Allocation	% of Net Assets
Consumer Financial Services		-0.8%
Banks, Thrifts and Mortgage Finance		-0.8%
IT Services		-1.1%
Insurance		-8.6%
Other
Segregated Cash With Brokers		14.1%
Net Other Assets (Liabilities)		-31.3%
		100%
Russell 3000 Financials Index Sector Allocation	% of Index
Banks, Thrifts and Mortgage Finance		29.2%
Insurance		15.2%
Capital Markets		7.7%
Diversified Financial Services		15.2%
REITs & Real Estate Management		18.5%
Consumer Financial Services		4.0%
IT Services/Other		10.3%
Other
Net Other Assets (Liabilities)		-0.1%
		100%

Diamond Hill Research Opportunities Fund
Long Portfolio Sector Allocation	% of Net Assets
Financials		20.6%
Information Technology		18.5%
Health Care		17.2%
Consumer Discretionary		16.1%
Industrials		9.4%
Consumer Staples		7.0%
Energy		2.8%
Cash and Cash Equivalents		6.0%
Short Portfolio Sector Allocation	% of Net Assets
Telecommunication Services		-0.7%
Materials		-0.8%
Industrials		-1.0%
Health Care		-2.2%
Information Technology		-2.8%
Consumer Discretionary		-4.0%
Financials		-6.2%
Other
Segregated Cash With Brokers		21.7%
Net Other Assets (Liabilities)		-1.6%
		100%
Russell 3000 Index Sector Allocation	% of Index
Financials		17.8%
Information Technology		18.9%
Health Care		15.1%
Consumer Discretionary		13.7%
Industrials		11.0%
Consumer Staples		7.7%
Energy		7.1%
Materials		3.6%
Telecom		2.2%
Utilities		3.0%
Other
Net Other Assets (Liabilities)		-0.1%
		100%

DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2015 | DIAMOND-HILL.COM 27

Diamond Hill Funds

Tabular Presentation of Schedules of Investments (Continued)

June 30, 2015 (Unaudited)

Diamond Hill Strategic Income Fund
Sector Allocation	% of Net Assets
Consumer Discretionary		24.1%
Financials		18.4%
Industrials		13.7%
Health Care		8.7%
Materials		8.6%
Energy		5.8%
Telecommunication Services		3.1%
Utilities		1.7%
Consumer Staples		1.3%
Information Technology		1.2%
Other		0.4%
Cash and Cash Equivalents		20.2%
Other
Net Other Assets (Liabilities)		-7.2%
		100%

28 DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2015 | DIAMOND-HILL.COM

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DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2015 | DIAMOND-HILL.COM 29

Diamond Hill Funds

Statements of Assets & Liabilities

June 30, 2015 (Unaudited)

	Small Cap Fund			Small-Mid Cap Fund
Assets
Total investment securities, at cost	$	1,381,285,956		$	1,060,775,006
Investment securities, at fair value — including $150,498,265, $126,613,501, $5,060,088, $66,635,303, $36,208,586, $851,581,677, $—, $9,534,118 and $17,789,724 of securities loaned	$	1,744,668,252		$	1,168,678,097
Cash		—			9,072
Foreign Currency		—			—
Cash deposits with custodian for securities sold short		—			—
Receivable for fund shares issued		2,067,311			17,329,581
Receivable for dividends and interest		1,631,706			1,443,421
Receivable for investments sold		459,212			183,829
Prepaid expenses and other assets		363			1,071
Total Assets		1,748,826,844			1,187,645,071
Liabilities
Securities sold short, at fair value (proceeds $—, $—, $—, $—, $—, $799,353,431, $15,046,404, $3,424,554 and $– )		—			—
Cash overdraft		—			—
Payable for securities purchased		—			32,515,152
Payable for expenses and fees on securities sold short		—			—
Payable for fund shares redeemed		1,053,894			472,105
Payable for return of collateral received		154,208,481			131,012,351
Payable to Investment Adviser		1,059,304			622,349
Payable to Administrator		298,280			146,346
Accrued distribution and service fees		165,332			45,429
Total Liabilities		156,785,291			164,813,732
Net Assets	$	1,592,041,553		$	1,022,831,339
Components of Net Assets
Paid-in capital	$	1,211,276,817		$	904,928,399
Accumulated net investment income (loss)		(3,225,373	)		655,196
Accumulated net realized gains (losses) from investment transactions		20,607,813			9,344,653
Net unrealized appreciation (depreciation) on investments		363,382,296			107,903,091
Net Assets	$	1,592,041,553		$	1,022,831,339
Net Assets
Class A Shares	$	556,323,395		$	110,996,362
Class C Shares	$	58,980,412		$	26,999,033
Class I Shares	$	786,670,211		$	417,611,854
Class Y Shares	$	190,067,535		$	467,224,090
Shares of beneficial interest outstanding (unlimited number of shares authorized, no par value)
Class A Shares		16,633,558			5,760,171
Class C Shares		1,975,262			1,497,665
Class I Shares		23,185,241			21,474,385
Class Y Shares		5,597,273			23,990,254
Net Asset Value, offering (except Class A Shares) and redemption price per share:
Class A Shares	$	33.45		$	19.27
Class C Shares(A)	$	29.86		$	18.03
Class I Shares	$	33.93		$	19.45
Class Y Shares	$	33.96		$	19.48
Maximum Offering Price
Maximum sales charge — Class A Shares		5.00%			5.00%
(100%/(100%-maximum sales charge) of net asset value adjusted to the nearest cent) per share — Class A Shares	$	35.21		$	20.28

^(A)  Redemption price per share varies based on the holding period.

See accompanying Notes to Financial Statements.

30 DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2015 | DIAMOND-HILL.COM

Mid Cap Fund			Large Cap Fund		Select Fund		Long-Short Fund			Research Opportunities Fund			Financial Long-Short Fund			Strategic Income Fund
$	21,892,079		$	2,667,172,148	$	156,438,811	$	3,988,731,171		$	80,209,823		$	38,872,459		$	272,837,386
$	23,458,570		$	3,479,723,245	$	166,888,583	$	4,848,971,930		$	89,742,951		$	44,040,383		$	270,533,711
	857			—		—		—			—			—			—
	—			—		—		—			11,020			—			—
	—			—		—		1,236,344,269			19,931,435			4,818,752			—
	—			3,655,314		803,953		13,925,115			117,750			15,975			202,505
	30,926			4,180,274		116,201		3,331,368			99,869			25,531			4,248,316
	—			4,736,760		744,163		—			315,291			—			2,161,400
	12			466		98		—			518			140			—
	23,490,365			3,492,296,059		168,552,998		6,102,572,682			110,218,834			48,900,781			277,145,932
	—			—		—		994,945,213			16,155,963			3,883,079			—
	—			—		—		—			—			—			484
	135,745			9,955,594		2,024,132		4,229,033			1,987,164			859,334			5,496,000
	—			—		—		644,140			5,652			2,785			—
	866			2,269,786		11,857		2,849,494			1,603			123,696			425,445
	5,190,246			71,748,039		36,603,983		868,030,675			—			9,734,798			18,711,068
	9,808			1,566,566		71,099		3,143,599			71,276			26,898			92,751
	2,158			633,040		23,082		824,314			15,048			6,455			47,502
	570			318,223		14,095		289,883			5,690			4,143			27,484
	5,339,393			86,491,248		38,748,248		1,874,956,351			18,242,396			14,641,188			24,800,734
$	18,150,972		$	3,405,804,811	$	129,804,750	$	4,227,616,331		$	91,976,438		$	34,259,593		$	252,345,198
$	16,548,159		$	2,445,505,705	$	114,797,763	$	3,604,345,885		$	79,305,862		$	37,965,030		$	264,743,172
	60,264			17,525,981		377,520		(5,196,489	)		(371,325	)		(53,879	)		864,938
	(23,942	)		130,222,028		4,179,695		(36,182,042	)		4,619,052			(8,360,957	)		(10,959,237	)
	1,566,491			812,551,097		10,449,772		664,648,977			8,422,849			4,709,399			(2,303,675	)
$	18,150,972		$	3,405,804,811	$	129,804,750	$	4,227,616,331		$	91,976,438		$	34,259,593		$	252,345,198
$	2,664,756		$	1,178,280,959	$	30,731,638	$	675,550,593		$	14,799,799		$	11,349,290		$	33,531,983
$	36,110		$	84,653,337	$	11,187,462	$	180,072,171		$	5,933,469		$	2,211,139		$	24,464,914
$	2,886,973		$	1,713,959,959	$	76,836,863	$	3,052,516,324		$	53,608,833		$	20,699,164		$	176,173,566
$	12,563,133		$	428,910,556	$	11,048,787	$	319,477,243		$	17,634,337		$	—		$	18,174,735
	238,403			50,975,261		2,219,956		28,081,093			634,979			575,127			3,025,807
	3,249			3,835,216		838,511		8,160,303			261,560			120,783			2,212,660
	257,524			73,679,107		5,546,085		124,919,498			2,288,153			1,049,530			15,941,700
	1,118,650			18,420,562		796,772		13,045,605			751,141			—			1,644,928
$	11.18		$	23.11	$	13.84	$	24.06		$	23.31		$	19.73		$	11.08
$	11.11		$	22.07	$	13.34	$	22.07		$	22.68		$	18.31		$	11.06
$	11.21		$	23.26	$	13.85	$	24.44		$	23.43		$	19.72		$	11.05
$	11.23		$	23.28	$	13.87	$	24.49		$	23.48		$	—		$	11.05
	5.00%			5.00%		5.00%		5.00%			5.00%			5.00%			3.50%
$	11.77		$	24.33	$	14.57	$	25.33		$	24.54		$	20.77		$	11.48

DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2015 | DIAMOND-HILL.COM 31

Diamond Hill Funds

Statements of Operations

For the period ended June 30, 2015 (Unaudited)

	Small Cap Fund		Small-Mid Cap Fund		Mid Cap Fund		Large Cap Fund
Investment Income
Dividends	$	9,219,952	$	5,715,314	$	127,176	$	32,387,119
Securities lending income		168,959		162,679		4,695		40,405
Total Investment Income		9,388,911		5,877,993		131,871		32,427,524
Expenses
Investment advisory fees		6,055,431		3,295,455		56,205		9,233,054
Administration fees		1,712,841		775,628		12,316		3,737,904
Distribution fees — Class A		713,167		131,319		2,938		1,510,156
Distribution and service fees — Class C		276,929		131,104		148		420,429
Total Expenses		8,758,368		4,333,506		71,607		14,901,543
Net Investment Income (Loss)		630,543		1,544,487		60,264		17,525,981
Realized and Unrealized Gains (Losses) on Investments
Net realized gains (losses) on security sales		17,352,643		7,429,491		38,778		93,274,455
Net change in unrealized appreciation (depreciation) on investments		20,231,715		33,676,083		669,730		(47,238,762	)
Net Realized and Unrealized Gains (Losses) on Investments		37,584,358		41,105,574		708,508		46,035,693
Change in Net Assets from Operations	$	38,214,901	$	42,650,061	$	768,772	$	63,561,674

See accompanying Notes to Financial Statements.

32 DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2015 | DIAMOND-HILL.COM

Diamond Hill Funds

Statements of Operations

For the period ended June 30, 2015 (Unaudited)

	Select Fund			Long-Short Fund			Research Opportunities Fund			Financial Long-Short Fund			Strategic Income Fund
Investment Income
Dividends	$	465,528		$	27,632,870		$	584,957		$	256,015		$	7,512
Interest		—			—			6,512			—			7,115,595
Securities lending income		14,867			55,034			27,811			9,682			30,087
Foreign taxes withheld		—			—			9,157			—			—
Total Investment Income		480,395			27,687,904			628,437			265,697			7,153,194
Expenses
Investment advisory fees		287,760			18,164,369			400,547			147,483			550,952
Administration fees		91,630			4,633,493			84,006			35,396			272,443
Distribution fees — Class A		19,462			872,529			13,146			13,882			40,648
Distribution and service fees — Class C		45,886			864,067			7,620			11,134			122,665
Expenses and fees on securities sold short		—			8,349,935			106,624			39,484			—
Total Expenses		444,738			32,884,393			611,943			247,379			986,708
Net Investment Income (Loss)		35,657			(5,196,489	)		16,494			18,318			6,166,486
Realized and Unrealized Gains (Losses) on Investments
Net realized gains (losses) on security sales		3,857,105			84,094,792			3,649,213			795,488			515,201
Net realized gains (losses) on foreign currency transactions		—			—			(1,739	)		—			—
Net change in unrealized appreciation (depreciation) on investments and foreign currency translations		(645,477	)		(44,991,478	)		(1,065,400	)		(706,811	)		2,000,755
Net Realized and Unrealized Gains (Losses) on Investments		3,211,628			39,103,314			2,582,074			88,677			2,515,956
Change in Net Assets from Operations	$	3,247,285		$	33,906,825		$	2,598,568		$	106,995		$	8,682,442

See accompanying Notes to Financial Statements.

DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2015 | DIAMOND-HILL.COM 33

Diamond Hill Funds

Statements of Changes in Net Assets

	Small Cap Fund						Small-Mid Cap Fund
	For the six months ended June 30, 2015 (Unaudited)			For the year ended December 31, 2014			For the six months ended June 30, 2015 (Unaudited)		For the year ended December 31, 2014
From Operations
Net investment income (loss)	$	630,543		$	(2,686,741	)	$	1,544,487	$	1,958,741
Net realized gains (losses) on security sales		17,352,643			72,678,332			7,429,491		21,328,991
Net change in unrealized appreciation (depreciation) on investments		20,231,715			(7,550,813	)		33,676,083		10,996,880
Change in Net Assets from Operations		38,214,901			62,440,778			42,650,061		34,284,612
Distributions to Shareholders
From net investment income:
Class A		—			—			—		(97,842	)
Class I		—			(1,087,598	)		—		(861,350	)
Class Y		—			(465,795	)		—		(1,324,401	)
From net realized gains on investments
Class A		—			(26,760,113	)		—		(3,421,995	)
Class C		—			(2,606,415	)		—		(894,081	)
Class I		—			(29,780,665	)		—		(8,318,543	)
Class Y		—			(7,193,312	)		—		(9,418,635	)
Change in Net Assets from Distributions to Shareholders		—			(67,893,898	)		—		(24,336,847	)
Change in Net Assets from Capital Transactions		113,227,504			176,539,958			288,446,903		346,044,639
Total Change in Net Assets		151,442,405			171,086,838			331,096,964		355,992,404
Net Assets:
Beginning of period		1,440,599,148			1,269,512,310			691,734,375		335,741,971
End of period	$	1,592,041,553		$	1,440,599,148		$	1,022,831,339	$	691,734,375
Accumulated Net Investment Income (Loss)	$	(3,225,373	)	$	(3,855,916	)	$	655,196	$	(889,291	)

See accompanying Notes to Financial Statements.

34 DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2015 | DIAMOND-HILL.COM

Diamond Hill Funds

Statements of Changes in Net Assets

	Small Cap Fund						Small-Mid Cap Fund
	For the six months ended June 30, 2015 (Unaudited)			For the year ended December 31, 2014			For the six months ended June 30, 2015 (Unaudited)			For the year ended December 31, 2014
Capital Transactions:
Class A
Proceeds from shares sold	$	84,658,044		$	163,951,547		$	17,893,091		$	71,580,018
Reinvested distributions		—			23,997,393			—			3,383,422
Payments for shares redeemed		(115,265,487	)		(186,573,027	)		(12,890,594	)		(37,038,128	)
Change in Net Assets from Class A Share Transactions		(30,607,443	)		1,375,913			5,002,497			37,925,312
Class C
Proceeds from shares sold		10,328,891			10,082,105			2,850,914			7,165,730
Reinvested distributions		—			2,388,761			—			739,233
Payments for shares redeemed		(4,311,181	)		(6,363,572	)		(2,336,644	)		(2,352,304	)
Change in Net Assets from Class C Share Transactions		6,017,710			6,107,294			514,270			5,552,659
Class I
Proceeds from shares sold		207,708,033			263,463,371			170,899,860			136,631,482
Reinvested distributions		—			26,397,666			—			8,527,522
Payments for shares redeemed		(99,840,714	)		(177,960,023	)		(34,754,630	)		(34,258,641	)
Change in Net Assets from Class I Share Transactions		107,867,319			111,901,014			136,145,230			110,900,363
Class Y
Proceeds from shares sold		69,036,079			82,950,293			170,918,505			219,529,521
Reinvested distributions		—			6,213,790			—			9,863,029
Payments for shares redeemed		(39,086,161	)		(32,008,346	)		(24,133,599	)		(37,726,245	)
Change in Net Assets from Class Y Share Transactions		29,949,918			57,155,737			146,784,906			191,666,305
Change in net assets from capital transactions:	$	113,227,504		$	176,539,958		$	288,446,903		$	346,044,639
Share Transactions:
Class A
Issued		2,558,541			4,876,928			937,373			3,892,262
Reinvested		—			755,348			—			188,753
Redeemed		(3,461,952	)		(5,553,515	)		(678,474	)		(2,051,184	)
Change in shares outstanding		(903,411	)		78,761			258,899			2,029,831
Class C
Issued		347,747			332,880			159,296			419,573
Reinvested		—			83,875			—			43,976
Redeemed		(144,724	)		(209,462	)		(130,406	)		(136,691	)
Change in shares outstanding		203,023			207,293			28,890			326,858
Class I
Issued		6,181,507			7,744,583			8,966,178			7,414,344
Reinvested		—			817,909			—			470,118
Redeemed		(2,945,151	)		(5,257,355	)		(1,828,179	)		(1,883,825	)
Change in shares outstanding		3,236,356			3,305,137			7,137,999			6,000,637
Class Y
Issued		2,018,520			2,461,689			8,969,616			11,832,417
Reinvested		—			192,089			—			542,196
Redeemed		(1,191,887	)		(936,054	)		(1,251,201	)		(2,036,793	)
Change in shares outstanding		826,633			1,717,724			7,718,415			10,337,820
Change in shares		3,362,601			5,308,915			15,144,203			18,695,146

See accompanying Notes to Financial Statements.

DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2015 | DIAMOND-HILL.COM 35

Diamond Hill Funds

Statements of Changes in Net Assets

	Mid Cap Fund					Large Cap Fund
	For the six months ended June 30, 2015 (Unaudited)		For the year ended December 31, 2014(A)			For the six months ended June 30, 2015 (Unaudited)			For the year ended December 31, 2014
From Operations
Net investment income (loss)	$	60,264	$	106,245		$	17,525,981		$	31,966,574
Net realized gains (losses) on security sales		38,778		(62,720	)		93,274,455			125,582,411
Net change in unrealized appreciation (depreciation) on investments		669,730		896,761			(47,238,762	)		142,741,561
Change in Net Assets from Operations		768,772		940,286			63,561,674			300,290,546
Distributions to Shareholders
From net investment income:
Class A		—		(11,479	)		—			(9,908,459	)
Class C		—		—			—			(256,868	)
Class I		—		(18,216	)		—			(16,863,005	)
Class Y		—		(77,180	)		—			(4,953,319	)
From net realized gains on investments
Class A		—		—			—			(32,207,367	)
Class C		—		—			—			(2,991,271	)
Class I		—		—			—			(55,020,203	)
Class Y		—		—			—			(14,152,581	)
Change in Net Assets from Distributions to Shareholders		—		(106,875	)		—			(136,353,073	)
Change in Net Assets from Capital Transactions		1,078,750		15,470,039			95,798,641			552,427,211
Total Change in Net Assets		1,847,522		16,303,450			159,360,315			716,364,684
Net Assets:
Beginning of period		16,303,450		—			3,246,444,496			2,530,079,812
End of period	$	18,150,972	$	16,303,450		$	3,405,804,811		$	3,246,444,496
Accumulated Net Investment Income (Loss)	$	60,264	$	—		$	17,525,981		$	—

See accompanying Notes to Financial Statements.

36 DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2015 | DIAMOND-HILL.COM

Diamond Hill Funds

Statements of Changes in Net Assets

	Mid Cap Fund						Large Cap Fund
	For the six months ended June 30, 2015 (Unaudited)			For the year ended December 31, 2014(A)			For the six months ended June 30, 2015 (Unaudited)				For the year ended December 31, 2014
Capital Transactions:
Class A
Proceeds from shares sold	$	526,600		$	2,230,864		$	163,906,828			$	675,618,011
Reinvested distributions		—			11,479			—				41,200,721
Payments for shares redeemed		(78,122	)		(76,052	)		(189,604,059	)			(476,582,111	)
Change in Net Assets from Class A Share Transactions		448,478			2,166,291			(25,697,231	)			240,236,621
Class C
Proceeds from shares sold		13,656			110,000			7,989,834				32,282,101
Reinvested distributions		—			—			—				3,020,461
Payments for shares redeemed		—			—			(8,324,982	)	��		(8,349,968	)
Change in Net Assets from Class C Share Transactions		13,656			110,000			(335,148	)			26,952,594
Class I
Proceeds from shares sold		194,698			2,839,158			244,387,109				561,769,061
Reinvested distributions		—			18,216			—				65,076,964
Payments for shares redeemed		(178,301	)		(54,192	)		(169,117,668	)			(395,308,230	)
Change in Net Assets from Class I Share Transactions		16,397			2,803,182			75,269,441				231,537,795
Class Y
Proceeds from shares sold		600,686			10,386,365			77,253,894				185,192,312
Reinvested distributions		—			4,703			—				18,359,189
Payments for shares redeemed		(467	)		(502	)		(30,692,315	)			(149,851,300	)
Change in Net Assets from Class Y Share Transactions		600,219			10,390,566			46,561,579				53,700,201
Change in net assets from capital transactions:	$	1,078,750		$	15,470,039		$	95,798,641			$	552,427,211
Share Transactions:
Class A
Issued		47,459			204,372			7,196,693				30,236,017
Reinvested		—			1,064			—				1,832,879
Redeemed		(7,190	)		(7,302	)		(8,266,926	)			(20,922,183	)
Change in shares outstanding		40,269			198,134			(1,070,233	)			11,146,713
Class C
Issued		1,228			2,021			365,257				1,523,376
Reinvested		—			—			—				141,460
Redeemed		—			—			(378,457	)			(391,306	)
Change in shares outstanding		1,228			2,021			(13,200	)			1,273,530
Class I
Issued		17,701			259,503			10,618,406				25,069,556
Reinvested		—			1,685			—				2,876,815
Redeemed		(16,148	)		(5,217	)		(7,318,191	)			(17,585,207	)
Change in shares outstanding		1,553			255,971			3,300,215				10,361,164
Class Y
Issued		54,428			1,063,879			3,370,816				8,197,893
Reinvested		—			434			—				810,343
Redeemed		(42	)		(49	)		(1,315,245	)			(6,653,800	)
Change in shares outstanding		54,386			1,064,264			2,055,571				2,354,436
Change in shares		97,436			1,520,390			4,272,353				25,135,843

^(A)  Inception date of the Fund is December 31, 2013. Fund commenced public offering and investment operations on January 2, 2014.

See accompanying Notes to Financial Statements.

DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2015 | DIAMOND-HILL.COM 37

Diamond Hill Funds

Statements of Changes in Net Assets

	Select Fund						Long-Short Fund
	For the six months ended June 30, 2015 (Unaudited)			For the year ended December 31, 2014			For the six months ended June 30, 2015 (Unaudited)			For the year ended December 31, 2014
From Operations
Net investment income (loss)	$	35,657		$	358,129		$	(5,196,489	)	$	(6,184,693	)
Net realized gains (losses) on security sales		3,857,105			13,569,740			84,094,792			228,188,910
Net realized gains (losses) on closed short positions		—			—			—			(23,364,376	)
Net change in unrealized appreciation (depreciation) on investments		(645,477	)		(5,538,997	)		(44,991,478	)		42,862,088
Change in Net Assets from Operations		3,247,285			8,388,872			33,906,825			241,501,929
Distributions to Shareholders
From net investment income:
Class A		—			(54,815	)		—			—
Class I		—			(165,932	)		—			—
Class Y		—			(67,401	)		—			—
From net realized gains on investments
Class A		—			(1,293,630	)		—			—
Class C		—			(839,134	)		—			—
Class I		—			(4,414,099	)		—			—
Class Y		—			(848,338	)		—			—
Change in Net Assets from Distributions to Shareholders		—			(7,683,349	)		—			—
Change in Net Assets from Capital Transactions		64,584,496			(6,490,816	)		221,594,405			714,224,685
Total Change in Net Assets		67,831,781			(5,785,293	)		255,501,230			955,726,614
Net Assets:
Beginning of period		61,972,969			67,758,262			3,972,115,101			3,016,388,487
End of period	$	129,804,750		$	61,972,969		$	4,227,616,331		$	3,972,115,101
Accumulated Net Investment Income (Loss)	$	377,520		$	341,863		$	(5,196,489	)	$	—

See accompanying Notes to Financial Statements.

38 DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2015 | DIAMOND-HILL.COM

Diamond Hill Funds

Statements of Changes in Net Assets

	Select Fund						Long-Short Fund
	For the six months ended June 30, 2015 (Unaudited)			For the year ended December 31, 2014			For the six months ended June 30, 2015 (Unaudited)			For the year ended December 31, 2014
Capital Transactions:
Class A
Proceeds from shares sold	$	21,953,406		$	6,574,390		$	132,627,825		$	353,604,286
Reinvested distributions		—			1,281,926			—			—
Payments for shares redeemed		(4,639,390	)		(3,756,810	)		(167,348,335	)		(564,143,804	)
Change in Net Assets from Class A Share Transactions		17,314,016			4,099,506			(34,720,510	)		(210,539,518	)
Class C
Proceeds from shares sold		2,901,522			3,272,404			20,893,585			47,160,963
Reinvested distributions		—			608,129			—			—
Payments for shares redeemed		(473,632	)		(1,093,371	)		(11,807,310	)		(16,655,534	)
Change in Net Assets from Class C Share Transactions		2,427,890			2,787,162			9,086,275			30,505,429
Class I
Proceeds from shares sold		46,804,865			15,319,351			669,227,361			1,621,991,232
Reinvested distributions		—			4,428,229			—			—
Payments for shares redeemed		(3,637,129	)		(35,336,851	)		(457,939,873	)		(822,198,936	)
Change in Net Assets from Class I Share Transactions		43,167,736			(15,589,271	)		211,287,488			799,792,296
Class Y
Proceeds from shares sold		1,730,334			2,232,687			74,264,434			187,543,106
Reinvested distributions		—			885,602			—			—
Payments for shares redeemed		(55,480	)		(906,502	)		(38,323,282	)		(93,076,628	)
Change in Net Assets from Class Y Share Transactions		1,674,854			2,211,787			35,941,152			94,466,478
Change in net assets from capital transactions:	$	64,584,496		$	(6,490,816	)	$	221,594,405		$	714,224,685
Share Transactions:
Class A
Issued		1,561,092			494,796			5,591,932			15,427,099
Reinvested		—			100,982			—			—
Redeemed		(341,508	)		(280,407	)		(6,984,237	)		(24,506,686	)
Change in shares outstanding		1,219,584			315,371			(1,392,305	)		(9,079,587	)
Class C
Issued		216,248			254,945			947,929			2,214,584
Reinvested		—			49,765			—			—
Redeemed		(36,976	)		(82,338	)		(535,256	)		(782,083	)
Change in shares outstanding		179,272			222,372			412,673			1,432,501
Class I
Issued		3,339,986			1,156,717			27,511,567			69,336,502
Reinvested		—			348,626			—			—
Redeemed		(264,428	)		(2,641,236	)		(18,943,259	)		(35,523,578	)
Change in shares outstanding		3,075,558			(1,135,893	)		8,568,308			33,812,924
Class Y
Issued		125,867			168,726			3,060,857			8,060,507
Reinvested		—			69,549			—			—
Redeemed		(4,066	)		(66,413	)		(1,584,557	)		(3,987,297	)
Change in shares outstanding		121,801			171,862			1,476,300			4,073,210
Change in shares		4,596,215			(426,288	)		9,064,976			30,239,048

See accompanying Notes to Financial Statements.

DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2015 | DIAMOND-HILL.COM 39

Diamond Hill Funds

Statements of Changes in Net Assets

	Research Opportunities Fund						Financial Long-Short Fund
	For the six months ended June 30, 2015 (Unaudited)			For the year ended December 31, 2014			For the six months ended June 30, 2015 (Unaudited)			For the year ended December 31, 2014
From Operations
Net investment income (loss)	$	16,494		$	(35,208	)	$	18,318		$	(17,187	)
Net realized gains (losses) on security sales		3,649,213			5,537,934			795,488			2,334,465
Net realized gains (losses) on closed short positions		—			(208,743	)		—			(512,591	)
Net realized gains (losses) on foreign currency transactions		(1,739	)		(3,118	)		—			—
Net change in unrealized appreciation (depreciation) on investments and foreign currency translations		(1,065,400	)		(235,699	)		(706,811	)		318,785
Change in Net Assets from Operations		2,598,568			5,055,166			106,995			2,123,472
Distributions to Shareholders
From net investment income:
Class A		—			(4,864	)		—			—
Class I		—			(136,937	)		—			(42,765	)
Class Y		—			(71,226	)		—			—
From net realized gains on investments
Class A		—			(689,050	)		—			—
Class C		—			(48,069	)		—			—
Class I		—			(3,632,483	)		—			—
Class Y		—			(1,365,593	)		—			—
Change in Net Assets from Distributions to Shareholders		—			(5,948,222	)		—			(42,765	)
Change in Net Assets from Capital Transactions		11,991,538			12,463,191			4,566,260			(4,120,905	)
Total Change in Net Assets		14,590,106			11,570,135			4,673,255			(2,040,198	)
Net Assets:
Beginning of period		77,386,332			65,816,197			29,586,338			31,626,536
End of period	$	91,976,438		$	77,386,332		$	34,259,593		$	29,586,338
Accumulated Net Investment Income (Loss)	$	(371,325	)	$	(387,819	)	$	(53,879	)	$	(72,197	)

See accompanying Notes to Financial Statements.

40 DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2015 | DIAMOND-HILL.COM

Diamond Hill Funds

Statements of Changes in Net Assets

	Research Opportunities Fund						Financial Long-Short Fund
	For the six months ended June 30, 2015 (Unaudited)			For the year ended December 31, 2014			For the six months ended June 30, 2015 (Unaudited)			For the year ended December 31, 2014
Capital Transactions:
Class A
Proceeds from shares sold	$	6,014,813		$	3,466,741		$	1,121,026		$	1,773,833
Reinvested distributions		—			684,086			—			—
Payments for shares redeemed		(946,136	)		(1,379,684	)		(1,855,567	)		(8,439,654	)
Change in Net Assets from Class A Share Transactions		5,068,677			2,771,143			(734,541	)		(6,665,821	)
Class C
Proceeds from shares sold		5,351,898			161,017			130,740			456,348
Reinvested distributions		—			32,165			—			—
Payments for shares redeemed		(35,118	)		(7,706	)		(163,953	)		(1,317,301	)
Change in Net Assets from Class C Share Transactions		5,316,780			185,476			(33,213	)		(860,953	)
Class I
Proceeds from shares sold		11,246,818			14,210,006			7,383,223			7,450,674
Reinvested distributions		—			3,642,863			—			23,483
Payments for shares redeemed		(9,324,619	)		(10,449,087	)		(2,049,209	)		(4,068,288	)
Change in Net Assets from Class I Share Transactions		1,922,199			7,403,782			5,334,014			3,405,869
Class Y
Proceeds from shares sold		1,304,718			2,058,515			—			—
Reinvested distributions		—			318,230			—			—
Payments for shares redeemed		(1,620,836	)		(273,955	)		—			—
Change in Net Assets from Class Y Share Transactions		(316,118	)		2,102,790			—			—
Change in net assets from capital transactions:	$	11,991,538		$	12,463,191		$	4,566,260		$	(4,120,905	)
Share Transactions:
Class A
Issued		254,421			149,736			56,113			97,321
Reinvested		—			31,061			—			—
Redeemed		(40,963	)		(58,821	)		(95,096	)		(468,090	)
Change in shares outstanding		213,458			121,976			(38,983	)		(370,769	)
Class C
Issued		232,744			7,249			7,491			26,346
Reinvested		—			1,496			—			—
Redeemed		(1,557	)		(341	)		(9,021	)		(77,974	)
Change in shares outstanding		231,187			8,404			(1,530	)		(51,628	)
Class I
Issued		477,545			612,297			373,634			406,009
Reinvested		—			164,311			—			1,192
Redeemed		(397,636	)		(447,242	)		(106,255	)		(222,771	)
Change in shares outstanding		79,909			329,366			267,379			184,430
Class Y
Issued		56,006			87,218			—			—
Reinvested		—			14,310			—			—
Redeemed		(69,400	)		(11,912	)		—			—
Change in shares outstanding		(13,394	)		89,616			—			—
Change in shares		511,160			549,362			226,866			(237,967	)

See accompanying Notes to Financial Statements.

DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2015 | DIAMOND-HILL.COM 41

Diamond Hill Funds

Statements of Changes in Net Assets

	Strategic Income Fund
	For the six months ended June 30, 2015 (Unaudited)			For the year ended December 31, 2014
From Operations
Net investment income (loss)	$	6,166,486		$	10,023,683
Net realized gains (losses) on security sales		515,201			2,971,392
Net change in unrealized appreciation (depreciation) on investments		2,000,755			(8,718,179	)
Change in Net Assets from Operations		8,682,442			4,276,896
Distributions to Shareholders
From net investment income:
Class A		(787,126	)		(1,703,833	)
Class C		(507,761	)		(940,177	)
Class I		(4,216,346	)		(6,306,750	)
Class Y		(441,994	)		(684,523	)
Change in Net Assets from Distributions to Shareholders		(5,953,227	)		(9,635,283	)
Change in Net Assets from Capital Transactions		29,677,315			38,433,025
Total Change in Net Assets		32,406,530			33,074,638
Net Assets:
Beginning of period		219,938,668			186,864,030
End of period	$	252,345,198		$	219,938,668
Accumulated Net Investment Income (Loss)	$	864,938		$	651,679

See accompanying Notes to Financial Statements.

42 DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2015 | DIAMOND-HILL.COM

Diamond Hill Funds

Statements of Changes in Net Assets

	Strategic Income Fund
	For the six months ended June 30, 2015 (Unaudited)			For the year ended December 31, 2014
Capital Transactions:
Class A
Proceeds from shares sold	$	7,247,473		$	15,957,484
Reinvested distributions		614,789			1,343,253
Payments for shares redeemed		(5,990,082	)		(25,111,482	)
Change in Net Assets from Class A Share Transactions		1,872,180			(7,810,745	)
Class C
Proceeds from shares sold		1,766,319			3,210,666
Reinvested distributions		281,842			483,336
Payments for shares redeemed		(1,977,929	)		(5,155,055	)
Change in Net Assets from Class C Share Transactions		70,232			(1,461,053	)
Class I
Proceeds from shares sold		41,116,580			62,622,412
Reinvested distributions		3,739,290			5,276,429
Payments for shares redeemed		(19,272,847	)		(32,499,589	)
Change in Net Assets from Class I Share Transactions		25,583,023			35,399,252
Class Y
Proceeds from shares sold		1,725,193			12,129,992
Reinvested distributions		441,994			684,414
Payments for shares redeemed		(15,307	)		(508,835	)
Change in Net Assets from Class Y Share Transactions		2,151,880			12,305,571
Change in net assets from capital transactions:	$	29,677,315		$	38,433,025
Share Transactions:
Class A
Issued		649,817			1,423,260
Reinvested		55,304			120,274
Redeemed		(538,434	)		(2,242,148	)
Change in shares outstanding		166,687			(698,614	)
Class C
Issued		159,614			288,054
Reinvested		25,404			43,407
Redeemed		(178,249	)		(464,281	)
Change in shares outstanding		6,769			(132,820	)
Class I
Issued		3,711,346			5,624,478
Reinvested		337,297			474,994
Redeemed		(1,736,901	)		(2,950,922	)
Change in shares outstanding		2,311,742			3,148,550
Class Y
Issued		155,210			1,084,325
Reinvested		39,870			61,601
Redeemed		(1,375	)		(46,568	)
Change in shares outstanding		193,705			1,099,358
Change in shares		2,678,903			3,416,474

See accompanying Notes to Financial Statements.

DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2015 | DIAMOND-HILL.COM 43

Small Cap Fund

Financial Highlights

Selected data for a share outstanding throughout the periods indicated

Small Cap Fund	Net asset value, beginning of period		Net investment income (loss)			Net realized and unrealized gains (losses) on investments			Total from investment operations
Class A
For the six months ended June 30, 2015 (Unaudited)		$32.61		(0.01	)(C)		0.85			0.84
For the year ended December 31, 2014		$32.72		(0.11	)(C)		1.57			1.46
For the year ended December 31, 2013		$24.95		—	(C)(F)		9.86			9.86
For the year ended December 31, 2012		$23.04		0.07	(C)		2.88			2.95
For the year ended December 31, 2011		$25.80		(0.08	)		(1.80	)		(1.88	)
For the year ended December 31, 2010		$21.31		(0.05	)		4.95			4.90
Class C
For the six months ended June 30, 2015 (Unaudited)		$29.23		(0.12	)(C)		0.75			0.63
For the year ended December 31, 2014		$29.70		(0.33	)(C)		1.43			1.10
For the year ended December 31, 2013		$22.94		(0.21	)(C)		9.03			8.82
For the year ended December 31, 2012		$21.34		(0.10	)(C)		2.65			2.55
For the year ended December 31, 2011		$24.14		(0.25	)		(1.67	)		(1.92	)
For the year ended December 31, 2010		$20.12		(0.16	)		4.59			4.43
Class I
For the six months ended June 30, 2015 (Unaudited)		$33.04		0.03	(C)		0.86			0.89
For the year ended December 31, 2014		$33.10		(0.02	)(C)		1.59			1.57
For the year ended December 31, 2013		$25.21		0.07	(C)		9.98			10.05
For the year ended December 31, 2012		$23.27		0.14	(C)		2.90			3.04
For the year ended December 31, 2011		$26.01		(0.01	)		(1.82	)		(1.83	)
For the year ended December 31, 2010		$21.41		—	(F)		5.01			5.01
Class Y(G)
For the six months ended June 30, 2015 (Unaudited)		$33.05		0.07	(C)		0.84			0.91
For the year ended December 31, 2014		$33.09		0.03	(C)		1.60			1.63
For the year ended December 31, 2013		$25.20		0.12	(C)		9.97			10.09
For the year ended December 31, 2012		$23.27		0.20	(C)		2.88			3.08

^(A)  Total returns shown exclude the effect of applicable sales charges.

^(B)  Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between classes of shares issued.

^(C)  Net investment income (loss) per share has been calculated using the average daily shares outstanding during the period.

See accompanying Notes to Financial Statements.

44 DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2015 | DIAMOND-HILL.COM

Dividends from net investment income		Distributions from net realized gains			Total distributions			Net asset value at end of period		Total return(A)			Net assets at end of period (000’s)		Ratio of total expenses to average net assets			Ratio of net investment income (loss) to average net assets			Portfolio turnover rate(B)
	—		—			—			$33.45		2.58	%(D)		$556,323		1.29	%(E)		(0.06	)%(E)		7	%(D)
	—		(1.57	)		(1.57	)		$32.61		4.60	%		$571,941		1.30	%		(0.34	)%		16	%
	(0.03)		(2.06	)		(2.09	)		$32.72		39.70	%		$571,167		1.31	%		(0.01	)%		43	%
	(0.09)		(0.95	)		(1.04	)		$24.95		12.88	%		$390,371		1.31	%		0.30	%		13	%
	—		(0.88	)		(0.88	)		$23.04		(7.17	)%		$431,313		1.33	%		(0.32	)%		28	%
	—		(0.41	)		(0.41	)		$25.80		22.99	%		$501,237		1.37	%		(0.24	)%		35	%
	—		—			—			$29.86		2.16	%(D)		$58,980		2.04	%(E)		(0.79	)%(E)		7	%(D)
	—		(1.57	)		(1.57	)		$29.23		3.86	%		$51,794		2.05	%		(1.07	)%		16	%
	—		(2.06	)		(2.06	)		$29.70		38.64	%		$46,476		2.06	%		(0.76	)%		43	%
	—		(0.95	)		(0.95	)		$22.94		12.04	%		$29,917		2.06	%		(0.45	)%		13	%
	—		(0.88	)		(0.88	)		$21.34		(7.83	)%		$31,664		2.08	%		(1.07	)%		28	%
	—		(0.41	)		(0.41	)		$24.14		22.01	%		$35,093		2.12	%		(0.96	)%		35	%
	—		—			—			$33.93		2.69	%(D)		$786,670		1.04	%(E)		0.19	%(E)		7	%(D)
	(0.06)		(1.57	)		(1.63	)		$33.04		4.86	%		$659,199		1.05	%		(0.06	)%		16	%
	(0.10)		(2.06	)		(2.16	)		$33.10		40.08	%		$550,844		1.06	%		0.22	%		43	%
	(0.15)		(0.95	)		(1.10	)		$25.21		13.17	%		$298,473		1.06	%		0.56	%		13	%
	(0.03)		(0.88	)		(0.91	)		$23.27		(6.91	)%		$314,149		1.04	%		(0.03	)%		28	%
	—		(0.41	)		(0.41	)		$26.01		23.39	%		$312,295		1.00	%		0.20	%		35	%
	—		—			—			$33.96		2.75	%(D)		$190,068		0.90	%(E)		0.40	%(E)		7	%(D)
	(0.10)		(1.57	)		(1.67	)		$33.05		5.06	%		$157,665		0.90	%		0.10	%		16	%
	(0.14)		(2.06	)		(2.20	)		$33.09		40.25	%		$101,026		0.91	%		0.40	%		43	%
	(0.20)		(0.95	)		(1.15	)		$25.20		13.34	%		$63,439		0.91	%		0.82	%		13	%

^(D)  Not annualized.

^(E)  Annualized.

^(F)  Amount is less than $0.005.

^(G)  Inception date of Class Y is December 30, 2011. Class Y commenced public offering on January 3, 2012.

See accompanying Notes to Financial Statements.

DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2015 | DIAMOND-HILL.COM 45

Small-Mid Cap Fund

Financial Highlights

Selected data for a share outstanding throughout the periods indicated

Small-Mid Cap Fund	Net asset value, beginning of period		Net investment income (loss)			Net realized and unrealized gains (losses) on investments			Total from investment operations
Class A
For the six months ended June 30, 2015 (Unaudited)		$18.33		0.01	(C)		0.93			0.94
For the year ended December 31, 2014		$17.73		0.03	(C)		1.23			1.26
For the year ended December 31, 2013		$13.13		0.04	(C)		5.35			5.39
For the year ended December 31, 2012		$11.71		0.02	(C)		1.78			1.80
For the year ended December 31, 2011		$12.56		—	(F)		(0.53	)		(0.53	)
For the year ended December 31, 2010		$10.22		(0.04	)		2.38			2.34
Class C
For the six months ended June 30, 2015 (Unaudited)		$17.21		(0.06	)(C)		0.88			0.82
For the year ended December 31, 2014		$16.80		(0.10	)(C)		1.15			1.05
For the year ended December 31, 2013		$12.54		(0.07	)(C)		5.09			5.02
For the year ended December 31, 2012		$11.28		(0.07	)(C)		1.71			1.64
For the year ended December 31, 2011		$12.21		(0.06	)		(0.55	)		(0.61	)
For the year ended December 31, 2010		$10.00		(0.05	)		2.26			2.21
Class I
For the six months ended June 30, 2015 (Unaudited)		$18.47		0.03	(C)		0.95			0.98
For the year ended December 31, 2014		$17.87		0.08	(C)		1.22			1.30
For the year ended December 31, 2013		$13.21		0.09	(C)		5.38			5.47
For the year ended December 31, 2012		$11.78		0.05	(C)		1.80			1.85
For the year ended December 31, 2011		$12.61		0.04			(0.54	)		(0.50	)
For the year ended December 31, 2010		$10.23		0.02			2.37			2.39
Class Y(H)
For the six months ended June 30, 2015 (Unaudited)		$18.49		0.05	(C)		0.94			0.99
For the year ended December 31, 2014		$17.87		0.11	(C)		1.23			1.34
For the year ended December 31, 2013		$13.20		0.12	(C)		5.38			5.50
For the year ended December 31, 2012		$11.78		0.09	(C)		1.77			1.86

^(A)  Total returns shown exclude the effect of applicable sales charges.

^(B)  Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between classes of shares issued.

^(C)  Net investment income (loss) per share has been calculated using the average daily shares outstanding during the period.

See accompanying Notes to Financial Statements.

46 DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2015 | DIAMOND-HILL.COM

Dividends from net investment income			Distributions from net realized gains			Total distributions			Net asset value at end of period		Total return(A)			Net assets at end of period (000’s)		Ratio of total expenses to average net assets			Ratio of net investment income (loss) to average net assets			Portfolio turnover rate(B)
	—			—			—			$19.27		5.13	%(D)		$110,996		1.24	%(E)		0.07	%(E)		9	%(D)
	(0.02)			(0.64	)		(0.66	)		$18.33		7.17	%		$100,820		1.25	%		0.18	%		27	%
	(0.03)			(0.76	)		(0.79	)		$17.73		41.25	%		$61,563		1.26	%		0.27	%		35	%
	—	(F)		(0.38	)		(0.38	)		$13.13		15.43	%		$19,607		1.26	%		0.15	%		26	%
	—			(0.32	)		(0.32	)		$11.71		(4.19	)%		$17,461		1.28	%		—	%(G)		48	%
	—			—	(F)		—	(F)		$12.56		23.03	%		$17,216		1.32	%		(0.17	)%		35	%
	—			—			—			$18.03		4.76	%(D)		$26,999		1.99	%(E)		(0.69	)%(E)		9	%(D)
	—			(0.64	)		(0.64	)		$17.21		6.33	%		$25,276		2.00	%		(0.59	)%		27	%
	—			(0.76	)		(0.76	)		$16.80		40.21	%		$19,184		2.01	%		(0.45	)%		35	%
	—			(0.38	)		(0.38	)		$12.54		14.57	%		$9,169		2.01	%		(0.59	)%		26	%
	—			(0.32	)		(0.32	)		$11.28		(4.89	)%		$8,110		2.02	%		(0.74	)%		48	%
	—			—	(F)		—	(F)		$12.21		22.14	%		$7,417		2.07	%		(0.90	)%		35	%
	—			—			—			$19.45		5.31	%(D)		$417,612		0.99	%(E)		0.35	%(E)		9	%(D)
	(0.06)			(0.64	)		(0.70	)		$18.47		7.36	%		$264,824		1.00	%		0.42	%		27	%
	(0.05)			(0.76	)		(0.81	)		$17.87		41.64	%		$148,927		1.01	%		0.54	%		35	%
	(0.04)			(0.38	)		(0.42	)		$13.21		15.74	%		$53,514		1.01	%		0.42	%		26	%
	(0.01)			(0.32	)		(0.33	)		$11.78		(3.86	)%		$43,485		0.99	%		0.29	%		48	%
	(0.01)			—	(F)		(0.01	)		$12.61		23.43	%		$44,711		0.95	%		0.22	%		35	%
	—			—			—			$19.48		5.35	%(D)		$467,224		0.85	%(E)		0.49	%(E)		9	%(D)
	(0.08)			(0.64	)		(0.72	)		$18.49		7.60	%		$300,815		0.85	%		0.62	%		27	%
	(0.07)			(0.76	)		(0.83	)		$17.87		41.88	%		$106,068		0.86	%		0.73	%		35	%
	(0.06)			(0.38	)		(0.44	)		$13.20		15.84	%		$30,940		0.86	%		0.68	%		26	%

^(D)  Not annualized.

^(E)  Annualized

^(F)  Amount is less than $0.005.

^(G)  Amount is less than 0.005%.

^(H)  Inception date of Class Y is December 30, 2011. Class Y commenced public offering on January 3, 2012.

See accompanying Notes to Financial Statements.

DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2015 | DIAMOND-HILL.COM 47

Mid Cap Fund

Financial Highlights

Selected data for a share outstanding throughout the periods indicated

Mid-Cap Fund(A)	Net asset value, beginning of period		Net investment income (loss)(B)			Net realized and unrealized gains (losses) on investments		Total from investment operations
Class A
For the six months ended June 30, 2015 (Unaudited)		$10.70		0.02			0.46		0.48
For the year ended December 31, 2014		$10.00		0.06			0.70		0.76
Class C
For the six months ended June 30, 2015 (Unaudited)		$10.68		(0.02	)		0.45		0.43
For the year ended December 31, 2014		$10.00		(0.03	)		0.71		0.68
Class I
For the six months ended June 30, 2015 (Unaudited)		$10.72		0.03			0.46		0.49
For the year ended December 31, 2014		$10.00		0.09			0.70		0.79
Class Y
For the six months ended June 30, 2015 (Unaudited)		$10.73		0.04			0.46		0.50
For the year ended December 31, 2014		$10.00		0.09			0.71		0.80

^(A)  Inception date of the Fund is December 31, 2013. The Fund commenced public offering and investment operations on January 2, 2014.

^(B)  Net investment income (loss) per share has been calculated using the average daily shares outstanding during the period.

^(C)  Total returns shown exclude the effect of applicable sales charges.

See accompanying Notes to Financial Statements.

48 DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2015 | DIAMOND-HILL.COM

Dividends from net investment income		Distributions from net realized gains		Total distributions			Net asset value at end of period		Total return(C)			Net assets at end of period (000’s)		Ratio of total expenses to average net assets			Ratio of net investment income (loss) to average net assets			Portfolio turnover rate(D)
	—		—		—			$11.18		4.49	%(E)		$2,665		1.14	%(F)		0.40	%(F)		14	%(E)
	(0.06)		—		(0.06	)		$10.70		7.57	%		$2,120		1.15	%		0.59	%		28	%
	—		—		—			$11.11		4.03	%(E)		$36		1.89	%(F)		(0.32	)%(F)		14	%(E)
	—		—		—			$10.68		6.80	%		$22		1.90	%		(0.25	)%		28	%
	—		—		—			$11.21		4.57	%(E)		$2,887		0.89	%(F)		0.63	%(F)		14	%(E)
	(0.07)		—		(0.07	)		$10.72		7.91	%		$2,743		0.90	%		0.87	%		28	%
	—		—		—			$11.23		4.66	%(E)		$12,563		0.75	%(F)		0.77	%(F)		14	%(E)
	(0.07)		—		(0.07	)		$10.73		8.02	%		$11,419		0.75	%		0.87	%		28	%

^(D)  Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between classes of shares issued.

^(E)  Not annualized

^(F)  Annualized.

See accompanying Notes to Financial Statements.

DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2015 | DIAMOND-HILL.COM 49

Large Cap Fund

Financial Highlights

Selected data for a share outstanding throughout the periods indicated

Large Cap Fund	Net asset value, beginning of period		Net investment income (loss)			Net realized and unrealized gains (losses) on investments		Total from investment operations
Class A
For the six months ended June 30, 2015 (Unaudited)		$22.71		0.10	(C)		0.30		0.40
For the year ended December 31, 2014		$21.49		0.21	(C)		2.01		2.22
For the year ended December 31, 2013		$16.54		0.18	(C)		5.79		5.97
For the year ended December 31, 2012		$14.96		0.22	(C)		1.62		1.84
For the year ended December 31, 2011		$14.78		0.18	(C)		0.17		0.35
For the year ended December 31, 2010		$13.62		0.10			1.17		1.27
Class C
For the six months ended June 30, 2015 (Unaudited)		$21.77		0.02	(C)		0.28		0.30
For the year ended December 31, 2014		$20.68		0.04	(C)		1.93		1.97
For the year ended December 31, 2013		$15.98		0.03	(C)		5.58		5.61
For the year ended December 31, 2012		$14.46		0.10	(C)		1.56		1.66
For the year ended December 31, 2011		$14.29		0.06			0.16		0.22
For the year ended December 31, 2010		$13.18		0.02			1.09		1.11
Class I
For the six months ended June 30, 2015 (Unaudited)		$22.83		0.13	(C)		0.30		0.43
For the year ended December 31, 2014		$21.58		0.27	(C)		2.03		2.30
For the year ended December 31, 2013		$16.61		0.24	(C)		5.80		6.04
For the year ended December 31, 2012		$15.01		0.26	(C)		1.63		1.89
For the year ended December 31, 2011		$14.82		0.22			0.17		0.39
For the year ended December 31, 2010		$13.65		0.13			1.20		1.33
Class Y(G)
For the six months ended June 30, 2015 (Unaudited)		$22.84		0.15	(C)		0.29		0.44
For the year ended December 31, 2014		$21.59		0.31	(C)		2.02		2.33
For the year ended December 31, 2013		$16.60		0.26	(C)		5.83		6.09
For the year ended December 31, 2012		$15.01		0.30	(C)		1.62		1.92

^(A)  Total returns shown exclude the effect of applicable sales charges.

^(B)  Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between classes of shares issued.

^(C)  Net investment income (loss) per share has been calculated using the average daily shares outstanding during the period.

See accompanying Notes to Financial Statements.

50 DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2015 | DIAMOND-HILL.COM

Dividends from net investment income			Distributions from net realized gains			Total distributions			Net asset value at end of period		Total return(A)			Net assets at end of period (000’s)		Ratio of total expenses to average net assets			Ratio of net investment income (loss) to average net assets			Portfolio turnover rate(B)
	—			—			—			$23.11		1.76	%(D)		$1,178,281		1.04	%(E)		0.90	%(E)		9	%(D)
	(0.19)			(0.81	)		(1.00	)		$22.71		10.42	%		$1,182,155		1.05	%		0.94	%		24	%
	(0.16)			(0.86	)		(1.02	)		$21.49		36.33	%		$878,903		1.06	%		0.92	%		21	%
	(0.21)			(0.05	)		(0.26	)		$16.54		12.29	%		$617,407		1.06	%		1.37	%		28	%
	(0.17)			—			(0.17	)		$14.96		2.35	%		$593,124		1.12	%		1.19	%		16	%
	(0.11)			—			(0.11	)		$14.78		9.29	%		$459,659		1.18	%		0.90	%		16	%
	—			—			—			$22.07		1.38	%(D)		$84,653		1.79	%(E)		0.14	%(E)		9	%(D)
	(0.07)			(0.81	)		(0.88	)		$21.77		9.60	%		$83,781		1.80	%		0.19	%		24	%
	(0.05)			(0.86	)		(0.91	)		$20.68		35.33	%		$53,241		1.81	%		0.18	%		21	%
	(0.09)			(0.05	)		(0.14	)		$15.98		11.49	%		$33,305		1.81	%		0.62	%		28	%
	(0.05)			—			(0.05	)		$14.46		1.55	%		$30,465		1.87	%		0.45	%		16	%
	—	(F)		—			—	(F)		$14.29		8.45	%		$29,274		1.93	%		0.15	%		16	%
	—			—			—			$23.26		1.88	%(D)		$1,713,960		0.79	%(E)		1.14	%(E)		9	%(D)
	(0.24)			(0.81	)		(1.05	)		$22.83		10.74	%		$1,606,797		0.80	%		1.20	%		24	%
	(0.21)			(0.86	)		(1.07	)		$21.58		36.60	%		$1,295,477		0.81	%		1.18	%		21	%
	(0.24)			(0.05	)		(0.29	)		$16.61		12.62	%		$791,031		0.81	%		1.62	%		28	%
	(0.20)			—			(0.20	)		$15.01		2.60	%		$684,156		0.83	%		1.49	%		16	%
	(0.16)			—			(0.16	)		$14.82		9.72	%		$623,147		0.81	%		1.29	%		16	%
	—			—			—			$23.28		1.93	%(D)		$428,911		0.65	%(E)		1.27	%(E)		9	%(D)
	(0.27)			(0.81	)		(1.08	)		$22.84		10.89	%		$373,711		0.65	%		1.36	%		24	%
	(0.24)			(0.86	)		(1.10	)		$21.59		36.87	%		$302,458		0.66	%		1.32	%		21	%
	(0.28)			(0.05	)		(0.33	)		$16.60		12.79	%		$224,073		0.66	%		1.87	%		28	%

^(D)  Not annualized.

^(E)  Annualized

^(F)  Amount is less than $0.005.

^(G)  Inception date of Class Y is December 30, 2011. Class Y commenced public offering on January 3, 2012.

See accompanying Notes to Financial Statements.

DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2015 | DIAMOND-HILL.COM 51

Select Fund

Financial Highlights

Selected data for a share outstanding throughout the periods indicated

Select Fund	Net asset value, beginning of period		Net investment income (loss)			Net realized and unrealized gains (losses) on investments			Total from investment operations
Class A
For the six months ended June 30, 2015 (Unaudited)		$12.96		—	(C)(F)		0.88			0.88
For the year ended December 31, 2014		$13.00		0.05	(C)		1.38			1.43
For the year ended December 31, 2013		$10.45		0.05	(C)		4.48			4.53
For the year ended December 31, 2012		$9.69		0.12	(C)		0.97			1.09
For the year ended December 31, 2011		$9.99		0.08			(0.33	)		(0.25	)
For the year ended December 31, 2010		$9.02		0.07			0.91			0.98
Class C
For the six months ended June 30, 2015 (Unaudited)		$12.54		(0.05	)(C)		0.85			0.80
For the year ended December 31, 2014		$12.67		(0.05	)(C)		1.34			1.29
For the year ended December 31, 2013		$10.25		(0.04	)(C)		4.38			4.34
For the year ended December 31, 2012		$9.51		0.04	(C)		0.95			0.99
For the year ended December 31, 2011		$9.83		0.02			(0.34	)		(0.32	)
For the year ended December 31, 2010		$8.94		(0.01	)		0.90			0.89
Class I
For the six months ended June 30, 2015 (Unaudited)		$12.95		0.02	(C)		0.88			0.90
For the year ended December 31, 2014		$12.97		0.09	(C)		1.38			1.47
For the year ended December 31, 2013		$10.43		0.09	(C)		4.46			4.55
For the year ended December 31, 2012		$9.68		0.15	(C)		0.96			1.11
For the year ended December 31, 2011		$9.98		0.11			(0.33	)		(0.22	)
For the year ended December 31, 2010		$9.02		0.07			0.94			1.01
Class Y(G)
For the six months ended June 30, 2015 (Unaudited)		$12.96		0.02	(C)		0.89			0.91
For the year ended December 31, 2014		$12.99		0.10	(C)		1.39			1.49
For the year ended December 31, 2013		$10.43		0.11	(C)		4.48			4.59
For the year ended December 31, 2012		$9.68		0.17	(C)		0.96			1.13

^(A)  Total returns shown exclude the effect of applicable sales charges.

^(B)  Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between classes of shares issued.

^(C)  Net investment income (loss) per share has been calculated using the average daily shares outstanding during the period.

See accompanying Notes to Financial Statements.

52 DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2015 | DIAMOND-HILL.COM

Dividends from net investment income		Distributions from net realized gains			Total distributions			Net asset value at end of period		Total return(A)			Net assets at end of period (000’s)		Ratio of total expenses to average net assets			Ratio of net investment income (loss) to average net assets			Portfolio turnover rate(B)
	—		—			—			$13.84		6.79	%(D)		$30,732		1.19	%(E)		0.01	%(E)		19	%(D)
	(0.05)		(1.42	)		(1.47	)		$12.96		11.30	%		$12,963		1.20	%		0.36	%		53	%
	(0.09)		(1.89	)		(1.98	)		$13.00		44.04	%		$8,905		1.22	%		0.42	%		70	%
	(0.08)		(0.25	)		(0.33	)		$10.45		11.27	%		$7,778		1.21	%		1.15	%		38	%
	(0.05)		—			(0.05	)		$9.69		(2.53	)%		$8,071		1.23	%		0.92	%		26	%
	(0.01)		—			(0.01	)		$9.99		10.83	%		$7,437		1.28	%		0.67	%		18	%
	—		—			—			$13.34		6.38	%(D)		$11,187		1.94	%(E)		(0.78	)%(E)		19	%(D)
	—		(1.42	)		(1.42	)		$12.54		10.46	%		$8,265		1.95	%		(0.39	)%		53	%
	(0.03)		(1.89	)		(1.92	)		$12.67		43.08	%		$5,533		1.97	%		(0.35	)%		70	%
	—		(0.25	)		(0.25	)		$10.25		10.44	%		$3,271		1.96	%		0.41	%		38	%
	—		—			—			$9.51		(3.26	)%		$3,630		1.98	%		0.15	%		26	%
	—		—			—			$9.83		9.96	%		$4,254		2.03	%		(0.08	)%		18	%
	—		—			—			$13.85		6.95	%(D)		$76,837		0.94	%(E)		0.22	%(E)		19	%(D)
	(0.07)		(1.42	)		(1.49	)		$12.95		11.57	%		$31,999		0.95	%		0.64	%		53	%
	(0.12)		(1.89	)		(2.01	)		$12.97		44.35	%		$46,787		0.97	%		0.66	%		70	%
	(0.11)		(0.25	)		(0.36	)		$10.43		11.54	%		$41,862		0.96	%		1.44	%		38	%
	(0.08)		—			(0.08	)		$9.68		(2.25	)%		$34,388		0.95	%		1.21	%		26	%
	(0.05)		—			(0.05	)		$9.98		11.19	%		$31,619		0.91	%		1.05	%		18	%
	—		—			—			$13.87		7.02	%(D)		$11,049		0.80	%(E)		0.35	%(E)		19	%(D)
	(0.10)		(1.42	)		(1.52	)		$12.96		11.74	%		$8,746		0.80	%		0.76	%		53	%
	(0.14)		(1.89	)		(2.03	)		$12.99		44.70	%		$6,534		0.82	%		0.82	%		70	%
	(0.13)		(0.25	)		(0.38	)		$10.43		11.69	%		$5,788		0.81	%		1.62	%		38	%

^(D)  Not annualized.

^(E)  Annualized.

^(F)  Amount is less than $0.005

^(G)  Inception date of Class Y is December 30, 2011. Class Y commenced public offering on January 3, 2012.

See accompanying Notes to Financial Statements.

DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2015 | DIAMOND-HILL.COM 53

Long-Short Fund

Financial Highlights

Selected data for a share outstanding throughout the periods indicated

Long-Short Fund	Net asset value, beginning of period		Net investment income (loss)			Net realized and unrealized gains (losses) on investments			Total from investment operations
Class A
For the six months ended June 30, 2015 (Unaudited)		$23.87		(0.05	)(D)		0.24			0.19
For the year ended December 31, 2014		$22.26		(0.08	)(D)		1.69			1.61
For the year ended December 31, 2013		$18.15		(0.05	)(D)		4.21			4.16
For the year ended December 31, 2012		$16.75		0.06	(D)		1.36			1.42
For the year ended December 31, 2011		$16.26		0.03	(D)		0.46			0.49
For the year ended December 31, 2010		$16.31		—	(G)		(0.05	)		(0.05	)
Class C
For the six months ended June 30, 2015 (Unaudited)		$21.98		(0.13	)(D)		0.22			0.09
For the year ended December 31, 2014		$20.65		(0.23	)(D)		1.56			1.33
For the year ended December 31, 2013		$16.93		(0.19	)(D)		3.91			3.72
For the year ended December 31, 2012		$15.72		(0.07	)(D)		1.28			1.21
For the year ended December 31, 2011		$15.37		(0.08	)(D)		0.43			0.35
For the year ended December 31, 2010		$15.54		(0.19	)		0.02			(0.17	)
Class I
For the six months ended June 30, 2015 (Unaudited)		$24.22		(0.02	)(D)		0.24			0.22
For the year ended December 31, 2014		$22.52		(0.02	)(D)		1.72			1.70
For the year ended December 31, 2013		$18.35		—	(D)(G)		4.26			4.26
For the year ended December 31, 2012		$16.93		0.10	(D)		1.38			1.48
For the year ended December 31, 2011		$16.42		0.09	(D)		0.45			0.54
For the year ended December 31, 2010		$16.42		0.04			(0.03	)		0.01
Class Y(I)
For the six months ended June 30, 2015 (Unaudited)		$24.25		(0.01	)(D)		0.25			0.24
For the year ended December 31, 2014		$22.52		0.01	(D)		1.72			1.73
For the year ended December 31, 2013		$18.35		0.04	(D)		4.25			4.29
For the year ended December 31, 2012		$16.93		0.14	(D)		1.37			1.51

^(A)  Total returns shown exclude the effect of applicable sales charges.

^(B)  This fund invests in short positions and as such incurs certain expenses and fees. If such expenses and fees had not occurred, the ratios of total expenses to average net assets would have been 1.39% for Class A, 2.14% for Class C, 1.14% for Class I and 1.00% for Class Y.

^(C)  Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between classes of shares issued.

^(D)  Net investment income (loss) per share has been calculated using the average daily shares outstanding during the period.

See accompanying Notes to Financial Statements.

54 DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2015 | DIAMOND-HILL.COM

Dividends from net investment income		Total distributions			Net asset value at end of period		Total return(A)			Net assets at end of period (000’s)		Ratio of total expenses to average net assets(B)			Ratio of net investment income (loss) to average net assets			Portfolio turnover rate(C)
	—		—			$24.06		0.80	%(E)		$675,551		1.80	%(F)		(0.43	)%(F)		27	%(E)
	—		—			$23.87		7.23	%		$703,572		1.83	%		(0.33	)%		60	%
	(0.05)		(0.05	)		$22.26		22.92	%		$858,112		1.83	%		(0.25	)%		30	%
	(0.02)		(0.02	)		$18.15		8.46	%		$533,722		1.75	%		0.32	%		39	%
	—		—			$16.75		3.01	%		$512,870		1.67	%		0.21	%		50	%
	—		—			$16.26		(0.31	)%		$698,670		1.81	%		0.01	%		43	%
	—		—			$22.07		0.41	%(D)		$180,072		2.55	%(F)		(1.18	)%(F)		27	%(E)
	—		—			$21.98		6.44	%		$170,278		2.58	%		(1.09	)%		60	%
	—		—			$20.65		21.97	%		$130,388		2.58	%		(0.99	)%		30	%
	—		—			$16.93		7.70	%		$103,393		2.50	%		(0.43	)%		39	%
	—		—			$15.72		2.28	%		$119,850		2.43	%		(0.54	)%		50	%
	—		—			$15.37		(1.09	)%		$179,214		2.56	%		(0.73	)%		43	%
	—		—			$24.44		0.91	%(D)		$3,052,516		1.51	%(F)		(0.18	)%(F)		27	%(E)
	—		—			$24.22		7.55	%		$2,817,671		1.58	%		(0.09	)%		60	%
	(0.09)		(0.09	)		$22.52		23.19	%		$1,859,054		1.58	%		—	%(H)		30	%
	(0.06)		(0.06	)		$18.35		8.77	%		$1,554,623		1.50	%		0.58	%		39	%
	(0.03)		(0.03	)		$16.93		3.29	%		$1,213,122		1.39	%		0.52	%		50	%
	(0.01)		(0.01	)		$16.42		0.03	%		$1,045,686		1.46	%		0.42	%		43	%
	—		—			$24.49		0.99	%(C)		$319,477		1.41	%(F)		(0.05	)%(F)		27	%(E)
	—		—			$24.25		7.68	%		$280,595		1.43	%		0.06	%		60	%
	(0.12)		(0.12	)		$22.52		23.39	%		$168,835		1.43	%		0.18	%		30	%
	(0.09)		(0.09	)		$18.35		8.95	%		$83,409		1.35	%		0.79	%		39	%

^(E)  Not annualized.

^(F)  Annualized.

^(G)  Amount is less than $0.005.

^(H)  Amount is less than 0.005%.

^(I)  Inception date of Class Y is December 30, 2011. Class Y commenced public offering on January 3, 2012.

See accompanying Notes to Financial Statements.

DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2015 | DIAMOND-HILL.COM 55

Research Opportunities Fund

Financial Highlights

Selected data for a share outstanding throughout the periods indicated

Research Opportunities Fund(A)	Net asset value, beginning of period		Net investment income (loss)(B)			Net realized and unrealized gains (losses) on investments		Total from investment operations
Class A
For the six months ended June 30, 2015 (Unaudited)		$22.52		(0.02	)		0.81		0.79
For the year ended December 31, 2014		$22.82		(0.07	)		1.62		1.55
For the year ended December 31, 2013		$18.34		(0.10	)		6.01		5.91
For the year ended December 31, 2012		$16.60		0.02			1.93		1.95
Class C
For the six months ended June 30, 2015 (Unaudited)		$22.00		(0.09	)		0.77		0.68
For the year ended December 31, 2014		$22.49		(0.24	)		1.58		1.34
For the year ended December 31, 2013		$18.22		(0.26	)		5.96		5.70
For the year ended December 31, 2012		$16.60		(0.09	)		1.90		1.81
Class I
For the six months ended June 30, 2015 (Unaudited)		$22.61		0.01			0.81		0.82
For the year ended December 31, 2014		$22.90		(0.01	)		1.62		1.61
For the year ended December 31, 2013		$18.36		(0.04	)		6.01		5.97
For the year ended December 31, 2012		$16.60		0.05			1.95		2.00
Class Y
For the six months ended June 30, 2015 (Unaudited)		$22.64		0.02			0.82		0.84
For the year ended December 31, 2014		$22.92		0.03			1.62		1.65
For the year ended December 31, 2013		$18.36		—	(H)		6.02		6.02
For the year ended December 31, 2012		$16.60		0.08			1.94		2.02

^(A)  Inception date of the Fund is December 30, 2011. The Fund commenced public offering on January 3, 2012.

^(B)  Net investment income (loss) per share has been calculated using the average daily shares outstanding during the period.

^(C)  Total returns shown exclude the effect of applicable sales charges.

^(D)  This fund invests in short positions and as such incurs certain expenses and fees. If such expenses and fees had not occurred, the ratios of total expenses to average net assets would have been 1.49% for Class A, 2.24% for Class C, 1.24% for Class I and 1.10% for Class Y.

See accompanying Notes to Financial Statements.

56 DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2015 | DIAMOND-HILL.COM

Dividends from net investment income			Distributions from net realized gains			Total distributions			Net asset value at end of period		Total return(C)			Net assets at end of period (000’s)		Ratio of total expenses to average net assets(D)			Ratio of net investment income (loss) to average net assets			Portfolio turnover rate(E)
	—			—			—			$23.31		3.51	%(F)		$14,800		1.75	%(G)		(0.19	)%(G)		57	%(F)
	(0.02)			(1.83	)		(1.85	)		$22.52		6.96	%		$9,492		1.74	%		(0.29	)%		57	%
	—			(1.43	)		(1.43	)		$22.82		32.43	%		$6,836		1.77	%		(0.45	)%		72	%
	(0.02)			(0.19	)		(0.21	)		$18.34		11.73	%		$1,120		1.63	%		0.10	%		35	%
	—			—			—			$22.68		3.09	%(F)		$5,933		2.50	%(G)		(0.82	)%(G)		57	%(F)
	—			(1.83	)		(1.83	)		$22.00		6.17	%		$668		2.49	%		(1.03	)%		57	%
	—			(1.43	)		(1.43	)		$22.49		31.48	%		$494		2.52	%		(1.19	)%		72	%
	—			(0.19	)		(0.19	)		$18.22		10.91	%		$148		2.38	%		(0.51	)%		35	%
	—			—			—			$23.43		3.63	%(F)		$53,609		1.50	%(G)		0.06	%(G)		57	%(F)
	(0.07)			(1.83	)		(1.90	)		$22.61		7.21	%		$49,920		1.49	%		0.50	%		57	%
	—	(H)		(1.43	)		(1.43	)		$22.90		32.76	%		$43,018		1.52	%		(0.17	)%		72	%
	(0.05)			(0.19	)		(0.24	)		$18.36		12.03	%		$15,978		1.38	%		0.30	%		35	%
	—			—			—			$23.48		3.71	%(F)		$17,634		1.36	%(G)		0.21	%(G)		57	%(F)
	(0.10)			(1.83	)		(1.93	)		$22.64		7.37	%		$17,307		1.34	%		0.11	%		57	%
	(0.03)			(1.43	)		(1.46	)		$22.92		32.99	%		$15,468		1.37	%		0.02	%		72	%
	(0.07)			(0.19	)		(0.26	)		$18.36		12.17	%		$11,572		1.23	%		0.45	%		35	%

^(E)  Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between classes of shares issued.

^(F)  Not annualized.

^(G)  Annualized.

^(H)  Amount is less than $0.005.

See accompanying Notes to Financial Statements.

DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2015 | DIAMOND-HILL.COM 57

Financial Long-Short Fund

Financial Highlights

Selected data for a share outstanding throughout the periods indicated

Financial Long-Short Fund	Net asset value, beginning of period		Net investment income (loss)			Net realized and unrealized gains (losses) on investments			Total from investment operations
Class A
For the six months ended June 30, 2015 (Unaudited)		$19.61		0.01	(D)		0.11			0.12
For the year ended December 31, 2014		$18.13		(0.02	)(D)		1.50			1.48
For the year ended December 31, 2013		$13.24		(0.05	)(D)		4.94			4.89
For the year ended December 31, 2012		$10.51		0.06	(D)		2.74			2.80
For the year ended December 31, 2011		$12.18		0.02			(1.65	)		(1.63	)
For the year ended December 31, 2010		$10.43		0.02			1.73			1.75
Class C
For the six months ended June 30, 2015 (Unaudited)		$18.26		(0.06	)(D)		0.11			0.05
For the year ended December 31, 2014		$17.00		(0.15	)(D)		1.41			1.26
For the year ended December 31, 2013		$12.51		(0.17	)(D)		4.66			4.49
For the year ended December 31, 2012		$9.96		(0.02	)(D)		2.57			2.55
For the year ended December 31, 2011		$11.58		(0.07	)(D)		(1.55	)		(1.62	)
For the year ended December 31, 2010		$9.99		(0.10	)		1.69			1.59
Class I
For the six months ended June 30, 2015 (Unaudited)		$19.57		0.03	(D)		0.12			0.15
For the year ended December 31, 2014		$18.10		0.02	(D)		1.50			1.52
For the year ended December 31, 2013		$13.18		(0.02	)(D)		4.94			4.92
For the year ended December 31, 2012		$10.47		0.10	(D)		2.72			2.82
For the year ended December 31, 2011		$12.14		0.07			(1.67	)		(1.60	)
For the year ended December 31, 2010		$10.37		0.08			1.71			1.79

^(A)  Total returns shown exclude the effect of applicable sales charges.

^(B)  This fund invests in short positions and as such incurs certain expenses and fees. If such expenses and fees had not occurred, the ratios of total expenses to average net assets would have been 1.49% for Class A, 2.24% for Class C and 1.24% for Class I.

^(C)  Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between classes of shares issued.

See accompanying Notes to Financial Statements.

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Dividends from net investment income		Total distributions			Net asset value at end of period		Total return(A)			Net assets at end of period (000’s)		Ratio of total expenses to average net assets(B)			Ratio of net investment income (loss) to average net assets			Portfolio turnover rate(C)
	—		—			$19.73		0.61	%(E)		$11,349		1.76	%(F)		0.08	%(F)		20	%(E)
	—		—			$19.61		8.16	%		$12,043		1.74	%		(0.10	)%		51	%
	—		—			$18.13		36.93	%		$17,852		1.70	%		(0.31	)%		66	%
	(0.07)		(0.07	)		$13.24		26.62	%		$7,862		1.76	%		0.49	%		58	%
	(0.04)		(0.04	)		$10.51		(13.39	)%		$6,650		1.66	%		0.14	%		52	%
	—		—			$12.18		16.78	%		$8,543		1.71	%		0.09	%		60	%
	—		—			$18.31		0.27	%(E)		$2,211		2.51	%(F)		(0.69	)%(F)		20	%(E)
	—		—			$18.26		7.41	%		$2,233		2.49	%		(0.86	)%		51	%
	—		—			$17.00		35.89	%		$2,958		2.45	%		(1.06	)%		66	%
	—		—			$12.51		25.60	%		$820		2.51	%		(0.20	)%		58	%
	—		—			$9.96		(13.99	)%		$795		2.41	%		(0.60	)%		52	%
	—		—			$11.58		15.92	%		$1,381		2.46	%		(0.66	)%		60	%
	—		—			$19.72		0.77	%(E)		$20,699		1.51	%(F)		0.27	%(F)		20	%(E)
	(0.05)		(0.05	)		$19.57		8.42	%		$15,310		1.49	%		0.12	%		51	%
	—		—			$18.10		37.33	%		$10,817		1.45	%		(0.12	)%		66	%
	(0.11)		(0.11	)		$13.18		26.94	%		$3,931		1.51	%		0.85	%		58	%
	(0.07)		(0.07	)		$10.47		(13.21	)%		$1,584		1.37	%		0.47	%		52	%
	(0.02)		(0.02	)		$12.14		17.29	%		$1,873		1.34	%		0.45	%		60	%

^(D)  Net investment income (loss) per share has been calculated using the average daily shares outstanding during the period.

^(E)  Not annualized.

^(F)  Annualized.

See accompanying Notes to Financial Statements.

DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2015 | DIAMOND-HILL.COM 59

Strategic Income Fund

Financial Highlights

Selected data for a share outstanding throughout the periods indicated

Strategic Income Fund	Net asset value, beginning of period		Net investment income (loss)			Net realized and unrealized gains (losses) on investments			Total from investment operations
Class A
For the six months ended June 30, 2015 (Unaudited)		$10.94		0.28	(C)		0.13			0.41
For the year ended December 31, 2014		$11.19		0.51	(C)		(0.28	)		0.23
For the year ended December 31, 2013		$11.18		0.56	(C)		—	(F)		0.56
For the year ended December 31, 2012		$10.79		0.62	(C)		0.39			1.01
For the year ended December 31, 2011		$10.86		0.65			(0.09	)		0.56
For the year ended December 31, 2010		$10.15		0.64			0.69			1.33
Class C
For the six months ended June 30, 2015 (Unaudited)		$10.92		0.24	(C)		0.13			0.37
For the year ended December 31, 2014		$11.17		0.42	(C)		(0.27	)		0.15
For the year ended December 31, 2013		$11.17		0.47	(C)		—	(F)		0.47
For the year ended December 31, 2012		$10.78		0.53	(C)		0.40			0.93
For the year ended December 31, 2011		$10.85		0.56			(0.08	)		0.48
For the year ended December 31, 2010		$10.15		0.54			0.70			1.24
Class I
For the six months ended June 30, 2015 (Unaudited)		$10.91		0.29	(C)		0.13			0.42
For the year ended December 31, 2014		$11.16		0.54	(C)		(0.27	)		0.27
For the year ended December 31, 2013		$11.16		0.58	(C)		—	(F)		0.58
For the year ended December 31, 2012		$10.77		0.64	(C)		0.40			1.04
For the year ended December 31, 2011		$10.84		0.67			(0.08	)		0.59
For the year ended December 31, 2010		$10.13		0.64			0.72			1.36
Class Y(G)
For the six months ended June 30, 2015 (Unaudited)		$10.91		0.30	(C)		0.13			0.43
For the year ended December 31, 2014		$11.16		0.55	(C)		(0.27	)		0.28
For the year ended December 31, 2013		$11.15		0.60	(C)		—	(F)		0.60
For the year ended December 31, 2012		$10.77		0.66	(C)		0.38			1.04

^(A)  Total returns shown exclude the effect of applicable sales charges.

^(B)  Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between classes of shares issued.

^(C)  Net investment income (loss) per share has been calculated using the average daily shares outstanding during the period.

See accompanying Notes to Financial Statements.

60 DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2015 | DIAMOND-HILL.COM

Dividends from net investment income		Total distributions			Net asset value at end of period		Total return(A)			Net assets at end of period (000’s)		Ratio of total expenses to average net assets			Ratio of net investment income (loss) to average net assets			Portfolio turnover rate(B)
	(0.27)		(0.27	)		$11.08		3.73	%(D)		$33,532		0.95	%(E)		5.08	%(E)		29	%(D)
	(0.48)		(0.48	)		$10.94		2.10	%		$31,282		1.00	%		4.52	%		56	%
	(0.55)		(0.55	)		$11.19		5.13	%		$39,801		1.02	%		5.00	%		60	%
	(0.62)		(0.62	)		$11.18		9.55	%		$44,374		1.02	%		5.57	%		33	%
	(0.63)		(0.63	)		$10.79		5.21	%		$38,895		1.02	%		5.80	%		36	%
	(0.62)		(0.62	)		$10.86		13.33	%		$42,360		1.06	%		5.81	%		68	%
	(0.23)		(0.23	)		$11.06		3.38	%(D)		$24,465		1.70	%(E)		4.33	%(E)		29	%(D)
	(0.40)		(0.40	)		$10.92		1.37	%		$24,088		1.75	%		3.80	%		56	%
	(0.47)		(0.47	)		$11.17		4.26	%		$26,126		1.77	%		4.25	%		60	%
	(0.54)		(0.54	)		$11.17		8.76	%		$27,801		1.77	%		4.81	%		33	%
	(0.55)		(0.55	)		$10.78		4.48	%		$23,717		1.77	%		5.06	%		36	%
	(0.54)		(0.54	)		$10.85		12.39	%		$24,264		1.81	%		5.06	%		68	%
	(0.28)		(0.28	)		$11.05		3.88	%(D)		$176,174		0.70	%(E)		5.33	%(E)		29	%(D)
	(0.52)		(0.52	)		$10.91		2.38	%		$148,737		0.75	%		4.82	%		56	%
	(0.58)		(0.58	)		$11.16		5.30	%		$117,009		0.77	%		5.24	%		60	%
	(0.65)		(0.65	)		$11.16		9.83	%		$103,738		0.77	%		5.81	%		33	%
	(0.66)		(0.66	)		$10.77		5.53	%		$83,418		0.73	%		6.10	%		36	%
	(0.65)		(0.65	)		$10.84		13.77	%		$76,893		0.69	%		6.18	%		68	%
	(0.29)		(0.29	)		$11.05		3.93	%(D)		$18,175		0.56	%(E)		5.47	%(E)		29	%(D)
	(0.53)		(0.53	)		$10.91		2.54	%		$15,831		0.60	%		4.96	%		56	%
	(0.59)		(0.59	)		$11.16		5.55	%		$3,927		0.62	%		5.35	%		60	%
	(0.66)		(0.66	)		$11.15		9.90	%		$2,515		0.62	%		5.95	%		33	%

^(D)  Not annualized.

^(E)  Annualized.

^(F)  Amount is less than $0.005.

^(G)  Inception date of Class Y is December 30, 2011. Class Y commenced public offering on January 3, 2012.

See accompanying Notes to Financial Statements.

DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2015 | DIAMOND-HILL.COM 61

Diamond Hill Funds

Notes to Financial Statements

June 30, 2015 (Unaudited)

Organization

The Diamond Hill Small Cap Fund (“Small Cap Fund”), Diamond Hill Small-Mid Cap Fund (“Small-Mid Cap Fund”), Diamond Hill Mid Cap Fund (“Mid Cap Fund”), Diamond Hill Large Cap Fund (“Large Cap Fund”), Diamond Hill Select Fund (“Select Fund”), Diamond Hill Long-Short Fund (“Long-Short Fund”), Diamond Hill Research Opportunities Fund (“Research Opportunities Fund”), Diamond Hill Financial Long-Short Fund (“Financial Long-Short Fund”) and Diamond Hill Strategic Income Fund (“Strategic Income Fund”), are each a series of the Diamond Hill Funds (the “Trust”) (each a “Fund” and collectively the “Funds”). The Trust is an Ohio business trust, which is registered under the Investment Company Act of 1940, as amended, (the “1940 Act”) as an open-end, management investment company. Each Fund is a diversified series of the Trust.

Effective June 12, 2015, the Long-Short Fund closed to most new investors.

With the exception of the Financial Long-Short Fund, the Funds offer four classes of shares: Class A, Class C, Class I and Class Y. The Financial Long-Short Fund offers three classes of shares: Class A, Class C and Class I. Each class of shares for each Fund has identical rights and privileges except with respect to distribution (12b-1) and service fees, voting rights on matters affecting a single class of shares, exchange privileges of each class of shares and sales charges. Class A has a maximum sales charge on purchases of 5.00% as a percentage of the original purchase price except for Strategic Income Fund which is 3.50%. Class C has a contingent deferred sales charge of 1.00% for shares redeemed within a year of the purchase date.

Significant Accounting Policies

The following is a summary of the Funds’ significant accounting policies:

Estimates — The preparation of financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.

Security valuation — The Funds record their investments at fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The valuation techniques used by the Funds maximize the use of observable inputs and minimize the use of unobservable inputs in determining fair value. These inputs are summarized in the three broad levels listed below:

• Level 1 — quoted prices in active markets for identical securities

• Level 2 — other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)

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Diamond Hill Funds

Notes to Financial Statements (Continued)

June 30, 2015 (Unaudited)

• Level 3 — significant unobservable inputs (including the Funds’ own assumptions in determining the fair value of investments)

Listed securities for which market quotations are readily available are valued at the closing prices as determined by the primary exchange where the securities are traded. Unlisted securities or listed securities for which the latest sales prices are not readily available are valued at the closing bid price in the principal market where such securities are normally traded. Investments in other investment companies are valued at their reported net asset value. In each of these types of situations, valuations are typically categorized as Level 1 in the fair value hierarchy.

Debt securities are valued on the basis of valuations provided by dealers or by an independent pricing service that determines valuations based upon market transactions for normal, institutional-size trading units of similar securities. Short-term debt investments of sufficient credit quality maturing in less than 61 days may be valued at amortized cost, which may approximate fair value. In each of these situations, valuations are typically categorized as Level 2 in the fair value hierarchy.

Securities for which market quotations are not readily available (e.g., an approved pricing service does not provide a price, certain stale prices, or an event occurs that materially affects the furnished price) are valued by the Fair Value Committee. In these cases, the Fair Value Committee, established and appointed by the Trustees, determines in good faith, subject to Trust procedures, the fair value of portfolio securities held by a Fund (“good faith fair valuation”). When a good faith fair valuation of a security is required, consideration is generally given to a number of factors, including, but not limited to the following: dealer quotes, published analyses by dealers or analysts of the situation at issue, transactions implicitly valuing the security (such as a merger, tender offer, etc.), the value of other securities or contracts which derive their value from the security at issue, and the implications (whether negative or positive) of the circumstances which have caused trading in the security to halt. Depending on the source and relative significance of the valuation inputs in these instances, the valuations for these securities may be classified as Level 2 or Level 3 in the fair value hierarchy.

In accordance with procedures adopted by the Board of Trustees, fair value pricing may be used if events materially affecting the value of foreign securities occur between the time the exchange on which they are traded closes and the time the Funds’ net asset values are calculated. The Funds use a systematic valuation model, provided daily by an independent third party to fair value their international equity securities. These valuations are considered as Level 2 in the fair value hierarchy.

Approximately 0.4% of the Strategic Income Fund’s June 30, 2015 net assets are being valued using estimates provided by the Fair Value Committee.

DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2015 | DIAMOND-HILL.COM 63

Diamond Hill Funds

Notes to Financial Statements (Continued)

June 30, 2015 (Unaudited)

Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The Trust determines transfers between fair value hierarchy levels at the reporting period end. There were no transfers between Levels 1, 2 or 3 as of June 30, 2015 based on input levels assigned at December 31, 2014.

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. For example, short-term debt securities of sufficient credit quality maturing in less than 61 days may be valued using amortized cost in accordance with rules under the 1940 Act. Generally, amortized cost approximates the current fair value of a security, but since the value is not obtained from a quoted price in an active market, such securities are reflected as Level 2.

The following is a summary of the inputs used to value the Funds’ investments as of June 30, 2015:

	Level 1 – Quoted Prices		Level 2 – Other Significant Observable Inputs
Investments in Securities: (Assets)
Small Cap Fund
Common Stocks*	$	1,287,520,556	$	—
Registered Investment Companies		457,147,696		—
Total		1,744,668,252		—
Small-Mid Cap Fund
Common Stocks*		937,809,126		—
Registered Investment Companies		230,868,971		—
Total		1,168,678,097		—
Mid Cap Fund
Common Stocks*		16,888,807		—
Registered Investment Companies		6,569,763		—
Total		23,458,570		—
Large Cap Fund
Common Stocks*		3,381,419,524		—
Registered Investment Companies		98,303,721		—
Total		3,479,723,245		—
Select Fund
Common Stocks*		124,211,442		—
Registered Investment Companies		42,677,141		—
Total		166,888,583		—

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Diamond Hill Funds

Notes to Financial Statements (Continued)

June 30, 2015 (Unaudited)

	Level 1 – Quoted Prices			Level 2 – Other Significant Observable Inputs
Long-Short Fund
Common Stocks*	$	3,411,150,132		$	—
Registered Investment Companies		1,437,821,798			—
Total		4,848,971,930			—
Research Opportunities Fund
Common Stocks*		83,113,470			721,337
Corporate Bond*		—			419,625
Registered Investment Company		5,488,519			—
Total		88,601,989			1,140,962
Financial Long-Short Fund
Common Stocks*		30,097,672			—
Registered Investment Companies		13,942,711			—
Total		44,040,383			—
Strategic Income Fund
Collateralized Debt Obligations		—			898,570
Corporate Bonds*		—			218,714,000
Registered Investment Companies		50,921,141			—
Total		50,921,141			219,612,570
Investments in Securities Sold Short: (Liabilities)
Long-Short Fund
Common Stocks*		(994,945,213	)		—
Research Opportunities Fund
Common Stocks*		(16,155,963	)		—
Financial Long-Short Fund
Common Stocks*		(3,883,079	)		—

* See Schedule of Investments and Schedule of Investments Sold Short for industry classification.

The Funds did not hold any Level 3 securities during the six months ended June 30, 2015.

Short sales — The Long-Short Fund, Research Opportunities Fund, Financial Long-Short Fund and Strategic Income Fund are permitted to make short sales of securities. Short sales are effective when it is believed that the price of a particular security will decline, and involves the sale of a security which the Fund does not own in hope of purchasing the same security at a later date at a lower price. To make delivery to the buyer, a Fund must borrow

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Diamond Hill Funds

Notes to Financial Statements (Continued)

June 30, 2015 (Unaudited)

the security, and the Fund is obligated to return the security to the lender, which is accomplished by a later purchase of the security by the Fund. Cash received from short sales is maintained by the custodian and is used as collateral. It is included as “Cash deposits with custodian for securities sold short” on the Statements of Assets & Liabilities and “Segregated Cash With Custodian” on the Schedules of Investments.

A Fund will incur a loss as a result of a short sale if the price of the security increases between the date of the short sale and the date on which the Fund purchases the security to replace the borrowed security. The use of short sales may cause a Fund to have higher expenses (especially dividend expenses) than those of other equity mutual funds. Short sales are speculative transactions and involve special risks, including greater reliance on the ability of the Funds’ investment advisor, Diamond Hill Capital Management, Inc. (“DHCM”) to accurately anticipate the future value of a security.

Securities lending — Under the terms of the securities lending agreement with State Street Bank and Trust Company (“State Street”), State Street is authorized to loan securities on behalf of the Funds to approved borrowers. In exchange, the Funds receive cash collateral in the amount of at least 100% of the value of the securities loaned. Any collateral shortfalls due to changes in security market prices are adjusted the next business day. The cash collateral is invested in short-term instruments as noted in each Fund’s Schedule of Investments. Although risk is mitigated by the collateral, the Funds could experience a delay in recovering their securities and possible loss of income or value if the borrower fails to return them. The agreement indemnifies the Funds from losses incurred in the event of a borrower’s material default of the terms and conditions of the borrower agreement. The agreement provides that after predetermined rebates to borrowers, the Funds each retain 85% of their respective net securities lending income and pay State Street the remaining 15%.

As of June 30, 2015, the fair value of securities loaned and the collateral held were as follows:

	Fair Value of Securities Loaned		Fair Value of Collateral Received
Small Cap Fund	$	150,498,265	$	154,208,481
Small-Mid Cap Fund		126,613,501		131,012,351
Mid Cap Fund		5,060,088		5,190,246
Large Cap Fund		66,635,303		71,748,039
Select Fund		36,208,586		36,603,983
Long-Short Fund		851,581,677		868,030,675
Financial Long-Short Fund		9,534,118		9,734,798
Strategic Income Fund		17,789,724		18,711,068

Security transactions — Throughout the reporting period, investment transactions are recorded no later than the first business day following trade date. For financial reporting purposes, investments are reported on trade date on the last business day of the reporting

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Diamond Hill Funds

Notes to Financial Statements (Continued)

June 30, 2015 (Unaudited)

period. The specific identification method is used for determining realized gains or losses for financial statements and income tax purposes. Dividend income is recognized on the ex-dividend date and interest income is recognized on an accrual basis. Discounts and premiums on securities purchased are amortized using the daily effective yield method. The Funds record distributions received from investments in Real Estate Investment Trusts (“REITS”) in excess of income from underlying investments as a reduction of cost of investments and/or realized gain. Such amounts are based on estimates if actual amounts are not available and actual amounts of income, realized gain and return of capital may differ from the estimated amounts. The Funds adjust the estimated amounts once the issuers provide information about the actual composition of the distributions.

Share valuation — The net asset value per share of each class of shares of each Fund is calculated daily by dividing the total value of a Fund’s assets attributable to that class, less liabilities attributable to that class, by the number of shares of that class outstanding.

Federal income taxes — Each Fund’s policy is to continue to comply with the requirements of the Internal Revenue Code that are applicable to regulated investment companies and to distribute substantially all of its taxable net investment income and any net realized capital gains to its shareholders. The Funds have analyzed their tax positions taken on Federal income tax returns for all open tax years (tax years ended December 31, 2011 through 2014) and have concluded that no provision for income tax is required in their financial statements.

Distributions to shareholders — Dividends from net investment income are declared and paid monthly for the Strategic Income Fund. Dividends from net investment income are declared and paid on an annual basis for the Small Cap Fund, Small-Mid Cap Fund, Mid Cap Fund, Large Cap Fund, Select Fund, Long-Short Fund, Research Opportunities Fund, and Financial Long-Short Fund. Dividends are declared separately for each class. No class has preferential dividend rights; differences in per share rates are due to differences in separate class expenses. Net realized capital gains, if any, are distributed at least annually. Distributions from net investment income and from net capital gains are determined in accordance with U.S. income tax regulations, which may differ from GAAP. These differences are primarily due to differing treatments for paydown gains and losses on mortgage-backed securities, expiring capital loss carry-forwards and deferrals of certain losses. Permanent book and tax basis differences are reclassified among the components of net assets. Certain Funds may utilize earnings and profits distributed to shareholders on redemption of shares as part of the dividends paid deduction for income tax purposes.

Allocations — Investment income earned, realized capital gains and losses, and unrealized appreciation and depreciation for the Funds are allocated daily to each class of shares based upon its proportionate share of total net assets of the Fund. Class specific expenses are charged directly to the class incurring the expense. Common expenses, which are not attributable to a specific class, are allocated daily to each class of shares based upon its proportionate share of total net assets of the Fund. Expenses not directly billed to a Fund are allocated proportionally among all Funds daily in relation to net assets of each Fund or another reasonable measure.

DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2015 | DIAMOND-HILL.COM 67

Diamond Hill Funds

Notes to Financial Statements (Continued)

June 30, 2015 (Unaudited)

Foreign securities country risk — Investing in non-U.S. securities may entail risk due to foreign economic and political developments; this risk may be higher when investing in emerging markets. Changes in currency exchange rates and differences in accounting and taxation policies outside the U.S. can raise or lower returns.

Foreign currency translation — The books and records of the Funds are maintained in U.S. dollars. Investment securities and other assets and liabilities denominated in a foreign currency are translated into U.S. dollars on the date of valuation. The Funds do not isolate that portion of realized or unrealized gains and losses resulting from changes in the foreign exchange rate from fluctuations arising from changes in the market prices of the securities. These gains and losses are included in net realized and unrealized gains and losses on investments in the Statements of Operations. Net realized and unrealized gains and losses on foreign currency transactions represent net foreign exchange gains or losses from foreign currency exchange contracts, disposition of foreign currencies, currency gains or losses realized between trade and settlement dates on securities transactions and the difference between the amount of the investment income and foreign withholding taxes recorded on the Funds’ books and the U.S. dollar equivalent amounts actually received or paid.

Investment Transactions

For the six months ended June 30, 2015, purchases and sales (including maturities) of investment securities (excluding short-term securities and U.S. government obligations) were as follows:

	Purchases		Sales
Small Cap Fund	$	171,595,661	$	78,985,209
Small-Mid Cap Fund		339,885,910		73,937,333
Mid Cap Fund		3,103,587		2,158,545
Large Cap Fund		427,705,340		298,144,130
Select Fund		76,433,838		15,029,833
Long-Short Fund		663,651,928		768,256,567
Research Opportunities Fund		38,047,517		35,750,652
Financial Long-Short Fund		7,245,653		4,722,920
Strategic Income Fund		73,404,617		62,280,815

68 DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2015 | DIAMOND-HILL.COM

Diamond Hill Funds

Notes to Financial Statements (Continued)

June 30, 2015 (Unaudited)

The Funds pay commissions on the purchase and sale of investment securities. The commissions are treated as transaction costs and, therefore, are included as part of the cost of purchases or net proceeds on the sale of investment securities and are not included in the presentation of Fund expenses on the Statements of Operations. The Funds paid the following commissions during the six months ended June 30, 2015:

	Total Commissions		Commissions as a % of Average Net Assets
Small Cap Fund	$	139,071		0.01	%
Small-Mid Cap Fund		246,648		0.03	%
Mid Cap Fund		2,152		0.01	%
Large Cap Fund		163,268		0.00	%
Select Fund		31,542		0.04	%
Long-Short Fund		498,571		0.01	%
Research Opportunities Fund		39,098		0.05	%
Financial Long-Short Fund		5,004		0.02	%

Investment Advisory Fees and Other Transactions with Affiliates

The Small Cap Fund, Small-Mid Cap Fund, Mid Cap Fund, Large Cap Fund, Select Fund, Long-Short Fund, Research Opportunities Fund, Financial Long-Short Fund and Strategic Income Fund each receive investment management and advisory services from DHCM under management agreements that provide for fees to be paid at an annual rate of 0.80%, 0.75%, 0.65%, 0.55%, 0.70%, 0.90%, 1.00%, 1.00% and 0.45% of the Fund’s average daily net assets, respectively. Prior to February 28, 2015, the annual rate for the Strategic Income Fund was 0.50% of the Fund’s average daily net assets. The advisory agreements are subject to annual approval by the Board of Trustees. In addition, each Fund entered into an administrative services agreement whereby DHCM is paid a fee at an annual rate of 0.24% for Class A Shares and Class C Shares, 0.21% for Class I Shares and 0.10% for Class Y shares of each class’ average daily net assets. Prior to July 1, 2015, the fees paid by Class I shares under the administrative services agreement was 0.24% of each class’ average daily net assets. These administrative fees are used to pay most of the Funds’ operating expenses except advisory fees, distribution fees, custody fees, brokerage fees, taxes, interest and dividend expense on securities sold short and extraordinary expenses.

Pursuant to Rule 12b-1 under the 1940 Act, the Trust has adopted a distribution plan on behalf of each Fund’s Class A and Class C Shares (the “Plan”). Under the Plan, Class A shares pay a distribution fee at an annual rate of 0.25% of Class A average daily net assets. Class C shares pay distribution and shareholder-servicing fees at an annual rate of 0.75% and 0.25%, respectively, of Class C’s average daily net assets. Class I and Class Y shares are

DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2015 | DIAMOND-HILL.COM 69

Diamond Hill Funds

Notes to Financial Statements (Continued)

June 30, 2015 (Unaudited)

not subject to any distribution or shareholder-servicing fees. The Trust entered into a Distribution Agreement on behalf of the Funds with BHIL Distributors, Inc. (“Distributor”), an affiliate of DHCM. Pursuant to the Distribution Agreement, the Distributor acts as principal underwriter of each Fund’s shares.

For the six months ended June 30, 2015, the Distributor retained the following amounts in sales commissions from the sales of Class A shares of the Funds as follows:

Small Cap Fund	$	9,730
Small-Mid Cap Fund		3,845
Large Cap Fund		13,576
Select Fund		5,612
Long-Short Fund		36,000
Research Opportunities Fund		65
Financial Long-Short Fund		267
Strategic Income Fund		529

DHCM, as the financing agent for Class C shares, received contingent deferred sales charges relating to the redemptions of Class C shares of the Funds for the six months ended June 30, 2015 as follows:

Small Cap Fund	$	338
Small-Mid Cap Fund		1,013
Large Cap Fund		1,808
Select Fund		403
Long-Short Fund		1,035
Strategic Income Fund		1,738

Certain Officers of the Trust are affiliated with DHCM or the Distributor. Such Officers receive no compensation from the Funds for serving in their respective roles.

Trustee Fees

The Independent Trustees are compensated for their services to the Funds by DHCM as part of the administration services agreement. Collectively, the Independent Trustees were paid $190,000 in fees during the six months ended June 30, 2015.

Commitments and Contingencies

The Funds indemnify the Trust’s Officers and Trustees for certain liabilities that might arise from their performance of their duties to the Funds. Additionally, in the normal course of business, the Funds enter into contracts that contain a variety of representations and warranties and which provide general indemnifications. The Funds’ maximum exposure

70 DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2015 | DIAMOND-HILL.COM

Diamond Hill Funds

Notes to Financial Statements (Continued)

June 30, 2015 (Unaudited)

under these arrangements is unknown, as this would involve future claims that may be made against the Funds that have not yet occurred. However, based on experience, the Funds expect the risk of loss to be remote.

Federal Tax Information

The amount and character of income and capital gain distributions paid by the Funds are determined in accordance with Federal income tax regulations which may differ from GAAP. The tax character of distributions paid may differ from the character of distributions shown on the Statements of Changes in Net Assets, as items such as short-term capital gains are treated as ordinary income for tax purposes.

The tax character of distributions paid during 2014 was as follows:

	Small Cap Fund		Small-Mid Cap Fund		Mid Cap Fund		Large Cap Fund		Select Fund
Distributions paid from:
Ordinary income	$	3,245,857	$	3,901,585	$	106,875	$	45,353,389	$	1,999,961
Long-term capital gains		64,648,041		20,435,261		—		90,999,684		5,683,388
Total distributions	$	67,893,898	$	24,336,846	$	106,875	$	136,353,073	$	7,683,349
			Long-Short Fund		Research Opportunities Fund		Financial Long-Short Fund		Strategic Income Fund
Distributions paid from:
Ordinary income			$	—	$	1,387,607	$	42,765	$	9,635,283
Long-term capital gains				—		4,560,615		—		—
Total distributions			$	—	$	5,948,222	$	42,765	$	9,635,283

The following information is computed on a tax basis for each item as of December 31, 2014:

	Small Cap Fund		Small-Mid Cap Fund		Mid Cap Fund			Large Cap Fund		Select Fund
Net unrealized appreciation on portfolio investments	$	337,338,082	$	73,145,428	$	896,761		$	858,629,594	$	11,034,106
Undistributed ordinary income		2,400,195		—		—			—		398,855
Undistributed capital gains		2,811,559		2,107,452		—			38,107,839		326,740
Capital loss carryforwards		—		—		(62,720	)		—		—
Accumulated earnings	$	342,549,836	$	75,252,880	$	834,041		$	896,737,433	$	11,759,701

DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2015 | DIAMOND-HILL.COM 71

Diamond Hill Funds

Notes to Financial Statements (Continued)

June 30, 2015 (Unaudited)

	Long-Short Fund			Research Opportunities Fund		Financial Long-Short Fund			Strategic Income Fund
Net unrealized appreciation (depreciation) on portfolio investments	$	707,939,802		$	9,047,195	$	5,253,087		$	(4,338,747	)
Undistributed ordinary income		—			8,631		19,196			685,734
Undistributed capital gains		—			1,016,805		—			—
Capital loss carryforwards		(118,576,181	)		—		(9,084,715	)		(11,474,175	)
Accumulated earnings (deficit)	$	589,363,621		$	10,072,631	$	(3,812,432	)	$	(15,127,188	)

As of June 30, 2015, the Funds’ federal tax cost of investment securities and net unrealized appreciation (depreciation) were as follows:

	Small Cap Fund			Small-Mid Cap Fund			Mid Cap Fund			Large Cap Fund			Select Fund
Tax cost of portfolio investments	$	1,386,190,986		$	1,061,859,859		$	21,896,764		$	2,668,193,013		$	156,459,018
Gross unrealized appreciation		405,882,669			123,724,384			2,047,187			839,663,788			12,183,746
Gross unrealized depreciation		(47,405,403	)		(16,906,146	)		(485,381	)		(28,133,556	)		(1,754,181	)
Net unrealized appreciation on portfolio investments	$	358,477,266		$	106,818,238		$	1,561,806		$	811,530,232		$	10,429,565
				Long-Short Fund			Research Opportunities Fund			Financial Long-Short Fund			Strategic Income Fund
Tax cost of long portfolio investments				$	3,990,451,540		$	80,666,248		$	38,895,517		$	272,897,299
Gross unrealized appreciation					879,992,586			11,916,973			5,789,940			2,554,454
Gross unrealized depreciation					(21,472,196	)		(2,840,270	)		(645,074	)		(4,918,042	)
Net unrealized appreciation on long portfolio investments				$	858,520,390		$	9,076,703		$	5,144,866		$	(2,363,588	)

The difference between book basis and tax basis net unrealized appreciation (depreciation) is attributable primarily to the tax deferral of losses on wash sales.

72 DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2015 | DIAMOND-HILL.COM

Diamond Hill Funds

Notes to Financial Statements (Continued)

June 30, 2015 (Unaudited)

As of the latest tax year ended December 31, 2014, the following Funds have capital loss carry forwards (“CLCFs”) as summarized in the tables below. CLCFs subject to expiration are applied as short-term capital loss regardless of whether the originating capital loss was short-term or long-term. CLCFs that are not subject to expiration must be utilized before those that are subject to expire. As of June 30, 2015, all CLCFs were subject to expiration.

CLCFs subject to expiration:

	Amount		Expires December 31,
Long-Short Fund	$	49,399,084		2017
		69,177,097		2018
	$	118,576,181
Financial Long-Short Fund	$	2,544,587		2016
		6,540,128		2017
	$	9,084,715
Strategic Income Fund	$	6,202,321		2016
		5,271,854		2017
	$	11,474,175

As of the latest tax year ended December 31, 2014, Long-Short Fund, Financial Long-Short Fund and Strategic Income Fund utilized $186,138,457, $1,751,815 and $2,971,654, respectively, of CLCFs.

The tax character of current year distributions paid and the tax basis of the current components of accumulated earnings (deficit) and any net CLCFs will be determined at the end of the current tax year.

Subsequent Events

The Funds evaluated events from June 30, 2015 through the date that these financial statements were issued. There were no subsequent events to report that would have a material impact on the Funds’ financial statements.

DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2015 | DIAMOND-HILL.COM 73

Diamond Hill Funds

Other Items

June 30, 2015 (Unaudited)

Proxy Voting

The investment adviser is responsible for exercising the voting rights associated with the securities purchased and held by the Funds. A description of the policies and procedures that the advisor uses in fulfilling this responsibility and information regarding how those proxies were voted during the twelve month period ended June 30 are available without charge upon request by calling toll free 1-888-226-5595 or on the Securities and Exchange Commission’s website at www.sec.gov.

Portfolio Disclosure

The Trust files a complete listing of portfolio holdings for each Fund as of the end of the first and third quarters of each fiscal year on Form N-Q and each second and fourth quarters of each fiscal year on Form N-CSR. The complete listing (i) is available on the Commission’s website; (ii) may be reviewed and copied at the Commission’s Public Reference Room in Washington, DC; and (iii) will be made available to shareholders upon request by calling 1-888-226-5595. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. Monthly portfolio holdings are also available on www.diamond-hill.com.

74 DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2015 | DIAMOND-HILL.COM

Diamond Hill Funds

Schedule of Shareholder Expenses

Hypothetical Example of a $1,000 Investment at Beginning of Period

(Unaudited)

As a Fund shareholder, you may incur two types of costs: (1) transaction costs, including wire redemption fees and sales charges (loads) as applicable; and (2) ongoing costs, including management fees; distribution and service (12b-1) fees; and other Fund expenses. These examples are intended to help you understand your ongoing costs (in dollars) of investing in a Fund and to compare these costs with the ongoing costs of investing in other mutual funds. Please note that the expenses shown in the tables are meant to highlight your ongoing costs only and do not reflect any transactional costs or other fees that may apply, such as fees for low balance accounts. Therefore, the examples are useful in comparing ongoing costs only and will not help you determine the relative total cost of owning different funds. In addition, if these transactional costs and other fees were included, your costs would have been higher.

These examples are based on an investment of $1,000 invested at January 1, 2015 and held for the entire period from January 1, 2015 through June 30, 2015.

The Actual Expense example below provides information about actual account values and actual expenses. You may use this information, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled “Expenses paid during the period” to estimate the expenses you paid on your account during this period.

The Hypothetical Expense example below provides information about hypothetical account values and hypothetical expenses based on each Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not each Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in this Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

	Account value at the beginning of the period ($)				Account value at the end of the period ($)				Expenses paid during the period ($)*				Funds annualized expense ratio (%)
	Actual		Hypothetical		Actual		Hypothetical		Actual		Hypothetical		Actual
Small Cap Fund
Class A		1,000.00		1,000.00		1,025.80		1,018.40		6.48		6.46		1.29
Class C		1,000.00		1,000.00		1,021.60		1,014.68		10.23		10.19		2.04
Class I		1,000.00		1,000.00		1,026.90		1,019.64		5.23		5.21		1.04
Class Y		1,000.00		1,000.00		1,027.50		1,020.33		4.52		4.51		0.90
Small-Mid Cap Fund
Class A		1,000.00		1,000.00		1,051.30		1,018.65		6.31		6.21		1.24
Class C		1,000.00		1,000.00		1,047.60		1,014.93		10.10		9.94		1.99
Class I		1,000.00		1,000.00		1,053.10		1,019.89		5.04		4.96		0.99
Class Y		1,000.00		1,000.00		1,053.50		1,020.58		4.33		4.26		0.85

DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2015 | DIAMOND-HILL.COM 75

Diamond Hill Funds

Schedule of Shareholder Expenses

Hypothetical Example of a $1,000 Investment at Beginning of Period

(Unaudited) (Continued)

	Account value at the beginning of the period ($)				Account value at the end of the period ($)				Expenses paid during the period ($)*				Funds annualized expense ratio (%)
	Actual		Hypothetical		Actual		Hypothetical		Actual		Hypothetical		Actual
Mid Cap Fund Class
Class A		1,000.00		1,000.00		1,044.90		1,019.14		5.78		5.71		1.14
Class C		1,000.00		1,000.00		1,040.30		1,015.42		9.56		9.44		1.89
Class I		1,000.00		1,000.00		1,045.70		1,020.38		4.51		4.46		0.89
Class Y		1,000.00		1,000.00		1,046.60		1,021.08		3.81		3.76		0.75
Large Cap Fund
Class A		1,000.00		1,000.00		1,017.60		1,019.64		5.20		5.21		1.04
Class C		1,000.00		1,000.00		1,013.80		1,015.92		8.94		8.95		1.79
Class I		1,000.00		1,000.00		1,018.80		1,020.88		3.95		3.96		0.79
Class Y		1,000.00		1,000.00		1,019.30		1,021.57		3.25		3.26		0.65
Select Fund
Class A		1,000.00		1,000.00		1,067.90		1,018.89		6.10		5.96		1.19
Class C		1,000.00		1,000.00		1,063.80		1,015.17		9.93		9.69		1.94
Class I		1,000.00		1,000.00		1,069.50		1,020.13		4.82		4.71		0.94
Class Y		1,000.00		1,000.00		1,070.20		1,020.83		4.11		4.01		0.80
Long-Short Fund
Class A		1,000.00		1,000.00		1,008.00		1,015.87		8.96		9.00		1.80
Class C		1,000.00		1,000.00		1,004.10		1,012.15		12.67		12.72		2.55
Class I		1,000.00		1,000.00		1,009.10		1,017.11		7.72		7.75		1.55
Class Y		1,000.00		1,000.00		1,009.90		1,017.80		7.03		7.05		1.41
Research Opportunities Fund
Class A		1,000.00		1,000.00		1,035.10		1,016.12		8.83		8.75		1.75
Class C		1,000.00		1,000.00		1,030.90		1,012.40		12.59		12.47		2.50
Class I		1,000.00		1,000.00		1,036.30		1,017.36		7.57		7.50		1.50
Class Y		1,000.00		1,000.00		1,037.10		1,018.05		6.87		6.80		1.36
Financial Long-Short Fund
Class A		1,000.00		1,000.00		1,006.10		1,016.07		8.75		8.80		1.76
Class C		1,000.00		1,000.00		1,002.70		1,012.35		12.46		12.52		2.51
Class I		1,000.00		1,000.00		1,007.70		1,017.31		7.52		7.55		1.51
Strategic Income Fund
Class A		1,000.00		1,000.00		1,037.30		1,020.08		4.80		4.76		0.95
Class C		1,000.00		1,000.00		1,033.80		1,016.36		8.57		8.50		1.70
Class I		1,000.00		1,000.00		1,038.80		1,021.32		3.54		3.51		0.70
Class Y		1,000.00		1,000.00		1,039.30		1,022.02		2.83		2.81		0.56

* Expenses are equal to the Fund’s annualized expense ratio, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year divided by the number of days in the fiscal year (to reflect the one-half year period).

You can find more information about the Fund’s expenses, including annual expense ratios for historical periods in the Financial Statements section of this report. For additional information on operating expenses and other shareholder costs, please refer to the Fund’s prospectus. The prospectus presents hypothetical shareholder costs over various time periods based upon a $10,000 investment and a return of 5% a year. The standardized example, which appears in all mutual fund prospectuses, may be useful to you in comparing the costs of investing in different funds.

76 DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2015 | DIAMOND-HILL.COM

NOTICE OF PRIVACY POLICY FOR DIAMOND HILL FUNDS

We value you as a shareholder and take your personal privacy seriously. In order to enhance our ability to provide you with the best service possible, Diamond Hill Funds (referred to as “we” or “us” or the “Funds”) collect, use and share certain information about you. This policy explains what information we collect and with whom we share it. The practices described in this policy are applicable to all customers, including prospective, current and former customers. The policy also explains how we protect the security and confidentiality of certain customer information.

SAFEGUARDING PRIVACY

Diamond Hill Funds maintain physical, electronic and procedural safeguards that comply with federal standards to ensure the safety of non-public personal customer information. In addition, we require service providers to the Funds to maintain policies and procedures designed to assure only appropriate access to, and use of, information about customers and to maintain physical, electronic and procedural safeguards that comply with federal standards to guard non-public personal customer information.

INFORMATION WE COLLECT AND SOURCES OF INFORMATION

We may collect information about our customers to help identify you, evaluate your application, service and manage your account and offer services and products you may find valuable. We collect this information from a variety of sources including:

• Information we receive from you on applications or other forms, such as your name, address, date of birth, social security number and investment information;

• Information about your transactions and experiences with us, such as your account balance, transaction history and investment selections; and

• Information you supply in written, telephonic or electronic communications with the Funds or service providers to the Funds.

INFORMATION WE SHARE

We may disclose all non-public personal information we collect, as described above, to companies that perform services on our behalf, including those that assist us in responding to inquiries, processing transactions, preparing and mailing account statements and other forms of shareholder services, provided they use the information solely for these purposes and they enter into a confidentiality agreement regarding the information. We also may disclose non-public personal information as otherwise permitted by law.

QUESTIONS?

Questions regarding this policy may be directed to: 888-226-5595

DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2015 | DIAMOND-HILL.COM 77

INVESTMENT ADVISER: DIAMOND HILL CAPITAL MANAGEMENT, INC.

DISTRIBUTOR: BHIL DISTRIBUTORS, INC. (MEMBER FINRA), AN AFFILIATE OF THE DIAMOND HILL FUNDS

DIAMOND-HILL.COM | 855.255.8955 | 325 JOHN H. MCCONNELL BLVD | SUITE 200 | COLUMBUS, OHIO | 43215

DH-SAR063015

Item 2. Code of Ethics.

Not applicable.

Item 3. Audit Committee Financial Expert.

Not applicable.

Item 4. Principal Accountant Fees and Services.

Not applicable.

Item 5. Audit Committee of Listed Registrants.

Not applicable.

Item 6. Schedule of Investments.

(a) Not applicable.

(b) Not applicable.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable.

Item 8. Portfolio Managers of Closed-End Management Investment Companies.

Not applicable.

Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

Not applicable.

Item 10. Submission of Matters to a Vote of Security Holders.

Not applicable.

Item 11. Controls and Procedures.

(a)The registrant’s principal executive officer and principal financial officer have concluded, based on their evaluation of the registrant’s disclosure controls and procedures as conducted within 90 days of the filing date of this report, that these disclosure controls and procedures are adequately designed and are operating effectively to ensure that information required to be disclosed by the registrant on Form N-CSR is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms.

(b)There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Act (17 CFR 270.30a-3(d))) that occurred during the second fiscal quarter of the period covered by this report that have materially affected or are reasonably likely to be materially affected, the registrant’s internal control over financial reporting.

Item 12. Exhibits.

(a)(1)	Not applicable.
(a)(2)	Certifications required by Item 12(a) of Form N-CSR are filed herewith.
(a)(3)	Not applicable.
(b)	Certification required by Item 12(b) of Form N-CSR is furnished herewith.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Registrant	Diamond Hill Funds
By (Signature and Title)	/s/ Thomas E. Line
	Thomas E. Line, Chief Executive Officer

Date August 28, 2015

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By (Signature and Title)	/s/ Thomas E. Line
	Thomas E. Line, Chief Executive Officer

Date August 28, 2015

By (Signature and Title)	/s/ Trent M. Statczar
	Trent M. Statczar, Treasurer

Date August 28, 2015