Diamond Hill All Cap Select Fund (DHTYX) 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, 2018

Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.

A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.

Item 1. Reports to Stockholders.

Table of Contents

Letter to Shareholders	1
Financial Statements
Schedules of Investments	3
Statements of Assets & Liabilities	58
Statements of Operations	61
Statements of Changes in Net Assets	64
Financial Highlights	78
Notes to Financial Statements	104

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 Foreside Financial Services, LLC (Member FINRA). 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 2018 mid-year update for the Diamond Hill Funds. At Diamond Hill we believe in true active management – managing high-conviction, concentrated portfolios constructed independent of benchmark weights. We have intentionally structured our firm to maximize the potential to generate returns for our clients in excess of a passive alternative. Our long-term investment horizon also allows us to focus on company fundamentals rather than short-term market noise.

2018 Year-to-Date Market Review

U.S. equity markets declined during the first quarter on investor concerns about interest rates and market volatility before rebounding in the second quarter to finish the first half of 2018 on a positive note, despite the increasing rhetoric around tariffs, trade wars, and the potential for an inverted yield curve. Although market volatility receded in the second quarter, it was still notably higher than 2017 levels.

Growth continues to vastly outperform Value, with the Russell 1000 Growth Index outperforming the Russell 1000 Value Index by approximately 900 basis points during the first six months.

The yield curve continued to flatten with a 33 bps spread between the 2-year and 10-year Treasury at the end of the second quarter. Over the past year, this spread has averaged 65 bps, and over the past five years has averaged 138 bps. The flattening of the curve is much more apparent in the spread between the 2-year and 30-year Treasury. At the end of June, the 2-year and 30-year spread was 46 bps, with an average spread of 101 bps over the past year. For the five-year period ending June 2018 this spread has averaged 207 bps.

Market Outlook

Corporate tax reform has already started to benefit U.S. companies. Repatriation of cash held overseas ticked up dramatically in the first quarter, and we are already seeing that cash being utilized for share repurchases and acquisitions. Lower tax rates have also started to boost earnings growth. However, we believe that for many companies this benefit will largely be competed away over time. Our research team continues to evaluate the impact of tax reform on a company-by-company basis and update our estimates of intrinsic value accordingly.

Assessing the impact of macroeconomic factors has been more important in recent years; however, it is still just one of many factors that we consider. As always, bottom-up analysis is of primary importance in estimating the intrinsic value of an individual company, which includes both valuation and business fundamentals.

The size of recently implemented tariffs is small relative to the total economy, and thus far it is not affecting how we are positioning our portfolios. Broadly speaking, we think cooler heads will prevail but we view the impacts on individual companies as very difficult to forecast.

DIAMOND HILL FUNDS | SEMI- ANNUAL REPORT | JUNE 30, 2018 | DIAMOND-HILL.COM 1

Letter to Shareholders

Low interest rates, high corporate profit margins, and steady economic growth with low inflation have continued to contribute to historically high stock valuations. High valuations make it more challenging to find new investment opportunities for the equity portfolios. In this environment where the discount to our estimate of intrinsic value is likely to be narrower, we have focused on maintaining or upgrading the quality of the businesses we own. When evaluating new and current positions with a smaller discount to our estimate of intrinsic value, we remain focused on assessing risk, which we define as permanent loss of capital.

At current valuation levels, we’ve historically seen annual stock market returns of 5% or less. We continue to expect positive but below-average equity market returns over the next five years. Prospective returns are likely to be tempered by the combination of above-average price/earnings multiples applied to already very strong levels of corporate profit margins.

We believe we can achieve better-than-market returns over the next five years through active portfolio management, and our primary focus is always on achieving value-added results for our existing clients. Our intrinsic value investment philosophy is shared by all of our portfolio managers and research analysts, allowing us to apply our investment discipline consistently across strategies.

Thank you for your continued support.

Diamond Hill Capital Management, Inc.

Chris Welch, CFA Co-Chief Investment Officer	Austin Hawley, CFA Co-Chief Investment Officer	Bill Zox, CFA Chief Investment Officer – Fixed Income

The views expressed are those of the portfolio manager as of June 30, 2018, 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.

The Russell 1000 Index is an unmanaged market-capitalization weighted index measuring the performance of the 1,000 largest companies, on a market capitalization basis, in the Russell 3000 Index. The Russell 1000 Value Index is an unmanaged market-capitalization weighted index measuring the performance of the large cap value segment of the U.S. equity universe including those Russell 1000 Index companies with lower expected growth values. The Russell 1000 Growth Index is a subset of the Russell 1000 Index and measures the performance of the large cap growth segment of the U.S. equity universe. It includes those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values. These indexes do not incur fees and expenses (which would lower the return) and are not available for direct investment.

2 DIAMOND HILL FUNDS | SEMI- ANNUAL REPORT | JUNE 30, 2018 | DIAMOND-HILL.COM

Diamond Hill Small Cap Fund
Schedule of Investments
June 30, 2018 (Unaudited)

	Shares		Fair Value
Common Stocks — 84.3%
Consumer Discretionary — 14.2%
Aaron's, Inc.		388,269	$	16,870,288
Callaway Golf Co.		145,652		2,763,018
Carter's, Inc.		113,641		12,317,548
Horizon Global Corp. (a)(b)		521,089		3,105,690
Live Nation Entertainment, Inc. (b)		1,043,945		50,704,409
Red Rock Resorts, Inc., Class A		1,164,230		39,001,705
Tenneco, Inc.		515,880		22,678,085
Vail Resorts, Inc.		213,385		58,508,033
				205,948,776
Consumer Staples — 5.3%
B&G Foods, Inc. (a)		702,270		20,997,873
Cal-Maine Foods, Inc. (b)		293,568		13,460,093
Edgewell Personal Care Co. (a)(b)		80,295		4,051,686
Flowers Foods, Inc. (a)		748,285		15,586,777
Post Holdings, Inc. (a)(b)		262,200		22,554,444
				76,650,873
Energy — 3.9%
Carrizo Oil & Gas, Inc. (a)(b)		141,776		3,948,462
Cimarex Energy Co.		367,320		37,371,137
Linn Energy, Inc. (a)(b)		279,583		10,805,883
Noble Energy, Inc.		146,965		5,184,925
				57,310,407
Financials — 24.7%
Alleghany Corp.		21,048		12,101,969
Assured Guaranty Ltd.		143,776		5,137,116
Bank of the Ozarks, Inc. (a)		618,875		27,874,130
BankUnited, Inc.		875,700		35,772,345
BOK Financial Corp.		142,765		13,421,338
Brighthouse Financial, Inc. (b)		269,645		10,804,675
Brown & Brown, Inc.		1,017,410		28,212,779
Enstar Group Ltd. (b)		158,152		32,784,910
First Horizon National Corp.		732,955		13,075,917
First of Long Island Corp. (The)		386,550		9,605,767
Nationstar Mortgage Holdings, Inc. (b)		1,378,000		24,156,340
Navigators Group, Inc. (The)		583,847		33,279,279
Popular, Inc.		610,765		27,612,686
ProAssurance Corp.		567,010		20,100,504
Reinsurance Group of America, Inc.		79,045		10,550,927
State Bank Financial Corp.		360,015		12,024,501
Sterling Bancorp		690,447		16,225,504
Validus Holdings Ltd.		394,280		26,653,328
				359,394,015
Health Care — 3.4%
BioScrip, Inc. (a)(b)		3,538,927		10,369,056
Integer Holdings Corp. (b)		90,206		5,831,818
LifePoint Health, Inc. (b)		322,800		15,752,640
Natus Medical, Inc. (b)		498,080		17,183,760
				49,137,274
Industrials — 17.7%
Aircastle Ltd.		1,296,840		26,585,220
Alaska Air Group, Inc.		313,125		18,909,619
Allegiant Travel Co. (a)		124,593		17,312,197
Avis Budget Group, Inc. (b)		1,208,034		39,261,105
Colfax Corp. (b)		282,415		8,656,020
Hillenbrand, Inc.		82,055		3,868,893
Hub Group, Inc., Class A (b)		647,500		32,245,500
Hyster-Yale Materials Handling, Inc.		212,695		13,665,654
Kirby Corp. (b)		150,195		12,556,302
SPX FLOW, Inc. (b)		403,880		17,677,828
Stericycle, Inc. (b)		177,580		11,594,198
Toro Co. (The)		198,000		11,929,500
TriMas Corp. (b)		262,160		7,707,504
Trinity Industries, Inc.		1,043,140		35,737,976
				257,707,516
Information Technology — 5.2%
Anixter International, Inc. (b)		747		47,285
Broadridge Financial Solutions, Inc.		188,930		21,745,843
CommScope Holding Co., Inc. (b)		640,190		18,696,749
Sanmina Corp. (b)		562,862		16,491,857
TiVo Corp.		442,955		5,957,745

DIAMOND HILL FUNDS | SEMI- ANNUAL REPORT | JUNE 30, 2018 | DIAMOND-HILL.COM 3

Diamond Hill Small Cap Fund
Schedule of Investments (Continued)
June 30, 2018 (Unaudited)

	Shares		Fair Value
Common Stocks — 84.3% continued
Information Technology — 5.2% continued
WNS Holdings Ltd. - ADR (b)		243,818	$	12,722,423
				75,661,902
Materials — 0.5%
Versum Materials, Inc.		219,376		8,149,818
Real Estate — 6.6%
American Campus Communities, Inc. REIT		216,810		9,296,813
CubeSmart REIT		511,415		16,477,791
iStar, Inc. REIT (a)(b)		3,092,060		33,363,327
Jones Lang LaSalle, Inc.		63,862		10,600,453
Mid-America Apartment Communities, Inc. REIT		116,331		11,711,042
Tanger Factory Outlet Centers, Inc. REIT (a)		461,700		10,845,333
Winthrop Realty Trust REIT (c)		1,975,475		3,081,741
				95,376,500
Telecommunication Services — 0.6%
Cincinnati Bell, Inc. (a)(b)		542,804		8,522,023
Utilities — 2.2%
Fortis, Inc. (a)		184,156		5,870,893
UGI Corp.		497,222		25,890,350
				31,761,243
Total Common Stocks			$	1,225,620,347
Registered Investment Companies — 23.5%
Diamond Hill Short Duration Total Return Fund, Class Y (d)		5,210,361		52,520,434
State Street Institutional Liquid Reserves Fund, Premier Class, 2.08% (e)		175,500,163		175,517,713
State Street Navigator Securities Lending Portfolio I, 2.06% (e)		113,652,595		113,652,595
Total Registered Investment Companies			$	341,690,742
Total Investment Securities — 107.8%
(Cost $1,185,165,816)			$	1,567,311,089
Net Other Assets (Liabilities) — (7.8)%				(113,887,796	)
Net Assets — 100.0%			$	1,453,423,293

^(a)  All or a portion of the security is on loan. The total fair value of the securities on loan as of June 30, 2018 was $109,305,683.

^(b)  Non-income producing security.

^(c)  Restricted and illiquid security 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. This security was first acquired on March 17, 2011 with a total cost on June 30, 2018 of $20,011,748 and represents 0.2% of net assets.

^(d)  Affiliated Fund.

^(e)  The rate shown is the effective interest rate as of June 30, 2018.

ADR – American Depositary Receipt

REIT – Real Estate Investment Trust

See accompanying Notes to Financial Statements.

4 DIAMOND HILL FUNDS | SEMI- ANNUAL REPORT | JUNE 30, 2018 | DIAMOND-HILL.COM

Diamond Hill Small-Mid Cap Fund
Schedule of Investments
June 30, 2018 (Unaudited)

	Shares		Fair Value
Common Stocks — 91.7%
Consumer Discretionary — 13.3%
Aaron's, Inc.		963,813	$	41,877,675
BorgWarner, Inc.		1,405,338		60,654,388
Goodyear Tire & Rubber Co. (The)		746,097		17,376,599
Hanesbrands, Inc. (a)		1,438,446		31,674,581
Liberty Media Corp. - Liberty Formula One, Series C (a)(b)		685,687		25,459,558
NVR, Inc. (b)		18,235		54,164,332
Red Rock Resorts, Inc., Class A		1,984,092		66,467,082
TEGNA, Inc.		2,538,119		27,538,591
Vail Resorts, Inc.		19,687		5,397,979
				330,610,785
Consumer Staples — 7.7%
B&G Foods, Inc. (a)		1,243,370		37,176,763
Coty, Inc., Class A (a)		1,098,889		15,494,335
Flowers Foods, Inc.		1,919,070		39,974,228
Molson Coors Brewing Co., Class B		400,178		27,228,111
Post Holdings, Inc. (a)(b)		832,336		71,597,543
				191,470,980
Energy — 3.6%
Cimarex Energy Co.		889,905		90,538,935
Financials — 27.4%
Bank of the Ozarks, Inc. (a)		939,153		42,299,451
BankUnited, Inc.		2,162,328		88,331,099
BOK Financial Corp.		356,763		33,539,290
Brighthouse Financial, Inc. (b)		730,242		29,260,797
Brown & Brown, Inc.		1,413,210		39,188,313
Cadence Bancorp (a)		639,334		18,457,573
Enstar Group Ltd. (b)		78,920		16,360,116
First Horizon National Corp.		748,496		13,353,169
First Republic Bank		423,550		40,995,404
Nationstar Mortgage Holdings, Inc. (b)		2,589,619		45,396,021
Navigators Group, Inc. (The)		437,474		24,936,018
Popular, Inc.		715,658		32,354,898
ProAssurance Corp.		324,717		11,511,218
Reinsurance Group of America, Inc.		255,753		34,137,910
Sterling Bancorp		1,022,594		24,030,959
SVB Financial Group (b)		139,370		40,244,481
Validus Holdings Ltd.		295,620		19,983,912
Willis Towers Watson plc		616,835		93,512,186
XL Group Ltd.		596,147		33,354,425
				681,247,240
Health Care — 5.1%
Boston Scientific Corp. (b)		2,065,208		67,532,302
LifePoint Health, Inc. (b)		847,539		41,359,903
Orthofix International NV (b)		303,454		17,242,256
				126,134,461
Industrials — 11.0%
Aircastle Ltd.		742,035		15,211,717
Alaska Air Group, Inc.		207,009		12,501,273
Allegiant Travel Co. (a)		213,756		29,701,396
Avis Budget Group, Inc. (a)(b)		326,046		10,596,495
Colfax Corp. (b)		1,249,435		38,295,183
Hub Group, Inc., Class A (b)		1,284,362		63,961,228
Kirby Corp. (b)		799,314		66,822,650
Parker-Hannifin Corp.		97,920		15,260,832
SPX FLOW, Inc. (b)		502,851		22,009,788
				274,360,562
Information Technology — 8.5%
Avnet, Inc.		688,180		29,516,040
Broadridge Financial Solutions, Inc.		165,670		19,068,617
CommScope Holding Co., Inc. (b)		549,821		16,057,522
Juniper Networks, Inc.		1,419,507		38,922,882
Keysight Technologies, Inc. (b)		296,060		17,476,422
Sanmina Corp. (b)		1,107,159		32,439,759
Worldpay, Inc., Class A (b)		717,825		58,703,728
				212,184,970
Materials — 3.3%
Axalta Coating Systems Ltd. (b)		2,140,629		64,882,465
RPM International, Inc.		298,360		17,400,355
				82,282,820

DIAMOND HILL FUNDS | SEMI- ANNUAL REPORT | JUNE 30, 2018 | DIAMOND-HILL.COM 5

Diamond Hill Small-Mid Cap Fund
Schedule of Investments (Continued)
June 30, 2018 (Unaudited)

	Shares		Fair Value
Common Stocks — 91.7% continued
Real Estate — 8.6%
American Campus Communities, Inc. REIT		1,328,648	$	56,972,426
CubeSmart REIT		1,929,372		62,164,366
iStar, Inc. REIT (a)(b)		2,125,926		22,938,742
Jones Lang LaSalle, Inc.		148,077		24,579,301
Mid-America Apartment Communities, Inc. REIT		456,122		45,917,802
				212,572,637
Utilities — 3.2%
Fortis, Inc. (a)		366,412		11,681,215
UGI Corp.		1,282,829		66,796,906
				78,478,121
Total Common Stocks			$	2,279,881,511
Registered Investment Companies — 15.6%
Diamond Hill Short Duration Total Return Fund, Class Y (c)		4,761,113		47,992,021
State Street Institutional Liquid Reserves Fund, Premier Class, 2.08% (d)		102,855,716		102,866,002
State Street Institutional US Government Money Market Fund, Premier Class, 1.82% (d)		47,972,572		47,972,572
State Street Navigator Securities Lending Portfolio I, 2.06% (d)		188,757,519		188,757,519
Total Registered Investment Companies			$	387,588,114
Total Investment Securities — 107.3%
(Cost $2,205,238,416)			$	2,667,469,625
Net Other Assets (Liabilities) — (7.3)%				(181,480,525	)
Net Assets — 100.0%			$	2,485,989,100

^(a)  All or a portion of the security is on loan. The total fair value of the securities on loan as of June 30, 2018 was $181,810,228.

^(b)  Non-income producing security.

^(c)  Affiliated Fund.

^(d)  The rate shown is the effective interest rate as of June 30, 2018.

NV – Naamloze Vennootschap

plc – Public Limited Company

REIT – Real Estate Investment Trust

See accompanying Notes to Financial Statements.

6 DIAMOND HILL FUNDS | SEMI- ANNUAL REPORT | JUNE 30, 2018 | DIAMOND-HILL.COM

Diamond Hill Mid Cap Fund
Schedule of Investments
June 30, 2018 (Unaudited)

	Shares		Fair Value
Common Stocks — 91.7%
Consumer Discretionary — 16.0%
Aaron's, Inc.		25,885	$	1,124,703
BorgWarner, Inc.		71,533		3,087,364
Dollar General Corp.		26,702		2,632,817
Goodyear Tire & Rubber Co. (The)		33,215		773,577
Hanesbrands, Inc. (a)		59,406		1,308,120
Liberty Media Corp. - Liberty Formula One, Series C (b)		33,738		1,252,692
NVR, Inc. (b)		927		2,753,514
Red Rock Resorts, Inc., Class A		93,799		3,142,267
TEGNA, Inc.		58,166		631,101
Vail Resorts, Inc.		979		268,432
VF Corp.		33,572		2,736,789
				19,711,376
Consumer Staples — 8.0%
B&G Foods, Inc. (a)		32,293		965,561
Coty, Inc., Class A		65,588		924,791
Flowers Foods, Inc.		71,932		1,498,344
Molson Coors Brewing Co., Class B		44,881		3,053,703
Post Holdings, Inc. (b)		39,470		3,395,209
				9,837,608
Energy — 4.0%
Cimarex Energy Co.		47,827		4,865,919
Financials — 28.2%
Bank of the Ozarks, Inc. (a)		39,489		1,778,585
BankUnited, Inc.		107,690		4,399,136
BOK Financial Corp.		15,510		1,458,095
Brighthouse Financial, Inc. (b)		28,410		1,138,389
Brown & Brown, Inc.		21,164		586,878
Discover Financial Services		39,777		2,800,699
Enstar Group Ltd. (b)		4,081		845,991
First Republic Bank		21,419		2,073,145
Franklin Resources, Inc.		35,974		1,152,967
Hartford Financial Services Group, Inc. (The)		23,591		1,206,208
Loews Corp.		112,697		5,441,011
Nationstar Mortgage Holdings, Inc. (b)		91,516		1,604,275
Popular, Inc.		27,355		1,236,720
Reinsurance Group of America, Inc.		5,953		794,606
SVB Financial Group (b)		7,033		2,030,849
Validus Holdings Ltd.		18,193		1,229,847
Willis Towers Watson plc		24,109		3,654,924
XL Group Ltd.		21,690		1,213,556
				34,645,881
Health Care — 4.6%
Boston Scientific Corp. (b)		106,747		3,490,627
LifePoint Health, Inc. (b)		45,476		2,219,229
				5,709,856
Industrials — 11.9%
Alaska Air Group, Inc.		10,229		617,729
Avis Budget Group, Inc. (b)		16,007		520,227
Colfax Corp. (b)		50,044		1,533,849
Deere & Co.		8,992		1,257,082
Fastenal Co. (a)		33,656		1,619,863
Hub Group, Inc., Class A (b)		34,526		1,719,395
Kirby Corp. (b)		36,112		3,018,963
Parker-Hannifin Corp.		6,745		1,051,208
United Continental Holdings, Inc. (b)		29,401		2,050,132
Verisk Analytics, Inc. (b)		11,780		1,267,999
				14,656,447
Information Technology — 6.0%
Avnet, Inc.		32,273		1,384,189
CommScope Holding Co., Inc. (b)		26,490		773,640
Juniper Networks, Inc.		72,818		1,996,670
Keysight Technologies, Inc. (b)		12,074		712,728
Worldpay, Inc., Class A (b)		30,092		2,460,924
				7,328,151
Materials — 3.4%
Axalta Coating Systems Ltd. (b)		108,170		3,278,633
RPM International, Inc.		14,693		856,896
				4,135,529
Real Estate — 7.2%
American Campus Communities, Inc. REIT		57,053		2,446,433

DIAMOND HILL FUNDS | SEMI- ANNUAL REPORT | JUNE 30, 2018 | DIAMOND-HILL.COM 7

Diamond Hill Mid Cap Fund
Schedule of Investments (Continued)
June 30, 2018 (Unaudited)

	Shares		Fair Value
Common Stocks — 91.7% continued
Real Estate — 7.2% continued
CubeSmart REIT		95,502	$	3,077,074
Jones Lang LaSalle, Inc.		7,025		1,166,080
Mid-America Apartment Communities, Inc. REIT		21,363		2,150,613
				8,840,200
Utilities — 2.4%
UGI Corp.		57,169		2,976,790
Total Common Stocks			$	112,707,757
Registered Investment Companies — 12.1%
Diamond Hill Short Duration Total Return Fund, Class Y (c)		217,948		2,196,911
State Street Institutional Liquid Reserves Fund, Premier Class, 2.08% (d)		5,826,186		5,826,769
State Street Institutional US Government Money Market Fund, Premier Class, 1.82% (d)		2,151,036		2,151,036
State Street Navigator Securities Lending Portfolio I, 2.06% (d)		4,726,716		4,726,716
Total Registered Investment Companies			$	14,901,432
Total Investment Securities — 103.8%
(Cost $112,866,649)			$	127,609,189
Net Other Assets (Liabilities) — (3.8)%				(4,748,065	)
Net Assets — 100.0%			$	122,861,124

^(a)   All or a portion of the security is on loan. The total fair value of the securities on loan as of June 30, 2018 was $4,535,346.

^(b)   Non-income producing security.

^(c)   Affiliated Fund.

^(d)   The rate shown is the effective interest rate as of June 30, 2018.

plc – Public Limited Company

REIT – Real Estate Investment Trust

See accompanying Notes to Financial Statements.

Diamond Hill Large Cap Fund
Schedule of Investments
June 30, 2018 (Unaudited)

	Shares		Fair Value
Common Stocks — 98.6%
Consumer Discretionary — 16.0%
BorgWarner, Inc.		2,362,802	$	101,978,534
Charter Communications, Inc., Class A (a)		335,030		98,234,146
Comcast Corp., Class A		3,277,510		107,535,103
Goodyear Tire & Rubber Co. (The)		3,055,309		71,158,147
Hanesbrands, Inc. (b)		2,891,491		63,670,632
TEGNA, Inc.		2,170,362		23,548,428
TJX Cos., Inc. (The)		1,812,501		172,513,845
Twenty-First Century Fox, Inc., Class B		2,002,036		98,640,314
VF Corp.		1,577,325		128,583,534
Walt Disney Co. (The)		869,916		91,175,896
				957,038,579
Consumer Staples — 9.2%
Kimberly-Clark Corp.		795,676		83,816,510
Molson Coors Brewing Co., Class B		1,108,339		75,411,386
PepsiCo, Inc.		1,233,302		134,269,589
Philip Morris International, Inc.		1,737,433		140,280,340
Procter & Gamble Co. (The)		1,531,062		119,514,700
				553,292,525
Energy — 5.4%
Cimarex Energy Co.		1,329,855		135,299,448
Devon Energy Corp.		4,257,600		187,164,096
				322,463,544
Financials — 27.0%
Berkshire Hathaway, Inc., Class B (a)		924,054		172,474,679
Brighthouse Financial, Inc. (a)		1,667,842		66,830,429
Citigroup, Inc.		3,758,132		251,494,193
Discover Financial Services		2,957,445		208,233,703
First Republic Bank		860,022		83,241,529
Franklin Resources, Inc.		1,351,443		43,313,748
Hartford Financial Services Group, Inc. (The)		1,408,428		72,012,924
JPMorgan Chase & Co.		1,523,812		158,781,210
Loews Corp.		2,146,705		103,642,917
Marsh & McLennan Cos., Inc.		1,198,987		98,280,964

8 DIAMOND HILL FUNDS | SEMI- ANNUAL REPORT | JUNE 30, 2018 | DIAMOND-HILL.COM

Diamond Hill Large Cap Fund
Schedule of Investments (Continued)
June 30, 2018 (Unaudited)

	Shares		Fair Value
Common Stocks — 98.6% continued
Financials — 27.0% continued
MetLife, Inc.		3,849,215	$	167,825,774
Morgan Stanley		2,066,568		97,955,323
PNC Financial Services Group, Inc. (The)		681,371		92,053,222
				1,616,140,615
Health Care — 14.9%
Abbott Laboratories		4,257,443		259,661,449
Aetna, Inc.		878,016		161,115,936
Gilead Sciences, Inc.		790,649		56,009,575
Medtronic plc		1,680,521		143,869,403
Pfizer, Inc.		3,931,539		142,636,235
Thermo Fisher Scientific, Inc.		617,387		127,885,543
				891,178,141
Industrials — 8.8%
Honeywell International, Inc.		463,355		66,746,288
Parker-Hannifin Corp.		680,573		106,067,302
United Continental Holdings, Inc. (a)		1,376,563		95,987,738
United Technologies Corp.		1,400,921		175,157,153
Verisk Analytics, Inc. (a)		756,675		81,448,497
				525,406,978
Information Technology — 13.5%
Alphabet, Inc., Class A (a)		180,037		203,295,980
Apple, Inc.		629,427		116,513,232
Facebook, Inc., Class A (a)		641,728		124,700,585
Microsoft Corp.		1,856,036		183,023,710
Texas Instruments, Inc.		712,446		78,547,172
Worldpay, Inc., Class A (a)		1,252,798		102,453,820
				808,534,499
Materials — 3.8%
Axalta Coating Systems Ltd. (a)		2,465,582		74,731,790
Eastman Chemical Co.		631,139		63,088,654
Praxair, Inc.		558,456		88,319,816
				226,140,260
Total Common Stocks			$	5,900,195,141
Registered Investment Companies — 2.5%
State Street Institutional Liquid Reserves Fund, Premier Class, 2.08% (c)		84,653,609		84,662,075
State Street Navigator Securities Lending Portfolio I, 2.06% (c)		65,781,420		65,781,420
Total Registered Investment Companies			$	150,443,495
Total Investment Securities — 101.1%
(Cost $4,778,922,935)			$	6,050,638,636
Net Other Assets (Liabilities) — (1.1)%				(63,926,785	)
Net Assets — 100.0%			$	5,986,711,851

^(a)  Non-income producing security.

^(b)  All or a portion of the security is on loan. The total fair value of the securities on loan as of June 30, 2018 was $63,670,632.

^(c)   The rate shown is the effective interest rate as of June 30, 2018.

plc – Public Limited Company

See accompanying Notes to Financial Statements.

DIAMOND HILL FUNDS | SEMI- ANNUAL REPORT | JUNE 30, 2018 | DIAMOND-HILL.COM 9

Diamond Hill All Cap Select Fund
Schedule of Investments
June 30, 2018 (Unaudited)

	Shares		Fair Value
Common Stocks — 96.4%
Consumer Discretionary — 15.8%
BorgWarner, Inc.		134,470	$	5,803,725
Dollar General Corp.		31,539		3,109,745
Liberty Global plc, Class A (a)		216,556		5,963,952
Red Rock Resorts, Inc., Class A		162,093		5,430,116
TJX Cos., Inc. (The)		34,365		3,270,861
Twenty-First Century Fox, Inc., Class B		124,795		6,148,650
Vail Resorts, Inc.		15,421		4,228,284
				33,955,333
Consumer Staples — 10.3%
Molson Coors Brewing Co., Class B		47,020		3,199,241
PepsiCo, Inc.		29,213		3,180,419
Philip Morris International, Inc.		104,559		8,442,094
Post Holdings, Inc. (a)		84,160		7,239,443
				22,061,197
Energy — 3.4%
Cimarex Energy Co.		71,192		7,243,074
Financials — 31.8%
Bank of the Ozarks, Inc. (b)		105,928		4,770,997
BankUnited, Inc.		98,344		4,017,353
Berkshire Hathaway, Inc., Class B (a)		58,865		10,987,152
Brighthouse Financial, Inc. (a)		179,720		7,201,380
Discover Financial Services		136,801		9,632,159
First Republic Bank		55,039		5,327,225
Loews Corp.		161,708		7,807,262
MetLife, Inc.		256,351		11,176,904
Nationstar Mortgage Holdings, Inc. (a)		244,416		4,284,613
ProAssurance Corp.		90,363		3,203,368
				68,408,413
Health Care — 7.7%
Abbott Laboratories		98,962		6,035,692
Aetna, Inc.		26,596		4,880,366
Gilead Sciences, Inc.		80,543		5,705,666
				16,621,724
Industrials — 15.9%
Hub Group, Inc., Class A (a)		102,915		5,125,167
Johnson Controls International plc		288,367		9,645,876
Kirby Corp. (a)		53,240		4,450,864
United Continental Holdings, Inc. (a)		135,332		9,436,700
Verisk Analytics, Inc. (a)		51,493		5,542,707
				34,201,314
Information Technology — 8.5%
Alphabet, Inc., Class A (a)		7,524		8,496,026
Facebook, Inc., Class A (a)		28,569		5,551,528
Sanmina Corp. (a)		144,640		4,237,952
				18,285,506
Materials — 1.8%
Axalta Coating Systems Ltd. (a)		123,969		3,757,500
Real Estate — 1.2%
CubeSmart REIT		83,188		2,680,317
Total Common Stocks			$	207,214,378

10 DIAMOND HILL FUNDS | SEMI- ANNUAL REPORT | JUNE 30, 2018 | DIAMOND-HILL.COM

Diamond Hill All Cap Select Fund
Schedule of Investments (Continued)
June 30, 2018 (Unaudited)

	Shares		Fair Value
Registered Investment Companies — 5.8%
Diamond Hill Short Duration Total Return Fund, Class Y (c)		285,535		2,878,198
State Street Institutional US Government Money Market Fund, Premier Class, 1.82% (d)		6,303,584		6,303,584
State Street Navigator Securities Lending Portfolio I, 2.06% (d)		3,426,431		3,426,431
Total Registered Investment Companies			$	12,608,213
Total Investment Securities — 102.2%
(Cost $194,734,522)			$	219,822,591
Net Other Assets (Liabilities) — (2.2)%				(4,769,152	)
Net Assets — 100.0%			$	215,053,439

^(a)   Non-income producing security.

^(b)   All or a portion of the security is on loan. The total fair value of the securities on loan as of June 30, 2018 was $3,336,788.

^(c)   Affiliated Fund.

^(d)   The rate shown is the effective interest rate as of June 30, 2018.

plc – Public Limited Company

REIT – Real Estate Investment Trust

See accompanying Notes to Financial Statements.

Diamond Hill Long-Short Fund
Schedule of Investments
June 30, 2018 (Unaudited)

	Shares		Fair Value
Common Stocks — 84.8%
Consumer Discretionary — 13.3%
BorgWarner, Inc. (a)		1,719,990	$	74,234,768
Comcast Corp., Class A		2,324,620		76,270,782
Dollar General Corp. (a)		567,615		55,966,839
Goodyear Tire & Rubber Co. (The) (a)		1,933,560		45,032,612
Hanesbrands, Inc. (a)		1,844,330		40,612,147
Starbucks Corp. (a)		369,190		18,034,931
TEGNA, Inc. (a)		1,362,458		14,782,669
TJX Cos., Inc. (The) (a)		539,482		51,347,897
Twenty-First Century Fox, Inc., Class B (a)		1,292,985		63,705,371
VF Corp. (a)		552,435		45,034,501
Walt Disney Co. (The) (a)		512,145		53,677,917
				538,700,434
Consumer Staples — 6.9%
Constellation Brands, Inc., Class A (a)		73,815		16,155,889
Coty, Inc., Class A (a)		3,308,420		46,648,722
Kimberly-Clark Corp. (a)		477,170		50,265,088
Molson Coors Brewing Co., Class B (a)		1,132,020		77,022,641
Philip Morris International, Inc. (a)		1,079,400		87,150,756
				277,243,096
Energy — 4.1%
Cimarex Energy Co. (a)		1,117,354		113,679,596
Devon Energy Corp. (a)		1,237,475		54,399,401
				168,078,997
Financials — 23.3%
BankUnited, Inc.		1,848,390		75,506,732
Berkshire Hathaway, Inc., Class B (a)(b)		512,095		95,582,532
Brighthouse Financial, Inc. (a)(b)		1,407,136		56,383,940
Citigroup, Inc. (a)		2,488,034		166,499,235
Discover Financial Services (a)		1,695,400		119,373,114
First Republic Bank (a)		604,810		58,539,560
Franklin Resources, Inc. (a)		1,184,010		37,947,521
Hartford Financial Services Group, Inc. (The) (a)		295,927		15,130,748
JPMorgan Chase & Co.		586,815		61,146,123
Loews Corp. (a)		1,444,877		69,758,662
MetLife, Inc. (a)		2,646,974		115,408,066

DIAMOND HILL FUNDS | SEMI- ANNUAL REPORT | JUNE 30, 2018 | DIAMOND-HILL.COM 11

Diamond Hill Long-Short Fund
Schedule of Investments (Continued)
June 30, 2018 (Unaudited)

	Shares		Fair Value
Common Stocks — 84.8% continued
Financials — 23.3% continued
Morgan Stanley		684,313	$	32,436,436
Popular, Inc. (a)		495,247		22,390,117
Wells Fargo & Co.		309,272		17,146,040
				943,248,826
Health Care — 6.4%
Abbott Laboratories (a)		1,987,060		121,190,789
Medtronic plc (a)		987,862		84,570,866
Pfizer, Inc. (a)		1,459,865		52,963,902
				258,725,557
Industrials — 11.6%
Alaska Air Group, Inc.		339,010		20,472,814
Colfax Corp. (a)(b)		633,190		19,407,273
Johnson Controls International plc (a)		2,843,620		95,119,089
Kirby Corp. (a)(b)		499,935		41,794,566
Parker-Hannifin Corp. (a)		220,800		34,411,680
United Continental Holdings, Inc. (a)(b)		2,216,490		154,555,848
United Technologies Corp. (a)		824,535		103,091,611
				468,852,881
Information Technology — 14.5%
Alphabet, Inc., Class A (b)		100,935		113,974,793
Apple, Inc.		489,946		90,693,904
Cognizant Technology Solutions Corp., Class A (a)		1,025,005		80,965,145
Facebook, Inc., Class A (b)		368,915		71,687,563
Juniper Networks, Inc. (a)		1,486,530		40,760,653
Microsoft Corp.		1,104,074		108,872,737
Worldpay, Inc., Class A (a)(b)		977,005		79,899,469
				586,854,264
Materials — 2.8%
Axalta Coating Systems Ltd. (a)(b)		2,500,684		75,795,732
RPM International, Inc. (a)		652,430		38,049,718
				113,845,450
Telecommunication Services — 1.9%
T-Mobile USA, Inc. (b)		1,270,330		75,902,217
Total Common Stocks			$	3,431,451,722
Registered Investment Companies — 34.1%
Diamond Hill Short Duration Total Return Fund, Class Y (c)		8,908,921		89,801,926
State Street Institutional Liquid Reserves Fund, Premier Class, 2.08% (d)		345,298,000		345,332,530
State Street Navigator Securities Lending Portfolio I, 2.06% (d)		946,140,560		946,140,560
Total Registered Investment Companies			$	1,381,275,016
Total Investment Securities — 118.9%
(Cost $3,957,446,855)			$	4,812,726,738
Segregated Cash With Custodian — 26.5%				1,070,527,296
Securities Sold Short — (21.1)%
(Proceeds $707,650,526)				(852,313,587	)
Net Other Assets (Liabilities) — (24.3)%				(984,435,692	)
Net Assets — 100.0%			$	4,046,504,755

^(a)  All or a portion of the security is on loan. The total fair value of the securities on loan as of June 30, 2018 was $925,279,024.

^(b)  Non-income producing security.

^(c)  Affiliated Fund

^(d)  The rate shown is the effective interest rate as of June 30, 2018.

plc – Public Limited Company

See accompanying Notes to Financial Statements.

12 DIAMOND HILL FUNDS | SEMI- ANNUAL REPORT | JUNE 30, 2018 | DIAMOND-HILL.COM

Diamond Hill Long-Short Fund
Schedule of Investments Sold Short
June 30, 2018 (Unaudited)

	Shares		Fair Value
Common Stocks — 20.9%
Consumer Discretionary — 8.2%
Best Buy Co., Inc.		1,279,215	$	95,403,855
Big Lots, Inc.		244,285		10,206,227
Children's Place, Inc. (The)		189,880		22,937,504
Grand Canyon Education, Inc.		590,785		65,937,514
Lithia Motors, Inc., Class A		116,710		11,037,265
lululemon athletica, Inc.		90,485		11,297,052
McDonald's Corp.		205,825		32,250,719
Polaris Industries, Inc.		211,895		25,889,331
Under Armour, Inc., Class A		1,248,985		28,077,183
Walmart, Inc.		355,730		30,468,275
				333,504,925
Energy — 1.0%
Core Laboratories NV		323,690		40,852,915
Financials — 2.8%
Bank of Hawaii Corp.		559,866		46,704,022
Cincinnati Financial Corp.		390,146		26,085,162
First American Financial Corp.		296,380		15,328,774
Selective Insurance Group, Inc.		431,096		23,710,280
				111,828,238
Health Care — 2.2%
AbbVie, Inc.		109,185		10,115,990
Encompass Health Corp.		425,726		28,830,165
Varian Medical Systems, Inc.		433,080		49,249,858
				88,196,013
Industrials — 1.9%
Cintas Corp.		81,590		15,099,861
W.W. Grainger, Inc.		195,183		60,194,437
				75,294,298
Information Technology — 2.9%
Cree, Inc.		761,620		31,660,543
j2 Global, Inc.		186,835		16,181,779
Stamps.com, Inc.		202,394		51,215,802
Western Union Co. (The)		875,315		17,795,154
				116,853,278
Materials — 0.2%
Silgan Holdings, Inc.		301,250		8,082,538
Utilities — 1.7%
Consolidated Edison, Inc.		910,077		70,967,804
Total Common Stocks			$	845,580,009
Registered Investment Companies — 0.2%
Industrials — 0.2%
Industrial Select Sector SPDR Fund (The)		94,005	$	6,733,578
Total Securities Sold Short — 21.1%
(Proceeds $707,650,526)			$	852,313,587

Percentages disclosed are based on total net assets of the Fund at June 30, 2018.

NV – Naamloze Vennootschap

SPDR – Standard & Poor’s Depositary Receipt

See accompanying Notes to Financial Statements.

DIAMOND HILL FUNDS | SEMI- ANNUAL REPORT | JUNE 30, 2018 | DIAMOND-HILL.COM 13

Diamond Hill Research Opportunities Fund
Schedule of Investments
June 30, 2018 (Unaudited)

	Shares		Fair Value
Common Stocks — 107.9%
Consumer Discretionary — 24.1%
Aptiv plc (a)		3,150	$	288,635
BorgWarner, Inc.		5,200		224,432
Charter Communications, Inc., Class A (a)(b)		3,262		956,451
Delphi Technologies plc		3,760		170,930
Dollar General Corp.		2,022		199,369
Fiat Chrysler Automobiles NV		51,158		966,375
Hanesbrands, Inc.		26,900		592,338
Liberty Global plc, Class A (b)		25,525		702,959
NVR, Inc. (b)		600		1,782,210
Red Rock Resorts, Inc., Class A		106,543		3,569,190
Starbucks Corp.		4,800		234,480
TJX Cos., Inc. (The)		1,626		154,763
Vail Resorts, Inc.		14,600		4,003,174
VF Corp.		13,679		1,115,112
				14,960,418
Consumer Staples — 1.0%
Cal-Maine Foods, Inc. (b)		13,700		628,145
Energy — 1.2%
Cimarex Energy Co.		7,598		773,021
Financials — 18.1%
Atlas Financial Holdings, Inc. (b)		20,845		182,394
Bank of New York Mellon Corp. (The)		16,380		883,373
Bank of the Ozarks, Inc. (a)		21,905		986,601
BankUnited, Inc. (c)		27,450		1,121,332
Berkshire Hathaway, Inc., Class B (b)(c)		1,700		317,305
Brighthouse Financial, Inc. (b)(c)		8,795		352,416
Credit Suisse Group (SW) (b)		53,460		799,343
Discover Financial Services (c)		15,357		1,081,286
Fairfax Financial Holdings Ltd.		586		328,368
Fairfax India Holdings Corp. (b)		21,889		360,950
First Republic Bank		6,552		634,168
Franklin Resources, Inc. (c)		9,000		288,450
Julius Baer Group Ltd. (SW) (b)		7,247		424,442
MetLife, Inc. (c)		29,066		1,267,278
Nationstar Mortgage Holdings, Inc. (b)(c)		54,705		958,979
Popular, Inc.		11,580		523,532
SVB Financial Group (a)(b)		2,545		734,894
				11,245,111
Health Care — 15.8%
Acorda Therapeutics, Inc. (a)(b)		13,774		395,314
Aetna, Inc. (c)		3,335		611,973
Allergan plc (a)		8,960		1,493,811
BioScrip, Inc. (a)(b)		403,216		1,181,423
Endo International plc (a)(b)		172,736		1,628,900
Gilead Sciences, Inc.		8,147		577,133
GlaxoSmithKline plc - ADR (a)		54,521		2,197,742
McKesson Corp. (a)		2,125		283,475
Medtronic plc		8,925		764,069
Shandong Weigo Group Medical Polymer Co. Ltd. (HK)		448,000		316,297
Thermo Fisher Scientific, Inc. (a)		1,927		399,159
				9,849,296
Industrials — 21.5%
Aircastle Ltd.		20,500		420,250
Alaska Air Group, Inc.		6,000		362,340
Colfax Corp. (b)		8,173		250,502
Honeywell International, Inc.		2,500		360,125
Howden Joinery Group plc (GB)		115,000		811,024
Hub Group, Inc., Class A (b)(c)		47,240		2,352,552
Johnson Controls International plc (a)		17,606		588,921
Kirby Corp. (b)		4,950		413,820
Sensata Technologies Holding plc (a)(b)		28,756		1,368,210
Stericycle, Inc. (a)(b)		4,470		291,846
United Continental Holdings, Inc. (b)(c)		48,466		3,379,534
United Technologies Corp.		3,550		443,857

14 DIAMOND HILL FUNDS | SEMI- ANNUAL REPORT | JUNE 30, 2018 | DIAMOND-HILL.COM

Diamond Hill Research Opportunities Fund
Schedule of Investments (Continued)
June 30, 2018 (Unaudited)

	Shares		Fair Value
Common Stocks — 107.9% continued
Industrials — 21.5% continued
Verisk Analytics, Inc. (a)(b)		18,276	$	1,967,229
Welbilt, Inc. (a)(b)		9,400		209,714
WESCO International, Inc. (b)		2,483		141,779
				13,361,703
Information Technology — 14.7%
Alphabet, Inc., Class A (b)(c)		788		889,802
Baidu, Inc. - ADR (b)		2,394		581,742
Check Point Software Technologies Ltd. (b)		2,529		247,033
Cognizant Technology Solutions Corp., Class A (c)		28,162		2,224,516
Facebook, Inc., Class A (b)		4,038		784,664
First Data Corp., Class A (a)(b)		34,825		728,887
Juniper Networks, Inc. (c)		18,419		505,049
Microsoft Corp. (c)		9,434		930,287
Sanmina Corp. (b)		31,990		937,307
Texas Instruments, Inc. (a)		5,232		576,828
WNS Holdings Ltd. - ADR (b)		14,379		750,296
				9,156,411
Materials — 4.0%
Axalta Coating Systems Ltd. (a)(b)		51,482		1,560,419
RPM International, Inc. (a)		6,500		379,080
Versum Materials, Inc.		7,000		260,050
W.R. Grace & Co. (a)		3,700		271,247
				2,470,796
Real Estate — 3.5%
American Campus Communities, Inc. REIT (c)		8,577		367,782
CubeSmart REIT (a)		7,122		229,471
iStar, Inc. REIT (a)(b)(c)		106,007		1,143,816
Mid-America Apartment Communities, Inc. REIT		2,035		204,863
Public Storage REIT		956		216,878
				2,162,810
Telecommunication Services — 4.0%
BT Group plc - ADR		56,784		821,097
Cincinnati Bell, Inc. (a)(b)(c)		40,601		637,436
T-Mobile USA, Inc. (b)		17,337		1,035,886
				2,494,419
Total Common Stocks			$	67,102,130

	Coupon			Maturity	Shares / Par Value		Fair Value
Corporate Bonds — 1.9%
Energy — 1.1%
Welltec A/S (d)		9.500	%	12/01/22	$	700,000	$	703,500
Telecommunication Services — 0.8%
Frontier Communications Corp. (d)		8.500	%	04/01/26		500,000		482,500
Total Corporate Bonds							$	1,186,000

DIAMOND HILL FUNDS | SEMI- ANNUAL REPORT | JUNE 30, 2018 | DIAMOND-HILL.COM 15

Diamond Hill Research Opportunities Fund
Schedule of Investments (Continued)
June 30, 2018 (Unaudited)

	Shares		Fair Value
Registered Investment Companies — 28.1%
State Street Institutional Liquid Reserves Fund, Premier Class, 2.08% (e)		6,731	$	6,731
State Street Navigator Securities Lending Portfolio I, 2.06% (e)		17,450,120		17,450,120
Total Registered Investment Companies			$	17,456,851
Total Investment Securities — 137.9%
(Cost $74,239,159)			$	85,744,981
Segregated Cash With Custodian — 11.6%				7,211,211
Securities Sold Short — (21.4)%
(Proceeds $10,491,430)				(13,302,926	)
Net Other Assets (Liabilities) — (28.1)%				(17,452,250	)
Net Assets — 100.0%			$	62,201,016

^(a)  All or a portion of the security is on loan. The total fair value of the securities on loan as of June 30, 2018 was $17,004,662.

^(b)  Non-income producing security.

^(c)  All or a portion of the shares have been pledged as collateral for open short positions.

^(d)  Restricted securities not registered under the Securities Act of 1933. The total fair value of these securities as of June 30, 2018 was $1,186,000, representing 1.9% of net assets.

^(e)  The rate shown is the effective interest rate as of June 30, 2018.

ADR – American Depositary Receipt

A/S – Aktieselskab

GB – British Security

HK – Hong Kong Security

NV – Naamloze Vennootschap

plc – Public Limited Company

REIT – Real Estate Investment Trust

SW – Swiss Security

See accompanying Notes to Financial Statements.

16 DIAMOND HILL FUNDS | SEMI- ANNUAL REPORT | JUNE 30, 2018 | DIAMOND-HILL.COM

Diamond Hill Research Opportunities Fund
Schedule of Investments Sold Short
June 30, 2018 (Unaudited)

	Shares		Fair Value
Common Stocks — 21.4%
Consumer Discretionary — 6.7%
Bed Bath & Beyond, Inc.		3,295	$	65,653
Best Buy Co., Inc.		14,575		1,087,004
Big Lots, Inc.		4,200		175,476
Children's Place, Inc. (The)		1,023		123,578
Grand Canyon Education, Inc.		9,076		1,012,972
Lithia Motors, Inc., Class A		1,312		124,076
lululemon athletica, Inc.		3,000		374,550
Polaris Industries, Inc.		2,840		346,991
Tesla, Inc.		975		334,376
Under Armour, Inc., Class A		5,700		128,136
Walmart, Inc.		4,700		402,555
				4,175,367
Consumer Staples — 0.2%
Brown-Forman Corp., Class B		2,800		137,228
Energy — 0.3%
Core Laboratories NV		1,487		187,674
Financials — 3.4%
Apollo Commercial Real Estate Finance, Inc.		1,340		24,495
Ares Commercial Real Estate Corp.		1,945		26,860
Bank of Hawaii Corp.		5,290		441,292
Blackstone Mortgage Trust, Inc., Class A		765		24,044
Cincinnati Financial Corp.		8,504		568,577
First American Financial Corp.		4,746		245,463
Granite Point Mortgage Trust, Inc.		1,445		26,516
KKR Real Estate Finance Trust, Inc.		1,205		23,835
Selective Insurance Group, Inc.		2,455		135,025
Starwood Property Trust, Inc.		1,150		24,967
TPG Real Estate Finance Trust, Inc.		1,205		24,486
Westamerica Bancorp.		9,615		543,344
				2,108,904
Health Care — 2.2%
AbbVie, Inc.		2,901		268,778
Encompass Health Corp.		5,805		393,115
IDEXX Laboratories, Inc.		550		119,867
Merck & Co., Inc.		3,901		236,791
Varian Medical Systems, Inc.		3,005		341,729
				1,360,280
Industrials — 1.5%
Boeing Co. (The)		770		258,343
Cintas Corp.		1,170		216,532
W.W. Grainger, Inc.		1,433		441,937
				916,812
Information Technology — 4.9%
Cree, Inc.		20,402		848,111
j2 Global, Inc.		1,590		137,710
NETGEAR, Inc.		6,825		426,563
Stamps.com, Inc.		3,405		861,635
Western Union Co. (The)		37,764		767,742
				3,041,761
Materials — 0.2%
Silgan Holdings, Inc.		5,205		139,650
Real Estate — 0.3%
EastGroup Properties, Inc.		2,070		197,809
Telecommunication Services — 1.1%
Cogent Communications Holdings, Inc.		12,871		687,311
Utilities — 0.6%
Consolidated Edison, Inc.		4,490		350,130
Total Securities Sold Short — 21.4%
(Proceeds $10,491,430)			$	13,302,926

Percentages disclosed are based on total net assets of the Fund at June 30, 2018.

NV – Naamloze Vennootschap

See accompanying Notes to Financial Statements.

DIAMOND HILL FUNDS | SEMI- ANNUAL REPORT | JUNE 30, 2018 | DIAMOND-HILL.COM 17

Diamond Hill Financial Long-Short Fund
Schedule of Investments
June 30, 2018 (Unaudited)

	Shares		Fair Value
Common Stocks — 99.7%
Banks, Thrifts & Mortgage Finance — 39.0%
Banco Bilbao Vizcaya Argentaria SA - ADR (a)		117,845	$	824,915
Bank of the Ozarks, Inc. (a)(b)		20,695		932,103
BankUnited, Inc. (a)		29,920		1,222,232
BOK Financial Corp. (a)(b)		4,200		394,842
Bridge Bancorp, Inc.(a)		15,605		561,000
Citigroup, Inc. (a)		12,425		831,481
First Horizon National Corp. (a)(b)		17,045		304,083
First of Long Island Corp. (The) (a)		16,860		418,971
First Republic Bank (a)(b)		11,205		1,084,532
JPMorgan Chase & Co. (a)		5,365		559,033
Nationstar Mortgage Holdings, Inc. (a)(c)		93,470		1,638,529
Popular, Inc. (b)		17,270		780,777
State Bank Financial Corp. (a)		16,465		549,931
Sterling Bancorp (a)(b)		32,648		767,228
SVB Financial Group (a)(b)(c)		4,175		1,205,573
				12,075,230
Capital Markets — 9.2%
Bank of New York Mellon Corp. (The) (a)		14,490		781,446
Credit Suisse Group AG - ADR (a)		64,720		963,034
Franklin Resources, Inc. (a)(b)		19,414		622,219
Morgan Stanley (a)		10,145		480,873
				2,847,572
Consumer Financial Services — 7.2%
Capital One Financial Corp. (a)(b)		6,755		620,785
Discover Financial Services (a)(b)		23,055		1,623,303
				2,244,088
Diversified Financial Services — 5.7%
Berkshire Hathaway, Inc., Class B (a)(b)(c)		9,450		1,763,843
Insurance — 20.5%
Atlas Financial Holdings, Inc. (c)		41,214		360,622
Brighthouse Financial, Inc. (a)(b)(c)		21,537		862,988
Enstar Group Ltd. (b)(c)		3,045		631,228
Fairfax Financial Holdings Ltd. (CA) (a)		1,195		669,207
Global Indemnity Ltd. (b)		8,330		324,703
Hartford Financial Services Group, Inc. (The) (a)(b)		8,267		422,692
Loews Corp. (a)(b)		25,966		1,253,638
MetLife, Inc. (a)(b)		32,447		1,414,689
Willis Towers Watson plc (a)(b)		2,633		399,163
				6,338,930
IT Services — 3.8%
First Data Corp., Class A (a)(b)(c)		33,965		710,887
Worldpay, Inc., Class A (a)(b)(c)		5,755		470,644
				1,181,531
Equity Real Estate Investment Trusts (REITs) — 14.3%
American Campus Communities, Inc. REIT (a)		20,110		862,317
CubeSmart REIT (a)(b)		25,135		809,850
Essex Property Trust, Inc. REIT (a)		800		191,256
iStar, Inc. REIT (a)(b)(c)		116,663		1,258,794
Mid-America Apartment Communities, Inc. REIT (a)		5,445		548,148
Public Storage REIT (a)		2,490		564,881
Tanger Factory Outlet Centers, Inc. REIT (a)(b)		7,885		185,219
				4,420,465
Total Common Stocks			$	30,871,659

18 DIAMOND HILL FUNDS | SEMI- ANNUAL REPORT | JUNE 30, 2018 | DIAMOND-HILL.COM

Diamond Hill Financial
Long-Short Fund
Schedule of Investments (Continued)
June 30, 2018 (Unaudited)

	Shares		Fair Value
Registered Investment Companies — 28.7%
State Street Navigator Securities Lending Portfolio I, 2.06% (d)		8,881,126	$	8,881,126
Total Investment Securities — 128.4%
(Cost $35,880,461)			$	39,752,785
Segregated Cash With Custodian — 13.1%				4,065,808
Securities Sold Short — (13.6)%
(Proceeds $3,306,248)				(4,214,345	)
Net Other Assets (Liabilities) — (27.9)%				(8,638,359	)
Net Assets — 100.0%			$	30,965,889

^(a)  All or a portion of the shares have been pledged as collateral for open short positions.

^(b)  All or a portion of the security is on loan. The total fair value of the securities on loan as of June 30, 2018 was $8,649,719.

^(c)  Non-income producing security.

^(d)  The rate shown is the effective interest rate as of June 30, 2018.

ADR – American Depositary Receipt

AG – Aktiengesellschaft

CA – Canadian Security

plc – Public Limited Company

REIT – Real Estate Investment Trust

SA – Societe Anonyme

See accompanying Notes to Financial Statements.

Diamond Hill Financial
Long-Short Fund
Schedule of Investments Sold Short
June 30, 2018 (Unaudited)

	Shares		Fair Value
Common Stocks — 13.6%
Banks, Thrifts & Mortgage Finance — 3.2%
Bank of Hawaii Corp.		3,200	$	266,944
Westamerica Bancorp.		12,895		728,696
				995,640
Equity Real Estate Investment Trusts (REITs) — 2.9%
Apollo Commercial Real Estate Finance, Inc.		5,590		102,185
Ares Commercial Real Estate Corp.		8,102		111,889
Blackstone Mortgage Trust, Inc., Class A		3,192		100,325
EastGroup Properties, Inc.		1,730		165,319
Granite Point Mortgage Trust, Inc.		5,997		110,045
KKR Real Estate Finance Trust, Inc.		5,015		99,197
Starwood Property Trust, Inc.		4,791		104,013
TPG Real Estate Finance Trust, Inc.		5,020		102,006
				894,979
Insurance — 5.9%
Cincinnati Financial Corp.		9,960		665,926
First American Financial Corp.		5,155		266,617
Hanover Insurance Group, Inc. (The)		1,710		204,448
Selective Insurance Group, Inc.		12,325		677,875
				1,814,866
IT Services — 1.6%
Western Union Co. (The)		25,030		508,860
Total Securities Sold Short — 13.6%
(Proceeds $3,306,248)			$	4,214,345

Percentages disclosed are based on total net assets of the Fund at June 30, 2018.

See accompanying Notes to Financial Statements.

DIAMOND HILL FUNDS | SEMI- ANNUAL REPORT | JUNE 30, 2018 | DIAMOND-HILL.COM 19

Diamond Hill Global Fund
Schedule of Investments
June 30, 2018 (Unaudited)

	Shares		Fair Value
Common Stocks — 99.1%
Belgium — 2.1%
Anheuser-Busch InBev SA/NV		3,042	$	306,799
Bermuda — 1.5%
Axalta Coating Systems Ltd. (a)		6,998		212,109
China — 2.2%
Baidu, Inc. - ADR (a)		1,310		318,330
France — 6.5%
Essilor International SA		2,096		295,497
Sanofi SA		3,643		292,355
SCOR SE		9,755		360,713
				948,565
Germany — 3.8%
Bayer AG		2,649		290,893
Fuchs Petrolub SE		5,646		265,948
				556,841
Hong Kong — 1.7%
Shandong Weigao Group Medical Polymer Co. Ltd.		344,280		243,068
Ireland — 2.9%
Johnson Controls International plc		12,602		421,537
Japan — 1.8%
Seven & i Holdings Co. Ltd.		6,000		261,706
Jersey — 1.3%
Beazley plc		24,815		191,237
Korea (Republic of) — 2.0%
Samsung Electronics Co. Ltd.		6,940		290,904
Netherlands — 2.0%
Euronext NV		4,540		287,659
Switzerland — 4.9%
Credit Suisse Group AG		23,595		352,796
Julius Baer Group Ltd.		6,129		358,963
				711,759
United Kingdom — 12.0%
Aptiv plc		4,143		379,623
Ashmore Group plc		62,285		305,389
BT Group plc - ADR (b)		13,167		190,395
GlaxoSmithKline plc		19,810		399,414
Howden Joinery Group plc		66,859		471,515
				1,746,336
United States — 54.4%
Alphabet, Inc. - Class C (a)		300		334,695
BankUnited, Inc.		7,633		311,808
Berkshire Hathaway, Inc. - Class B (a)		2,861		534,006
BorgWarner, Inc.		6,660		287,446
Brighthouse Financial, Inc. (a)		8,144		326,330
Cimarex Energy Co.		3,435		349,477
Citigroup, Inc.		3,066		205,177
Discover Financial Services		5,392		379,651
Facebook, Inc. - Class A (a)		1,610		312,855
First Republic Bank		2,798		270,818
Gilead Sciences, Inc.		4,500		318,780
Hub Group, Inc. - Class A (a)		5,952		296,410
Kirby Corp. (a)		2,946		246,286
Liberty Global plc - Class A (a)		15,493		426,677
MetLife, Inc.		12,650		551,540
Philip Morris International, Inc.		6,081		490,980
Post Holdings, Inc. (a)(b)		4,332		372,639
Red Rock Resorts, Inc. - Class A		8,106		271,551
Sanmina Corp. (a)		10,981		321,743
Twenty-First Century Fox, Inc. - Class B		6,917		340,801
United Continental Holdings, Inc. (a)		8,217		572,971
Vail Resorts, Inc.		1,458		399,769
				7,922,410
Total Common Stocks			$	14,419,260

20 DIAMOND HILL FUNDS | SEMI- ANNUAL REPORT | JUNE 30, 2018 | DIAMOND-HILL.COM

Diamond Hill Global Fund
Schedule of Investments (Continued)
June 30, 2018 (Unaudited)

	Par Value		Value
Registered Investment Companies — 5.7%
State Street Institutional Liquid Reserves Fund, Premier Class, 2.08%(c)		311,695	$	311,726
State Street Navigator Securities Lending Portfolio I, 2.06% (c)		524,887		524,887
Total Registered Investment Companies			$	836,613
Total Investments at Value — 104.8%
(Cost $15,805,215)			$	15,255,873
Liabilities in Excess of Other Assets — (4.8)%				(701,241	)
Net Assets — 100.0%			$	14,554,632

^(a)  Non-income producing security.

^(b)  All or a portion of the security is on loan. The total fair value of the securities on loan as of June 30, 2018 was $512,423.

^(c)  The rate shown is the effective interest rate as of June 30, 2018.

ADR – American Depositary Receipt

AG – Aktiengesellschaft

NV – Naamloze Vennootschap

plc – Public Limited Company

SA – Societe Anonyme

SE – Societas Europaea

See accompanying Notes to Financial Statements.

Diamond Hill Short Duration
Total Return Fund
Schedule of Investments
June 30, 2018 (Unaudited)

	Coupon			Maturity	Shares / Par Value		Fair Value
Corporate Credit — 7.7%
Banking — 4.3%
ABN AMRO Bank NV (a)		2.100	%	01/18/19	$	500,000	$	498,180
Bank of Montreal		1.350	%	08/28/18		425,000		424,286
Bank of Nova Scotia		1.650	%	06/14/19		35,000		34,622
Canadian Imperial Bank		1.600	%	09/06/19		425,000		418,737
Capital One Financial Corp.		2.500	%	05/12/20		500,000		492,891
Capital One North America		1.850	%	09/13/19		500,000		492,935
Citigroup, Inc. (b)		2.350	%	08/02/21		500,000		482,940
Citigroup, Inc.		2.900	%	12/08/21		750,000		734,653
Danske Bank A/S (a)		1.650	%	09/06/19		500,000		492,319
DBS Group Holdings Ltd. (3MO LIBOR + 49) (a)(c)		2.811	%	06/08/20		1,500,000		1,500,660
Fifth Third Bank (3MO LIBOR + 59) (c)		2.927	%	09/27/19		500,000		501,459
Goldman Sachs Group, Inc.		2.300	%	12/13/19		225,000		222,775
Goldman Sachs Group, Inc.		2.600	%	12/27/20		1,000,000		982,409
Goldman Sachs Group, Inc. (3MO LIBOR + 111) (c)		3.472	%	04/26/22		450,000		454,412
Huntington National Bank (3MO LIBOR + 51) (c)		2.837	%	03/10/20		1,000,000		1,002,113
JPMorgan Chase & Co.		2.250	%	01/23/20		50,000		49,363
JPMorgan Chase & Co.		2.550	%	10/29/20		1,000,000		985,296
JPMorgan Chase & Co. (3MO LIBOR + 100) (b)(c)		3.348	%	01/15/23		400,000		404,581
Key Banc NA		1.600	%	08/22/19		750,000		738,925
Key Banc NA (b)		3.350	%	06/15/21		500,000		500,776
Mizuho Financial Group		2.273	%	09/13/21		500,000		479,815
Morgan Stanley		2.650	%	01/27/20		486,000		482,455
Morgan Stanley (3MO LIBOR + 118) (b)(c)		3.539	%	01/20/22		1,000,000		1,013,041
National Australia Bank, New York		2.250	%	01/10/20		500,000		493,955

DIAMOND HILL FUNDS | SEMI- ANNUAL REPORT | JUNE 30, 2018 | DIAMOND-HILL.COM 21

Diamond Hill Short Duration Total Return Fund
Schedule of Investments (Continued)
June 30, 2018 (Unaudited)

	Coupon			Maturity	Shares / Par Value		Fair Value
Corporate Credit — 7.7% continued
Banking — 4.3% continued
Nordea Bank AB (3MO LIBOR + 62) (a)(c)		2.954	%	09/30/19	$	250,000	$	251,356
Popular, Inc.		7.000	%	07/01/19		200,000		203,000
Rabobank Nederland NY		2.250	%	01/14/20		300,000		296,273
Royal Bank of Canada		1.500	%	07/29/19		220,000		216,867
Skandinaviska Enskilda Banken AB		1.500	%	09/13/19		500,000		491,201
Svenska Handelsbanken AB		1.500	%	09/06/19		500,000		491,838
Toronto-Dominion Bank		1.450	%	09/06/18		450,000		449,168
Toronto-Dominion Bank		1.450	%	08/13/19		20,000		19,709
Wells Fargo & Co.		2.400	%	01/15/20		1,750,000		1,733,118
Westpac Banking Corp.		1.600	%	08/19/19		425,000		418,994
								18,455,122
Basic Industry — 0.1%
E.I. du Pont de Nemours & Co. (b)		2.200	%	05/01/20		425,000		418,900
Capital Goods — 0.1%
Beacon Roofing Supply, Inc.		6.375	%	10/01/23		100,000		103,250
Summit Materials LLC		8.500	%	04/15/22		125,000		133,919
								237,169
Communications — 0.3%
American Tower Corp.		2.250	%	01/15/22		250,000		238,948
Cogent Communications, Inc. (a)		5.375	%	03/01/22		25,000		25,625
Crown Castle International Corp.		2.250	%	09/01/21		425,000		407,374
CSC Holdings LLC (a)		10.125	%	01/15/23		400,000		441,000
Deutsche Telekom International Finance (a)		1.500	%	09/19/19		200,000		196,234
								1,309,181
Consumer Cyclical — 0.8%
BMW U.S. Capital LLC (a)		1.450	%	09/13/19		225,000		221,062
CCM Merger, Inc. (a)		6.000	%	03/15/22		200,000		203,560
Daimler Finance NA LLC (a)(b)		1.750	%	10/30/19		350,000		343,858
Ford Motor Credit Co. LLC		1.897	%	08/12/19		500,000		493,061
Ford Motor Credit Co. LLC		2.681	%	01/09/20		200,000		198,118
General Motors Financial Co. (b)		2.350	%	10/04/19		1,000,000		991,425
General Motors Financial Co. (b)		3.200	%	07/06/21		25,000		24,673
Nissan Motor Acceptance Corp. (a)		1.550	%	09/13/19		425,000		417,342
Toyota Motor Credit Corp.		1.950	%	04/17/20		425,000		417,752
								3,310,851
Consumer Non-Cyclical — 0.3%
Amgen, Inc.		2.650	%	05/11/22		860,000		832,614
Mondelēz International, Inc. (a)		1.625	%	10/28/19		250,000		245,675
								1,078,289
Electric — 0.4%
NextEra Energy, Inc.		1.649	%	09/01/18		215,000		214,528
Sempra Energy		1.625	%	10/07/19		370,000		363,012
Southern Power Co.		1.950	%	12/15/19		250,000		245,754
WEC Energy Group, Inc.		3.375	%	06/15/21		950,000		952,629
								1,775,923
Energy — 0.2%
Energen Corp.		4.625	%	09/01/21		125,000		124,375
Sinopec Group Overseas Development Ltd. (a)		1.750	%	09/29/19		500,000		490,745
Welltec A/S (a)		9.500	%	12/01/22		200,000		201,000
								816,120
Finance Companies — 0.3%
American Express Credit Corp.		1.700	%	10/30/19		900,000		886,020
IBCIL Finance Co. Ltd. (a)		2.125	%	09/29/19		200,000		196,385
Nationstar Mortgage/Capital Corp.		6.500	%	07/01/21		100,000		99,720
Nationstar Mortgage/Capital Corp.		6.500	%	06/01/22		100,000		99,250
								1,281,375

22 DIAMOND HILL FUNDS | SEMI- ANNUAL REPORT | JUNE 30, 2018 | DIAMOND-HILL.COM

Diamond Hill Short Duration Total Return Fund
Schedule of Investments (Continued)
June 30, 2018 (Unaudited)

	Coupon			Maturity	Shares / Par Value		Fair Value
Corporate Credit — 7.7% continued
Insurance — 0.8%
Jackson National Life Global Funding (a)(c)		2.807	%	06/11/21	$	950,000	$	951,210
Jackson National Life Global Funding (a)		2.100	%	10/25/21		200,000		191,559
Met Life Global Funding I (3MO LIBOR + 40) (a)(c)		2.726	%	06/12/20		1,000,000		1,004,975
New York Life Global Funding (a)		1.500	%	10/24/19		500,000		490,669
PRICOA Global Funding I (a)		1.450	%	09/13/19		350,000		344,133
Principal Life Global Funding II (a)		2.375	%	11/21/21		400,000		387,076
								3,369,622
REITS — 0.0% (d)
Crescent Communities, Inc. (a)		8.875	%	10/15/21		170,000		179,350
Transportation — 0.1%
Continental Airlines Pass-Through Trust, Series 2012-1, Class B		6.250	%	10/11/21		86,316		88,587
U.S. Airways Pass-Through Trust, Series 2012-2, Class B		6.750	%	12/03/22		149,507		157,700
United Airlines Pass-Through Trust, Series 2007-1, Class A		6.636	%	07/02/22		133,200		139,860
United Airlines Pass-Through Trust, Series 2013-1, Class B		5.375	%	02/15/23		101,876		103,913
								490,060
Total Corporate Credit							$	32,721,962
Securitized — 86.6%
ABS-Other — 11.4%
Access Point Financial, Series 2017-A, Class C (a)		5.820	%	04/15/29		4,750,000		4,719,573
Access Point Financial, Series 2017-A, Class D (a)		6.000	%	04/15/29		5,000,000		4,925,707
Gold Key Resorts LLC, Series 2014-A, Class A (a)		3.220	%	03/17/31		252,191		249,121
Hero Funding Trust, Series 2016-3B, Class B (a)		5.240	%	09/20/42		558,770		559,582
Hero Funding Trust, Series 2016-1R, Class A1 (a)		4.500	%	09/21/42		1,135,491		1,129,813
Hero Funding Trust, Series 2016-4B, Class B (a)		4.990	%	09/20/47		1,467,945		1,457,986
LTCG Securitization, Series 2018-A, Class A (a)		4.590	%	06/15/48		1,400,000		1,400,130
MarketPlace Loan Trust, Series 2016-BS1, Class A (a)		4.500	%	01/15/21		356,245		357,062
MarketPlace Loan Trust, Series 2017-BS1, Class A (a)(c)		3.500	%	01/18/22		2,738,464		2,732,154
Mosaic Solar Loans LLC, Series 2017-2A, Class A (a)		3.820	%	09/20/42		1,261,740		1,253,137
Mosaic Solar Loans LLC, Series 2017-2A, Class B (a)		4.770	%	09/20/42		1,000,000		1,004,336
New Residential Advance Receivables Trust, Series 2016-T2, Class DT2 (a)		4.005	%	10/15/49		1,354,000		1,336,843
New Residential Advance Receivables Trust, Series 2016-T2, Class ET2 (a)		5.574	%	10/15/49		1,000,000		992,868
New Residential Advance Receivables Trust, Series 2016-T4, Class ET4 (a)		6.250	%	12/15/50		2,500,000		2,504,822

DIAMOND HILL FUNDS | SEMI- ANNUAL REPORT | JUNE 30, 2018 | DIAMOND-HILL.COM 23

Diamond Hill Short Duration Total Return Fund
Schedule of Investments (Continued)
June 30, 2018 (Unaudited)

	Coupon			Maturity	Shares / Par Value		Fair Value
Securitized — 86.6% continued
ABS-Other — 11.4% continued
New Residential Advance Receivables Trust, Series 2017-T1, Class ET1 (a)		5.815	%	02/15/51	$	2,845,000	$	2,790,430
Ocwen Master Advance Receivables Trust, Series 2016-T1, Class AT1 (a)		2.521	%	08/17/48		2,000,000		2,001,378
Ocwen Master Advance Receivables Trust, Series 2016-T1, Class DT1 (a)		4.246	%	08/17/48		1,900,000		1,902,854
Ocwen Master Advance Receivables Trust, Series 2017-T1, Class DT1 (a)		3.536	%	09/15/48		3,150,000		3,143,869
Ocwen Master Advance Receivables Trust, Series 2016-T2, Class DT2 (a)		4.446	%	08/16/49		1,000,000		1,000,433
OnDeck Asset Securitization Trust, Series 2018-1A, Class B (a)		4.020	%	04/18/22		1,400,000		1,396,476
PNMAC GMSR Issuer Trust, Series 2018-GT1, Class A (1MO LIBOR + 285) (a)(c)		4.941	%	02/25/23		2,000,000		2,012,051
PNMAC GMSR Issuer Trust, Series 2017-GT2, Class A (1MO LIBOR + 400) (a)(c)		6.091	%	08/25/23		1,500,000		1,511,293
Renew Financial LLC, Series 2017-1A, Class B (a)(c)		5.750	%	09/20/52		1,560,048		1,586,086
SPS Servicer Advance Receivables Trust, Series 2016-T2, Class CT2 (a)		3.590	%	11/15/49		650,000		642,502
TES LLC, Series 2017-1A, Class B (a)		7.740	%	10/20/47		2,000,000		2,046,290
Westgate Resorts, Series 2016-1A, Class A (a)		3.500	%	12/20/28		646,685		644,709
Westgate Resorts, Series 2018-1A, Class B (a)		3.580	%	12/20/31		1,206,213		1,199,024
Westgate Resorts, Series 2018-1A, Class C (a)		4.100	%	12/20/31		1,929,941		1,924,306
								48,424,835
Agency CMBS — 0.0% (d)
FNMA, Pool FN AE0834 (c)		3.977	%	01/01/21		160,755		163,843
Agency MBS CMO — 1.1%
FHLMC, Series 2814, Class PH		6.000	%	06/15/34		321,908		353,336
FHLMC, Series 4613, Class AF (1MO LIBOR + 110) (c)		3.173	%	11/15/37		1,185,159		1,215,116
FNMA, Series 1994-4, Class ZC		6.500	%	01/25/24		50,025		53,517
FNMA, Series 2012-3, Class EA		3.500	%	10/25/29		203,345		205,641
FNMA, Series 2002-86, Class PG		6.000	%	12/25/32		353,705		388,634
FNMA, Series 2003-131, Class CH		5.500	%	01/25/34		115,250		126,965
FNMA, Series 2006-9, Class KZ		6.000	%	03/25/36		284,445		311,585
FNMA, Series 2006-56, Class DC (1MO LIBOR + 65) (c)		2.741	%	07/25/36		1,050,847		1,055,769
FNMA, Series 2007-B1, Class ZA		5.500	%	04/25/37		134,295		146,977
FNMA, Series 2007-39, Class NB		4.250	%	05/25/37		403,374		421,334

24 DIAMOND HILL FUNDS | SEMI- ANNUAL REPORT | JUNE 30, 2018 | DIAMOND-HILL.COM

Diamond Hill Short Duration Total Return Fund
Schedule of Investments (Continued)
June 30, 2018 (Unaudited)

	Coupon			Maturity	Shares / Par Value		Fair Value
Securitized — 86.6% continued
Agency MBS CMO — 1.1% continued
FNMA, Series 2011-46, Class MB		4.000	%	06/25/37	$	26,944	$	26,921
GNMA, Series 2011-18, Class NA		4.000	%	05/20/39		32,912		33,133
GNMA, Series 2016-H11, Class FD (12MO LIBOR + 40) (c)		3.063	%	05/20/66		132,476		134,254
Vendee Mortgage Trust, Series 1995-3, Class 1Z		7.250	%	09/15/25		143,672		158,116
								4,631,298
Agency MBS CMO Derivatives — 1.1%
FHLMC, Series 3994, Class EI		3.000	%	02/15/22		2,107,576		87,067
FHLMC, Series 3874, Class KI		4.500	%	08/15/25		1,620,196		81,843
FHLMC, Series 3946, Class SB (1MO LIBOR + 675) (c)		4.677	%	10/15/26		461,369		42,550
FNMA, Series 2011-75, Class MI		3.500	%	08/25/26		886,215		83,652
FNMA, Series 2012-148, Class IA		4.000	%	01/25/28		6,585,398		755,071
FNMA, Series 348, Class 11		6.000	%	01/25/34		1,181,020		299,876
FNMA, Series 2010-44, Class CS (-1*1MO LIBOR + 655) (c)		4.459	%	05/25/40		1,324,092		158,362
FNMA, Series 2011-14, Class PI		5.000	%	06/25/40		825,512		93,495
FNMA, Series 2014-45, Class IO		4.000	%	08/25/44		1,750,710		359,607
GNMA, Series 2014-141, Class IE		4.000	%	08/20/43		6,229,455		524,572
GNMA, Series BC-H066, Class DI (c)		2.432	%	05/31/64		27,565,991		640,421
GNMA, Series 2016-H20, Class GI (c)		0.656	%	08/20/66		56,612,384		725,346
GNMA, Series 2017-H22, Class ID (c)		2.523	%	11/20/67		7,905,161		154,981
GNMA, Series GNH-708, Class AI (c)		1.101	%	05/20/68		27,964,237		803,972
								4,810,815
Agency MBS Passthrough — 0.3%
FHLMC, Pool FG G60257		5.500	%	06/01/41		1,070,377		1,156,207
FNMA, Pool FN 725146		6.500	%	07/01/19		10,673		10,722
								1,166,929
Auto Loan — 22.1%
ACC Trust, Series 2018-1, Class A (a)		3.700	%	12/21/20		2,119,089		2,119,732
ACC Trust, Series 2018-1, Class B (a)		4.820	%	05/20/21		2,000,000		2,001,971
American Credit Acceptance Receivables Trust, Series 2016-3, Class C (a)		4.260	%	08/12/22		246,000		247,932
American Credit Acceptance Receivables Trust, Series 2017-1, Class D (a)		3.540	%	03/13/23		900,000		896,717
California Republic Auto Receivables Trust, Series 2015-4, Class C (a)		4.230	%	09/15/22		85,000		84,747
Chesapeake Funding II LLC, Series 2018-1A, Class A1 (a)		3.040	%	04/15/30		5,000,000		4,983,483
CIG Auto Receivables Trust, Series 2017-1A, Class C (a)		5.330	%	12/16/24		1,600,000		1,596,154
CPS Auto Trust, Series 2013-D, Class D (a)		5.540	%	11/15/19		1,900,000		1,908,619
CPS Auto Trust, Series 2016-C, Class A (a)		1.620	%	01/15/20		5,659		5,655

DIAMOND HILL FUNDS | SEMI- ANNUAL REPORT | JUNE 30, 2018 | DIAMOND-HILL.COM 25

Diamond Hill Short Duration Total Return Fund
Schedule of Investments (Continued)
June 30, 2018 (Unaudited)

	Coupon			Maturity	Shares / Par Value		Fair Value
Securitized — 86.6% continued
Auto Loan — 22.1% continued
CPS Auto Trust, Series 2018-B, Class D (a)		4.260	%	03/15/24	$	1,550,000	$	1,553,994
CPS Auto Trust, Series 2017-A, Class E (a)		7.070	%	04/15/24		4,250,000		4,446,835
Drive Auto Receivables Trust, Series 2015-BA, Class C (a)		2.760	%	07/15/21		94,876		94,943
Drive Auto Receivables Trust, Series 2017-3, Class D (a)		3.530	%	12/15/23		5,365,000		5,344,910
Drive Auto Receivables Trust, Series 2018-2, Class D		4.140	%	08/15/24		3,400,000		3,418,974
DT Auto Owner Trust, Series 18-2, Class D (a)(b)		4.150	%	03/15/24		4,000,000		4,004,387
Flagship Credit Auto Trust, Series 2014-1, Class E (a)		5.710	%	08/16/21		1,000,000		1,007,206
FourSight Capital Automobile Receivables Trust, Series 2018-1, Class D (a)(c)		4.190	%	11/15/23		1,900,000		1,893,201
FourSight Capital Automobile Receivables Trust, Series 2018-1, Class E (a)(c)		5.560	%	01/16/24		1,500,000		1,500,165
FourSight Capital Automobile Receivables Trust, Series 2017-1, Class D (a)		5.280	%	08/15/24		1,700,000		1,715,273
GLS Auto Receivables Trust, Series 2016-1A, Class C (a)		6.900	%	10/15/21		1,900,000		1,971,431
GM Financial Automobile Leasing Trust, Series 2016-3, Class C		2.380	%	05/20/20		1,000,000		992,546
GO Financial Auto Securitization Trust, Series 2015-2, Class B (a)		4.800	%	08/17/20		5,603		5,609
Hertz Fleet Lease Funding LP, Series 2017-1, Class E (a)		5.800	%	04/10/31		900,000		904,608
Hertz Fleet Lease Funding LP, Series 2018-1, Class E (a)		5.550	%	05/10/32		2,750,000		2,750,997
Honor Automobile Trust Securitization, Series 2016-1A, Class A (a)		2.940	%	11/15/19		264,117		264,149
Honor Automobile Trust Securitization, Series 2016-1A, Class C (a)		8.050	%	11/15/22		5,160,000		5,254,181
Navistar Financial Dealer Master Trust, Series 2016-1, Class B (1MO LIBOR + 175) (a)(c)		3.841	%	09/27/21		1,040,000		1,041,964
Navistar Financial Dealer Master Trust, Series 2016-1, Class D (1MO LIBOR + 330) (a)(c)		5.391	%	09/27/21		570,000		573,109
NextGear Floorplan Master Owner Trust, Series 2018-1A, Class A1 (1MO LIBOR + 64) (a)(c)		2.713	%	02/15/23		4,175,000		4,181,422
OneMain Direct Auto Receivables Trust, Series 2017-2A, Class E (a)		4.740	%	11/14/25		3,000,000		2,975,256
OSCAR US Funding Trust, Series 16-2A, Class A2A (a)(c)		2.310	%	11/15/19		1,312,949		1,310,724

26 DIAMOND HILL FUNDS | SEMI- ANNUAL REPORT | JUNE 30, 2018 | DIAMOND-HILL.COM

Diamond Hill Short Duration Total Return Fund
Schedule of Investments (Continued)
June 30, 2018 (Unaudited)

	Coupon			Maturity	Shares / Par Value		Fair Value
Securitized — 86.6% continued
Auto Loan — 22.1% continued
OSCAR US Funding Trust, Series 2017-1A, Class A2B (1MO LIBOR + 80) (a)(c)		2.846	%	05/11/20	$	3,578,016	$	3,583,283
OSCAR US Funding Trust, Series 2017-2A, Class A2B (1MO LIBOR + 65) (a)(c)		2.696	%	11/10/20		1,671,918		1,673,949
OSCAR US Funding Trust, Series 2018-1A, Class A2B (1MO LIBOR + 49) (a)(c)		2.536	%	04/12/21		4,850,000		4,855,558
OSCAR US Funding Trust, Series 2017-1A, Class A3 (a)(c)		2.820	%	06/10/21		1,400,000		1,393,960
Prestige Auto Receivables Trust, Series 2015-1, Class D (a)		3.050	%	04/15/21		100,000		99,909
Prestige Auto Receivables Trust, Series 2015-1, Class E (a)(c)		4.670	%	01/17/22		2,300,000		2,320,147
Santander Retail Auto Lease Trust, Series 2017-A, Class A4 (a)		2.370	%	01/20/22		1,900,000		1,873,397
Santander Retail Auto Lease Trust, Series 2017-A, Class C (a)		2.960	%	11/21/22		1,650,000		1,626,651
Securitized Term Auto Receivables Trust, Series 2017-2A, Class A4 (a)		2.289	%	03/25/22		4,000,000		3,898,424
Skopos Auto Receivables Trust, Series 2018-1A, Class C (a)(c)		4.770	%	04/17/23		3,000,000		2,987,998
Tesla Auto Lease Trust, Series 2018-A, Class E (a)(c)		4.940	%	03/22/21		3,350,000		3,340,348
United Auto Credit Securitization Trust, Series 2017-1, Class E (a)		5.090	%	03/10/23		2,350,000		2,357,964
Veros Auto Receivables Trust, Series 2017-1, Class A (a)		2.840	%	04/17/23		1,137,637		1,132,988
Westlake Automobile Receivables Trust, Series 2018-2A, Class D (a)		4.000	%	01/16/24		1,910,000		1,916,726
								94,112,196
Consumer — 23.3%
Arcadia Receivables Credit Trust, Series 2017-1, Class A (a)		3.250	%	06/15/23		541,107		542,369
Arcadia Receivables Credit Trust, Series 2017-1, Class B (a)		5.500	%	06/15/23		3,900,000		3,925,261
Citi Held for Asset Issuance, Series 2016-MF1, Class C (a)		10.390	%	08/15/22		225,000		233,322
Consumer Installment Loan Trust, Series 2016-LD1, Class A (a)		3.960	%	07/15/22		245,940		245,934
Consumer Loan Underlying Bond Credit Trust, Series 2017-P1, Class A (a)		2.420	%	09/15/23		948,134		945,854
Consumer Loan Underlying Bond Credit Trust, Series 2017-P1, Class B (a)		3.560	%	09/15/23		7,000,000		6,970,117
Consumer Loan Underlying Bond Credit Trust, Series 2017-P1, Class C (a)		5.020	%	09/15/23		2,000,000		2,001,624

DIAMOND HILL FUNDS | SEMI- ANNUAL REPORT | JUNE 30, 2018 | DIAMOND-HILL.COM 27

Diamond Hill Short Duration Total Return Fund
Schedule of Investments (Continued)
June 30, 2018 (Unaudited)

	Coupon			Maturity	Shares / Par Value		Fair Value
Securitized — 86.6% continued
Consumer — 23.3% continued
Consumer Loan Underlying Bond Credit Trust, Series 17-NP2, Class B (a)(c)		3.500	%	01/16/24	$	800,000	$	799,180
Consumer Loan Underlying Bond Credit Trust, Series 17-NP2, Class C (a)(c)		4.870	%	01/16/24		2,000,000		2,010,515
Consumer Loan Underlying Bond Credit Trust, Series 2018-NP1, Class B (a)(c)		3.670	%	05/15/24		1,900,000		1,896,524
Consumer Loan Underlying Bond Credit Trust, Series 2018-NP1, Class C (a)(c)		4.740	%	05/15/24		2,000,000		1,998,642
Freedom Financial, Series 2018-1, Class A (a)		3.610	%	07/18/24		6,000,000		5,999,495
Freedom Financial, Series 2018-1, Class B (a)		4.560	%	07/18/24		4,000,000		3,999,901
LendingClub Issuance Trust, Series 2016-NP1, Class B (a)		6.500	%	06/15/22		796,851		804,261
LendingClub Issuance Trust, Series 2016-NP2, Class B (a)		6.000	%	01/17/23		3,500,000		3,550,024
Lendmark Funding Trust, Series 2017-1A, Class B (a)		3.770	%	01/22/24		400,000		399,574
Lendmark Funding Trust, Series 2017-1A, Class C (a)		5.410	%	01/22/24		2,300,000		2,356,642
Lendmark Funding Trust, Series 2016-2A, Class C (a)		6.640	%	04/21/25		2,900,000		2,978,979
Mariner Finance Issuance Trust, Series 2017-AA, Class B (a)		4.740	%	02/20/29		400,000		404,411
Mariner Finance Issuance Trust, Series 2017-AA, Class C (a)		6.730	%	02/20/29		1,750,000		1,807,130
Mariner Finance Issuance Trust, Series 2017-BA, Class A (a)(c)		2.920	%	12/20/29		400,000		394,166
Mariner Finance Issuance Trust, Series 2017-BA, Class C (a)		4.570	%	12/20/29		10,150,000		9,939,208
MarketPlace Loan Trust, Series 2015-AV2, Class B (a)		5.750	%	10/15/21		105,727		105,852
MarketPlace Loan Trust, Series 2015-AV2, Class C (a)		7.500	%	10/15/21		2,073,802		2,090,788
Marlette Funding Trust, Series 2016-1A, Class A (a)		3.060	%	01/17/23		8,443		8,442
Marlette Funding Trust, Series 2016-1A, Class B (a)		4.780	%	01/17/23		100,000		100,738
Marlette Funding Trust, Series 2017-1A, Class B (a)		4.114	%	03/15/24		3,100,000		3,118,081
Murray Hill MarketPlace Trust, Series 2016-LC1, Class B (a)		6.150	%	11/25/22		67,133		67,187
OneMain Financial Issuance Trust, Series 2015-1A, Class B (a)		3.850	%	03/18/26		3,945,000		3,971,013
OneMain Financial Issuance Trust, Series 2016-2A, Class B (a)		5.940	%	03/20/28		6,130,000		6,196,270
Oportun Funding IV LLC, Series 2016-C, Class B (a)		4.850	%	11/08/21		1,810,000		1,823,759
Oportun Funding VI LLC, Series 2017-A, Class B (a)		3.970	%	06/08/23		2,500,000		2,469,260
Oportun Funding VII LLC, Series 2017-B, Class B (a)		4.260	%	10/10/23		2,500,000		2,491,289

28 DIAMOND HILL FUNDS | SEMI- ANNUAL REPORT | JUNE 30, 2018 | DIAMOND-HILL.COM

Diamond Hill Short Duration Total Return Fund
Schedule of Investments (Continued)
June 30, 2018 (Unaudited)

	Coupon			Maturity	Shares / Par Value		Fair Value
Securitized — 86.6% continued
Consumer — 23.3% continued
Prosper Marketplace Issuance Trust, Series 2017-2A, Class B (a)		3.480	%	09/15/23	$	2,150,000	$	2,147,518
Prosper Marketplace Issuance Trust, Series 2018-1A, Class B (a)(c)		3.900	%	06/17/24		5,150,000		5,146,990
Purchasing Power Funding, Series 2018-A, Class C (a)(c)		3.780	%	08/15/22		1,400,000		1,394,289
Purchasing Power Funding, Series 2018-A, Class D (a)(c)		4.660	%	08/15/22		1,000,000		996,694
Springfield Funding Trust, Series 2015-AA, Class B (a)		3.620	%	11/15/24		135,000		134,768
Upstart Securitization Trust, Series 2017-1, Class A (a)		2.639	%	06/20/24		1,705,134		1,701,678
Upstart Securitization Trust, Series 2017-1, Class B (a)		3.802	%	06/20/24		3,350,000		3,344,008
Upstart Securitization Trust, Series 2017-1, Class C (a)		6.350	%	06/20/24		2,850,000		2,918,080
Upstart Securitization Trust, Series 2017-2, Class A (a)		2.508	%	03/20/25		1,227,491		1,224,820
Upstart Securitization Trust, Series 2018-1, Class B (a)		3.887	%	08/20/25		3,250,000		3,245,454
								98,900,111
Equipment — 5.6%
Ascentium Equipment Receivables Trust, Series 2016-2A, Class E (a)(c)		6.790	%	10/10/24		900,000		940,971
Axis Equipment Finance Receivables Trust, Series 2016-1A, Class A (a)		2.210	%	11/20/21		589,100		585,599
BCC Funding Corp., Series 2016-1, Class A2 (a)		2.200	%	12/20/21		138,578		137,873
BCC Funding Corp., Series 2018-1A, Class E (a)(c)		6.000	%	04/21/25		1,000,000		994,189
Business Jet Securities LLC, Series 2018-1, Class A (a)(c)		4.335	%	02/15/33		6,436,847		6,447,835
Business Jet Securities LLC, Series 2018-1, Class B (a)(c)		6.048	%	02/15/33		1,273,555		1,291,402
Business Jet Securities LLC, Series 18-2, Class A (a)		4.447	%	06/15/33		7,750,000		7,749,868
Business Jet Securities LLC, Series 18-2, Class B (a)		5.437	%	06/15/33		2,400,000		2,399,925
Dell Equipment Finance Trust, Series 2018-1, Class D (a)		3.850	%	06/24/24		1,250,000		1,249,932
Global SC Finance SRL, Series 2014-1A, Class A2 (a)		3.090	%	07/17/29		1,207,542		1,183,111
SCF Equipment Trust LLC, Series 2017-1A, Class A (a)		3.770	%	01/20/23		970,965		971,923
								23,952,628
Non Agency CMBS — 18.0%
A10 Securitization, Series 2017-1A, Class A1FL (a)(c)		2.923	%	03/15/36		6,302,423		6,260,082
A10 Securitization, Series 2017-1A, Class C (a)		4.050	%	03/15/36		5,750,000		5,644,278
A10 Securitization, Series 2017-1A, Class D (a)		4.700	%	03/15/36		3,250,000		3,169,909

DIAMOND HILL FUNDS | SEMI- ANNUAL REPORT | JUNE 30, 2018 | DIAMOND-HILL.COM 29

Diamond Hill Short Duration Total Return Fund
Schedule of Investments (Continued)
June 30, 2018 (Unaudited)

	Coupon			Maturity	Shares / Par Value		Fair Value
Securitized — 86.6% continued
Non Agency CMBS — 18.0% continued
AMSR Trust, Series 2016-SFR1, Class A (1MO LIBOR + 140) (a)(c)		3.485	%	11/17/33	$	3,500,000	$	3,509,221
B2R Mortgage Trust, Series 2015-2, Class A (a)		3.336	%	11/15/48		210,935		209,738
Bancorp Commercial Mortgage Trust (The), Series 2017-CRE2, Class C (1MO LIBOR + 235) (a)(c)		4.396	%	08/15/32		4,750,000		4,767,820
Bancorp Commercial Mortgage Trust (The), Series 2016-CRE1, Class D (1MO LIBOR + 400) (a)(c)		8.110	%	11/15/33		3,900,000		3,916,818
Commercial Mortgage Trust, Series 2014-TWC, Class B (1MO LIBOR + 160) (a)(c)		3.528	%	02/13/32		1,340,000		1,341,086
Commercial Mortgage Trust, Series 2014-TWC, Class D (1MO LIBOR + 225) (a)(c)		4.296	%	02/13/32		1,300,000		1,306,395
Commercial Mortgage Trust, Series 2012-CR2, Class E (c)		4.832	%	08/15/45		250,000		237,435
Cosmopolitan Hotel Trust, Series 2017-CSMO, Class D (1MO LIBOR + 225) (a)(c)		4.323	%	11/15/34		4,900,000		4,912,348
FirstKey Lending Trust, Series 2015-SFR1, Class A (a)		2.553	%	03/09/47		396,757		394,627
Fort CRE LLC, Series 2016-1A, Class E (1MO LIBOR + 800) (a)(c)		10.091	%	05/21/36		4,750,000		4,788,724
FREMF Mortgage Trust, Series 2012-K21, Class C (a)(c)		4.071	%	07/25/22		610,000		597,320
FREMF Mortgage Trust, Series 2012-K23, Class C (a)(c)		3.782	%	10/25/45		400,000		393,888
GS Mortgage Securities Trust, Series 2018-CHLL, Class D (1MO LIBOR + 165) (a)(c)		3.723	%	02/15/37		2,900,000		2,896,661
Invitation Homes Trust, Series 2018-SFR1, Class E (1MO LIBOR + 245) (a)(c)		4.085	%	03/17/37		2,600,000		2,607,523
Invitation Homes Trust, Series 2018-SFR2, Class E (1MO LIBOR + 200) (a)(c)		4.047	%	06/17/37		3,500,000		3,510,551
Invitation Homes Trust, Series 2018-SFR3, Class D (1MO LIBOR + 165) (a)(c)		3.650	%	07/17/37		2,850,000		2,851,779
Invitation Homes Trust, Series 2018-SFR3, Class E (1MO LIBOR + 200) (a)(c)		4.000	%	07/17/37		3,500,000		3,502,053
Prime Finance Partners III, Series 2017-3, Class C (1MO LIBOR + 250) (a)(c)		4.573	%	01/14/35		1,275,000		1,278,577
Prime Finance Partners III, Series 2017-3, Class D (1MO LIBOR + 350) (a)(c)		5.573	%	01/14/35		500,000		502,010
Progress Residential Trust, Series 2015-SFR2, Class A (a)		2.740	%	06/12/32		1,842,045		1,816,339
Progress Residential Trust, Series 2015-SFR3, Class A (a)		3.067	%	11/12/32		99,040		98,043

30 DIAMOND HILL FUNDS | SEMI- ANNUAL REPORT | JUNE 30, 2018 | DIAMOND-HILL.COM

Diamond Hill Short Duration Total Return Fund
Schedule of Investments (Continued)
June 30, 2018 (Unaudited)

	Coupon			Maturity	Shares / Par Value		Fair Value
Securitized — 86.6% continued
Non Agency CMBS — 18.0% continued
Progress Residential Trust, Series 2015-SFR3, Class D (a)		4.673	%	11/12/32	$	135,000	$	136,614
RAIT Trust, Series 2016-FL6, Class B (1MO LIBOR + 265) (a)(c)		4.697	%	11/13/31		1,400,000		1,401,622
ReadyCap Commercial Mortgage Trust, Series 2017-FL1, Class B (a)(c)		3.741	%	05/25/34		5,000,000		5,014,696
ReadyCap Commercial Mortgage Trust, Series 2017-FL1, Class D (1MO LIBOR + 385) (a)(c)		5.941	%	05/25/34		1,750,000		1,760,078
ReadyCap Commercial Mortgage Trust, Series 2018-FL2, Class D (a)		4.680	%	06/25/35		5,000,000		5,004,640
Resource Capital Corp. Ltd., Series 2017-CRE5, Class B (1MO LIBOR + 200) (a)(c)		3.939	%	07/15/34		1,993,365		1,994,804
WF-RBS Commercial Mortgage Trust, Series 2011-C2, Class D (a)(c)		5.838	%	02/15/44		665,000		673,641
								76,499,320
Non Agency MBS CMO — 2.1%
Arroyo Mortgage Trust, Series 2018-1, Class A1 (a)		3.763	%	04/25/48		3,258,284		3,264,384
Cascade Funding Mortgage Trust, Series 2018-RM1, Class A1 (a)		4.580	%	06/25/48		1,350,000		1,349,982
Cascade Funding Mortgage Trust, Series 2018-RM1, Class A2 (a)		5.875	%	06/25/48		2,800,000		2,800,000
Citigroup Mortgage Loan Trust, Inc., Series 2004-UST1, Class A3 (c)		3.681	%	08/25/34		14,874		15,146
COLT Funding LLC, Series 2016-2, Class M1 (a)		5.500	%	09/25/46		750,000		751,875
First Horizon Mortgage Pass-Through Trust, Series 2005-AR1, Class 2A2 (c)		3.978	%	04/25/35		204,297		208,825
RiverView HECM Trust, Series 2007-1, Class A (12MO LIBOR + 50) (a)(c)		2.840	%	05/25/47		140,977		128,642
Sequoia Mortgage Trust, Series 2003-1, Class 1A (1MO LIBOR + 76) (c)		2.708	%	04/20/33		194,423		190,976
Wells Fargo Mortgage Backed Securities, Series 2003-H, Class A1 (c)		3.620	%	09/25/33		262,648		266,089
								8,975,919
Student Loan — 1.6%
College Ave Student Loans, Series 2017-A, Class B (a)		4.500	%	11/26/46		660,000		655,558
College Ave Student Loans, Series 2018-A, Class B (a)(c)		4.750	%	12/26/47		1,900,000		1,899,912
College Ave Student Loans, Series 2018-A, Class C (a)(c)		5.500	%	12/26/47		900,000		868,282

DIAMOND HILL FUNDS | SEMI- ANNUAL REPORT | JUNE 30, 2018 | DIAMOND-HILL.COM 31

Diamond Hill Short Duration Total Return Fund
Schedule of Investments (Continued)
June 30, 2018 (Unaudited)

	Coupon			Maturity	Shares / Par Value		Fair Value
Securitized — 86.6% continued
Student Loan — 1.6% continued
CommonBond Student Loan Trust, Series 2017-BGS, Class C		4.440	%	09/25/42	$	1,000,000	$	1,007,689
Earnest Student Loan Program LLC, Series 2016-C, Class A2 (a)		2.680	%	07/25/35		448,924		439,080
Earnest Student Loan Program LLC, Series 2016-D, Class R		0.000	%	01/25/41		5,000		353,150
Social Professional Loan Program, Series 2018-A, Class A1 (1MO LIBOR + 35) (a)(c)		2.441	%	02/25/42		1,520,470		1,520,469
								6,744,140
Total Securitized							$	368,382,034
Treasury — 5.3%
U.S. Treasury Notes		1.500	%	08/31/18		2,500,000		2,498,300
U.S. Treasury Notes (b)		1.000	%	09/15/18		2,000,000		1,996,160
U.S. Treasury Notes (b)		0.875	%	10/15/18		6,000,000		5,980,682
U.S. Treasury Notes (b)		1.250	%	12/31/18		6,000,000		5,972,578
U.S. Treasury Notes		3.125	%	05/15/19		6,000,000		6,039,375
Total Treasury							$	22,487,095

	Shares		Fair Value
Registered Investment Companies — 4.1%
State Street Institutional Liquid Reserves Fund, Premier Class, 2.08% (e)		7,467,184	$	7,467,930
State Street Navigator Securities Lending Portfolio I, 2.06% (e)		9,894,063		9,894,063
Total Registered Investment Companies			$	17,361,993
Total Investment Securities — 103.7%
(Cost $441,661,685)			$	440,953,084
Net Other Assets (Liabilities) — (3.7)%				(15,590,131	)
Net Assets — 100.0%			$	425,362,953

^(a)  Restricted securities not registered under the Securities Act of 1933. The total fair value of these securities as of June 30, 2018 was $360,192,292, representing 84.7% of net assets.

^(b)  All or a portion of the security is on loan. The total fair value of the securities on loan as of June 30, 2018 was $9,689,242.

^(c)  Variable rate security. The rate shown is the effective interest rate as of June 30, 2018. The benchmark on which the rate is calculated is shown parenthetically; otherwise, the rate fluctuations may be based on index changes, prepayment of underlying positions and/or other variables.

^(d)  Percentage rounds to less than 0.1%.

^(e)  The rate shown is the effective interest rate as of June 30, 2018.

AB – Aktiebolag

A/S – Aktieselskab

LIBOR – London Interbank Offered Rate

NA – National Association

NV – Naamloze Vennootschap

See accompanying Notes to Financial Statements.

32 DIAMOND HILL FUNDS | SEMI- ANNUAL REPORT | JUNE 30, 2018 | DIAMOND-HILL.COM

Diamond Hill Core Bond Fund
Schedule of Investments
June 30, 2018 (Unaudited)

	Coupon			Maturity	Shares / Par Value		Fair Value
Corporate Credit — 17.8%
Banking — 6.1%
Bank of America Corp.		2.881	%	04/24/23	$	100,000	$	97,229
Bank of America Corp. (b)		3.824	%	01/20/28		100,000		97,509
Bank of Montreal (a)		1.350	%	08/28/18		75,000		74,874
Bank of New York Mellon Corp. (The) (a)		3.000	%	10/30/28		100,000		91,315
Bank of Nova Scotia		1.650	%	06/14/19		65,000		64,298
Canadian Imperial Bank		1.600	%	09/06/19		75,000		73,895
Capital One Financial Corp. (a)		3.750	%	07/28/26		100,000		92,887
Citigroup, Inc.		3.300	%	04/27/25		100,000		95,846
Citigroup, Inc. (b)		3.576	%	07/01/26		100,000		99,976
Citigroup, Inc.		4.125	%	07/25/28		150,000		143,550
Discover Financial Services, Inc.		4.100	%	02/09/27		100,000		95,884
Goldman Sachs Group, Inc.		2.300	%	12/13/19		25,000		24,753
Goldman Sachs Group, Inc. (3MO LIBOR + 111) (b)		3.472	%	04/26/22		50,000		50,490
Goldman Sachs Group, Inc.		3.500	%	01/23/25		80,000		77,232
Goldman Sachs Group, Inc.		3.500	%	11/16/26		100,000		94,188
Huntington Bancshares, Inc.		2.300	%	01/14/22		100,000		96,007
JPMorgan Chase & Co.		2.250	%	01/23/20		100,000		98,725
JPMorgan Chase & Co. (3MO LIBOR + 100) (a)(b)		3.348	%	01/15/23		100,000		101,145
JPMorgan Chase & Co. (b)		3.782	%	02/01/28		100,000		97,393
JPMorgan Chase & Co. (b)		3.509	%	01/23/29		100,000		94,831
Key Bank NA		2.500	%	11/22/21		250,000		242,760
Morgan Stanley		3.737	%	04/24/24		100,000		99,368
Morgan Stanley		3.700	%	10/23/24		100,000		98,682
Morgan Stanley		3.125	%	07/27/26		100,000		92,990
Morgan Stanley		3.625	%	01/20/27		100,000		96,207
Regions Financial Corp.		2.750	%	08/14/22		250,000		241,139
Royal Bank of Canada		1.500	%	07/29/19		30,000		29,573
Toronto-Dominion Bank		1.450	%	09/06/18		50,000		49,908
Toronto-Dominion Bank		1.450	%	08/13/19		30,000		29,564
Wells Fargo & Co.		2.400	%	01/15/20		250,000		247,588
Wells Fargo & Co. (a)		3.550	%	09/29/25		100,000		96,907
Westpac Banking Corp.		1.600	%	08/19/19		75,000		73,940
								3,160,653
Basic Industry — 0.1%
E.I. du Pont de Nemours & Co.		2.200	%	05/01/20		75,000		73,924
Brokerage Asset Managers Exchanges — 0.2%
CBOE Holdings, Inc.		3.650	%	01/12/27		100,000		96,461
Capital Goods — 0.5%
General Electric Capital Corp. (a)		6.750	%	03/15/32		100,000		122,000
L-3 Communications Corp.		3.850	%	12/15/26		50,000		48,096
Lennox International, Inc.		3.000	%	11/15/23		100,000		95,162
								265,258
Communications — 1.5%					��
American Tower Corp.		2.250	%	01/15/22		50,000		47,790
AT&T, Inc. (a)		3.200	%	03/01/22		50,000		49,053
AT&T, Inc.		4.500	%	05/15/35		100,000		92,439
Comcast Corp.		3.969	%	11/01/47		144,000		126,736
Crown Castle International Corp.		2.250	%	09/01/21		75,000		71,890
Deutsche Telekom International Finance (a)(c)		4.750	%	06/21/38		100,000		98,227
Time Warner, Inc.		3.800	%	02/15/27		100,000		94,553
Verizon Communications, Inc. (3MO LIBOR + 110) (b)		2.875	%	05/15/25		100,000		99,886
Verizon Communications, Inc. (a)		4.125	%	03/16/27		100,000		98,573
								779,147
Consumer Cyclical — 1.9%
BMW U.S. Capital LLC (c)		1.450	%	09/13/19		25,000		24,562
CVS Health Corp.		5.050	%	03/25/48		250,000		252,499

DIAMOND HILL FUNDS | SEMI- ANNUAL REPORT | JUNE 30, 2018 | DIAMOND-HILL.COM 33

Diamond Hill Core Bond Fund
Schedule of Investments (Continued)
June 30, 2018 (Unaudited)

	Coupon			Maturity	Shares / Par Value		Fair Value
Corporate Credit — 17.8% continued
Consumer Cyclical — 1.9% continued
Daimler Finance NA LLC (c)		1.750	%	10/30/19	$	150,000	$	147,368
Ford Motor Co. (a)		4.346	%	12/08/26		100,000		97,764
Ford Motor Co.		7.450	%	07/16/31		75,000		88,128
General Motors Financial Co. (a)		3.200	%	07/06/21		35,000		34,542
General Motors Financial Co.		4.000	%	10/06/26		100,000		94,769
Home Depot, Inc. (The)		3.500	%	09/15/56		100,000		85,818
Nissan Motor Acceptance Corp. (c)		1.550	%	09/13/19		75,000		73,649
Toyota Motor Credit Corp.		1.950	%	04/17/20		75,000		73,721
								972,820
Consumer Non-Cyclical — 1.4%
Abbott Laboratories		4.750	%	11/30/36		100,000		105,423
Actavis Funding SCS		4.550	%	03/15/35		100,000		94,821
Amgen, Inc.		2.650	%	05/11/22		140,000		135,542
Anheuser-Busch InBev SA/NV (a)		3.500	%	01/12/24		100,000		99,482
Anheuser-Busch InBev SA/NV (a)		4.700	%	02/01/36		100,000		101,287
Kroger Co. (The) (a)		2.650	%	10/15/26		100,000		88,494
Thermo Fisher Scientific, Inc.		2.950	%	09/19/26		100,000		92,349
								717,398
Electric — 1.1%
CMS Energy Corp.		2.950	%	02/15/27		100,000		91,460
DTE Energy Co. (a)		2.850	%	10/01/26		100,000		91,061
Entergy Corp.		2.950	%	09/01/26		50,000		45,653
NextEra Energy, Inc.		1.649	%	09/01/18		35,000		34,923
Public Service Electric & Gas Co.		2.250	%	09/15/26		100,000		90,313
Sempra Energy		1.625	%	10/07/19		30,000		29,433
Southern Power Co.		1.950	%	12/15/19		55,000		54,066
Southwestern Electric Power		2.750	%	10/01/26		100,000		91,752
WEC Energy Group, Inc.		3.375	%	06/15/21		50,000		50,138
								578,799
Energy — 0.7%
Cimarex Energy Co. (a)		3.900	%	05/15/27		100,000		95,985
Phillips 66 Partners LP (a)		3.550	%	10/01/26		100,000		93,479
Shell International Finance BV (a)		6.375	%	12/15/38		73,000		94,623
Valero Energy Corp. (a)		3.400	%	09/15/26		100,000		94,650
								378,737
Finance Companies — 0.2%
American Express Credit Corp.		1.700	%	10/30/19		100,000		98,447
Insurance — 1.4%
Jackson National Life Global Funding (b)(c)		2.807	%	06/11/21		50,000		50,064
Jackson National Life Global Funding (c)		2.100	%	10/25/21		50,000		47,890
Lincoln National Corp.		3.625	%	12/12/26		100,000		94,845
Met Life Global Funding I (c)		1.350	%	09/14/18		150,000		149,680
New York Life Global Funding (c)		2.350	%	07/14/26		50,000		45,456
New York Life Global Holdings (c)		2.900	%	01/17/24		100,000		96,907
Pricoa Global Funding I (c)		1.450	%	09/13/19		150,000		147,485
Principal Life Global Funding II (c)		2.375	%	11/21/21		100,000		96,769
								729,096
REITS — 1.6%
Alexandria Real Estate Equities, Inc.		3.950	%	01/15/28		100,000		96,024
American Campus Communities, Inc.		3.625	%	11/15/27		100,000		93,641
American Homes 4 Rent		4.250	%	02/15/28		100,000		95,729
Boston Properties LP		2.750	%	10/01/26		50,000		45,063
CubeSmart LP		3.125	%	09/01/26		50,000		45,970
ERP Operating LP		2.850	%	11/01/26		100,000		92,775
Life Storage LP		3.875	%	12/15/27		100,000		94,601
Realty Income Corp.		3.875	%	04/15/25		100,000		98,576
Realty Income Corp.		3.000	%	01/15/27		100,000		91,491
Spirit Realty LP		4.450	%	09/15/26		100,000		95,898
								849,768

34 DIAMOND HILL FUNDS | SEMI- ANNUAL REPORT | JUNE 30, 2018 | DIAMOND-HILL.COM

Diamond Hill Core Bond Fund
Schedule of Investments (Continued)
June 30, 2018 (Unaudited)

	Coupon			Maturity	Shares / Par Value		Fair Value
Corporate Credit — 17.8% continued
Technology — 0.2%
Apple, Inc.		3.000	%	06/20/27	$	100,000	$	95,013
Transportation — 0.9%
Continental Airlines Pass-Through Trust, Series 2012-1, Class B		6.250	%	10/11/21		36,993		37,966
CSX Corp.		4.250	%	11/01/66		100,000		86,374
Kirby Corp.		4.200	%	03/01/28		100,000		98,508
Southwest Airlines Co.		3.000	%	11/15/26		100,000		92,699
U.S. Airways Pass-Through Trust, Series 2011-1, Class A		7.125	%	04/22/25		44,279		49,308
United Airlines Pass-Through Trust, Series 2007-1, Class A		6.636	%	07/02/22		36,327		38,144
United Airlines Pass-Through Trust, Series 2013-1, Class B		5.375	%	02/15/23		40,750		41,565
								444,564
Total Corporate Credit							$	9,240,085
Government Related — 1.2%
Government Guaranteed — 0.9%
Tunisian Republic		1.416	%	08/05/21		500,000		480,350
Government Owned, No Guarantee — 0.3%
Tennessee Valley Authority (a)		4.625	%	09/15/60		125,000		149,755
Total Government Related							$	630,105
Securitized — 60.9%
ABS-Other — 5.9%
Gold Key Resorts LLC, Series 2014-A, Class A (c)		3.220	%	03/17/31		33,626		33,216
GoodGreen Trust, Series 2017-1A, Class A (c)		3.740	%	10/15/52		131,130		131,368
Hero Funding Trust, Series 2016-2A, Class A (c)		3.750	%	09/20/41		167,588		168,711
Hero Funding Trust, Series 2016-3A, Class A1 (c)		3.080	%	09/20/42		113,253		111,346
Hero Funding Trust, Series 2016-3B, Class B (c)		5.240	%	09/20/42		62,086		62,176
Hero Funding Trust, Series 2016-1R, Class A1 (c)		4.500	%	09/21/42		59,763		59,464
Hero Funding Trust, Series 2016-4A, Class A1 (c)		3.570	%	09/20/47		154,328		153,886
Hero Funding Trust, Series 2016-4B, Class B (c)		4.990	%	09/20/47		77,260		76,736
Hero Funding Trust, Series 2017-3A, Class A1 (b)(c)		3.190	%	09/20/48		139,729		135,087
Hero Funding Trust, Series 2018-1A, Class A2 (c)		4.670	%	09/20/48		149,058		153,453
LTCG Securitization, Series 2018-A, Class A (c)		4.590	%	06/15/48		100,000		100,009
MarketPlace Loan Trust, Series 2017-BS1, Class A (b)(c)		3.500	%	01/18/22		182,564		182,144
Mosaic Solar Loans LLC, Series 2017-2A, Class B (c)		4.770	%	09/20/42		100,000		100,434
Mosaic Solar Loans LLC, Series 2018-1A, Class A (c)		4.010	%	06/22/43		190,506		191,026
New Residential Advance Receivables Trust, Series 2016-T4, Class DT4 (c)		4.387	%	12/15/50		200,000		199,111
Ocwen Master Advance Receivables Trust, Series 2016-T1, Class AT1 (c)		2.521	%	08/17/48		100,000		100,069

DIAMOND HILL FUNDS | SEMI- ANNUAL REPORT | JUNE 30, 2018 | DIAMOND-HILL.COM 35

Diamond Hill Core Bond Fund
Schedule of Investments (Continued)
June 30, 2018 (Unaudited)

	Coupon			Maturity	Shares / Par Value		Fair Value
Securitized — 60.9% continued
ABS-Other — 5.9% continued
Ocwen Master Advance Receivables Trust, Series 2016-T1, Class DT1 (c)		4.246	%	08/17/48	$	100,000	$	100,150
Ocwen Master Advance Receivables Trust, Series 2017-T1, Class DT1 (c)		3.536	%	09/15/48		100,000		99,805
OnDeck Asset Securitization Trust, Series 2018-1A, Class B (c)		4.020	%	04/18/22		100,000		99,748
Renew Financial LLC, Series 2017-1A, Class A (c)		3.670	%	09/20/52		80,909		80,301
Renew Financial LLC, Series 2017-1A, Class B (b)(c)		5.750	%	09/20/52		86,911		88,361
Renew Financial LLC, Series 2017-2A, Class A (c)		3.220	%	09/22/53		91,100		88,200
SPS Servicer Advance Receivables Trust, Series 2016-T2, Class CT2 (c)		3.590	%	11/15/49		100,000		98,847
TES LLC, Series 2017-1A, Class A (c)		4.330	%	10/20/47		197,357		195,268
Westgate Resorts, Series 2018-1A, Class B (c)		3.580	%	12/20/31		241,243		239,805
								3,048,721
Agency CMBS — 4.0%
FNMA, Pool FN AE0834 (b)		3.977	%	01/01/21		40,189		40,961
FNMA, Pool FN AN2213 (b)		2.810	%	07/01/26		700,000		674,350
FNMA, Pool FN 464107		4.820	%	12/01/29		153,913		162,670
FNMA, Pool FN AM9491		3.550	%	08/01/30		182,114		182,688
FNMA, Pool FN 469130 (b)		4.870	%	10/01/41		136,368		143,823
FNMA, Pool FN AM5015 (b)		4.940	%	12/01/43		797,850		863,194
								2,067,686
Agency MBS CMO — 18.4%
FHLMC, Series 2646, Class ZH		5.000	%	07/15/33		105,247		105,065
FHLMC, Series 2814, Class PH		6.000	%	06/15/34		64,382		70,667
FHLMC, Series 4613, Class AF (1MO LIBOR + 110) (b)		3.173	%	11/15/37		169,308		173,588
FHLMC, Series 3605, Class PB		4.500	%	11/15/39		100,000		104,779
FHLMC, Series 3617, Class PC		4.500	%	12/15/39		109,000		116,624
FHLMC, Series 3740, Class FC (1MO LIBOR + 50) (b)		2.573	%	10/15/40		286,061		287,156
FHLMC, Series 3811, Class TA (b)		5.000	%	02/15/41		262,142		294,905
FHLMC, Series 3895, Class BF (1MO LIBOR + 50) (b)		2.573	%	07/15/41		190,313		192,928
FHLMC, Series 263, Class F5 (1MO LIBOR + 50) (b)		2.573	%	06/15/42		159,532		161,564
FNMA, Series 1994-4, Class ZC		6.500	%	01/25/24		53,110		56,818
FNMA, Series 2012-17, Class BC		3.500	%	03/25/27		1,000,000		1,019,772
FNMA, Series 2002-86, Class PG		6.000	%	12/25/32		131,079		144,023
FNMA, Series 2004-56, Class Z		7.500	%	03/25/34		251,356		291,245
FNMA, Series 2004-17, Class BA		6.000	%	04/25/34		204,117		238,115
FNMA, Series 2005-3, Class CG		5.500	%	02/25/35		211,000		230,745
FNMA, Series 2005-68, Class PG		5.500	%	08/25/35		75,421		80,794

36 DIAMOND HILL FUNDS | SEMI- ANNUAL REPORT | JUNE 30, 2018 | DIAMOND-HILL.COM

Diamond Hill Core Bond Fund
Schedule of Investments (Continued)
June 30, 2018 (Unaudited)

	Coupon			Maturity	Shares / Par Value		Fair Value
Securitized — 60.9% continued
Agency MBS CMO — 18.4% continued
FNMA, Series 2006-56, Class DC (1MO LIBOR + 65) (b)		2.741	%	07/25/36	$	210,169	$	211,154
FNMA, Series 2009-19, Class TD		5.000	%	08/25/36		98,803		106,940
FNMA, Series 2006-108, Class FD (1MO LIBOR + 38) (b)		2.471	%	11/25/36		162,353		162,632
FNMA, Series 2007-39, Class NB		4.250	%	05/25/37		199,872		208,771
FNMA, Series 2015-76, Class ZB (b)		4.000	%	10/25/39		153,085		152,131
FNMA, Series 2009-103, Class MB (b)		3.875	%	12/25/39		114,900		122,917
FNMA, Series 2010-2, Class LC		5.000	%	02/25/40		200,000		217,242
FNMA, Series 2011-14, Class PB		5.000	%	03/25/41		570,000		620,448
FNMA, Series 2011-57, Class PD		4.000	%	07/25/41		321,407		330,429
FNMA, Series 411, Class A3		3.000	%	08/25/42		101,708		98,436
FNMA, Series 2012-99, Class UY (b)		2.500	%	09/25/42		288,000		245,047
FNMA, Series 2013-35, Class LP		3.000	%	01/25/43		176,000		169,608
FNMA, Series 2013-35, Class CV		3.000	%	02/25/43		350,000		336,063
FNMA, Series 2013-104, Class CY		5.000	%	10/25/43		100,000		109,024
GNMA, Series 2004-49, Class MZ		6.000	%	06/20/34		302,810		345,306
GNMA, Series 2005-13, Class BG		5.000	%	02/20/35		170,000		184,899
GNMA, Series 2015-123, Class VB		3.500	%	09/20/35		100,000		100,430
GNMA, Series 2009-2, Class PA		5.000	%	12/20/38		112,281		117,310
GNMA, Series 2010-105, Class B		5.000	%	08/20/40		292,879		312,644
GNMA, Series 2011-93, Class WB		4.000	%	03/20/41		16,009		15,993
GNMA, Series 2013-22, Class GA (b)		2.500	%	10/20/41		85,149		80,083
GNMA, Series 2012-74, Class LY (b)		2.500	%	06/20/42		100,000		88,559
GNMA, Series 2012-113, Class NZ (b)		4.500	%	09/20/42		235,632		244,448
GNMA, Series 2013-37, Class F (1MO LIBOR + 27) (b)		2.354	%	03/20/43		70,816		70,163
GNMA, Series 2015-179, Class ZB		2.500	%	02/20/45		52,471		42,172
GNMA, Series 2017-H18, Class EB (b)		4.544	%	06/20/63		341,479		352,027
GNMA, Series 2014-H14, Class FA (1MO LIBOR + 50) (b)		2.383	%	07/20/64		161,191		161,947
GNMA, Series 2014-H15, Class FA (1MO LIBOR + 50) (b)		2.417	%	07/20/64		110,327		110,933
GNMA, Series 2016-H11, Class FD (12MO LIBOR + 40) (b)		3.063	%	05/20/66		301,162		305,204
GNMA, Series 2017-H16, Class DB (b)		4.597	%	08/20/67		249,415		256,781
Vendee Mortgage Trust, Series 1995-3, Class 1Z		7.250	%	09/15/25		71,836		79,058
								9,527,587
Agency MBS CMO Derivatives — 4.0%
FHLMC, Series 3994, Class EI		3.000	%	02/15/22		780,350		32,237
FHLMC, Series 3874, Class KI		4.500	%	08/15/25		437,196		22,084
FHLMC, Series 3102, Class TA		7.500	%	01/15/36		291,261		320,350
FHLMC, Series 3607, Class AO		0.000	%	04/15/36		186,386		156,178

DIAMOND HILL FUNDS | SEMI- ANNUAL REPORT | JUNE 30, 2018 | DIAMOND-HILL.COM 37

Diamond Hill Core Bond Fund
Schedule of Investments (Continued)
June 30, 2018 (Unaudited)

	Coupon			Maturity	Shares / Par Value		Fair Value
Securitized — 60.9% continued
Agency MBS CMO Derivatives — 4.0% continued
FHLMC, Series 3199, Class OC		0.000	%	08/15/36	$	311,488	$	272,971
FHLMC, Series 3318, Class AO		0.000	%	05/15/37		13,057		11,583
FHLMC, Series 379, Class 1		0.000	%	05/25/37		111,008		99,004
FHLMC, Series 3607, Class OP		0.000	%	07/15/37		147,343		125,644
FHLMC, Series 3594, Class SP (b)		3.919	%	12/15/37		45,558		47,126
FNMA, Series 2012-148, Class IA		4.000	%	01/25/28		592,213		67,902
FNMA, Series 348, Class 11		6.000	%	01/25/34		168,514		42,788
FNMA, Series 2005-45, Class PQ (1MO LIBOR + 550) (b)		3.409	%	10/25/34		565,836		36,769
FNMA, Series 390, Class 32		6.500	%	12/25/34		255,111		54,395
FNMA, Series 2006-96, Class MO		0.000	%	10/25/36		127,298		115,828
FNMA, Series 2010-44, Class CS (-1*1MO LIBOR + 655) (b)		4.459	%	05/25/40		189,156		22,623
FNMA, Series 2011-14, Class PI		5.000	%	06/25/40		288,095		32,629
FNMA, Series 2014-42, Class SN (-1*1MO LIBOR + 605) (b)		3.959	%	07/25/44		1,165,123		173,656
GNMA, Series 2010-47, Class PX (1MO LIBOR + 670) (b)		4.616	%	06/20/37		890,467		122,523
GNMA, Series 2008-38, Class ID		6.000	%	03/20/38		745,870		102,908
GNMA, Series 2008-40, Class SA (-1*1MO LIBOR + 640) (b)		4.315	%	05/16/38		101,261		13,115
GNMA, Series 2014-141, Class IE		4.000	%	08/20/43		731,846		61,627
GNMA, Series BC-H066, Class DI (b)		2.432	%	05/31/64		1,251,896		29,084
GNMA, Series 2016-H20, Class GI (b)		0.656	%	08/20/66		3,366,593		43,134
GNMA, Series 2017-H22, Class ID (b)		2.523	%	11/20/67		954,543		18,714
GNMA, Series GNH-708, Class AI (b)		1.101	%	05/20/68		2,000,000		57,500
								2,082,372
Agency MBS Passthrough — 1.4%
FHLMC, Pool FG G06085		6.500	%	09/01/38		125,278		139,520
FNMA, Pool FN AT7120		3.500	%	06/01/33		274,919		277,920
FNMA, Pool FN AS4073		4.000	%	12/01/44		302,379		310,325
								727,765
Auto Loan — 6.0%
ACC Trust, Series 2018-1, Class A (c)		3.700	%	12/21/20		135,261		135,302
American Credit Acceptance Receivables Trust, Series 2017-1, Class D (c)		3.540	%	03/13/23		110,000		109,599
California Republic Auto Receivables Trust, Series 2015-4, Class C (c)		4.230	%	09/15/22		100,000		99,702
CPS Auto Trust, Series 2016-C, Class A (c)		1.620	%	01/15/20		5,659		5,655
CPS Auto Trust, Series 2017-D, Class C (c)		3.010	%	10/17/22		100,000		98,909
CPS Auto Trust, Series 2018-B, Class D (c)		4.260	%	03/15/24		153,000		153,394
Drive Auto Receivables Trust, Series 2017-3, Class D (c)		3.530	%	12/15/23		100,000		99,626
Drive Auto Receivables Trust, Series 2018-2, Class D		4.140	%	08/15/24		100,000		100,558
DT Auto Owner Trust, Series 2016-2A, Class D (b)(c)		5.430	%	11/15/22		35,000		35,737

38 DIAMOND HILL FUNDS | SEMI- ANNUAL REPORT | JUNE 30, 2018 | DIAMOND-HILL.COM

Diamond Hill Core Bond Fund
Schedule of Investments (Continued)
June 30, 2018 (Unaudited)

	Coupon			Maturity	Shares / Par Value		Fair Value
Securitized — 60.9% continued
Auto Loan — 6.0% continued
FourSight Capital Automobile Receivables Trust, Series 2018-1, Class D (b)(c)		4.190	%	11/15/23	$	100,000	$	99,642
FourSight Capital Automobile Receivables Trust, Series 2017-1, Class D (c)		5.280	%	08/15/24		100,000		100,898
GLS Auto Receivables Trust, Series 2016-1A, Class C (c)		6.900	%	10/15/21		100,000		103,760
Hertz Fleet Lease Funding LP, Series 2017-1, Class E (c)		5.800	%	04/10/31		100,000		100,512
Hertz Fleet Lease Funding LP, Series 2018-1, Class E (c)		5.550	%	05/10/32		250,000		250,091
Honor Automobile Trust Securitization, Series 2016-1A, Class A (c)		2.940	%	11/15/19		62,694		62,702
Navistar Financial Dealer Master Trust, Series 2016-1, Class B (1MO LIBOR + 175) (b)(c)		3.841	%	09/27/21		150,000		150,283
NextGear Floorplan Master Owner Trust, Series 2018-1A, Class A1 (1MO LIBOR + 64) (b)(c)		2.713	%	02/15/23		150,000		150,231
OSCAR US Funding Trust, Series 2017-1A, Class A2B (1MO LIBOR + 80) (b)(c)		2.846	%	05/11/20		215,598		215,916
OSCAR US Funding Trust, Series 2017-2A, Class A2B (1MO LIBOR + 65) (b)(c)		2.696	%	11/10/20		191,314		191,546
OSCAR US Funding Trust, Series 2018-1A, Class A2B (1MO LIBOR + 49) (b)(c)		2.536	%	04/12/21		100,000		100,115
OSCAR US Funding Trust, Series 2014-1A, Class A4 (c)		2.550	%	12/15/21		241,774		241,225
Prestige Auto Receivables Trust, Series 2015-1, Class D (c)		3.050	%	04/15/21		100,000		99,909
Prestige Auto Receivables Trust, Series 2015-1, Class E (b)(c)		4.670	%	01/17/22		200,000		201,752
Santander Retail Auto Lease Trust, Series 2017-A, Class A4 (c)		2.370	%	01/20/22		100,000		98,600
Santander Retail Auto Lease Trust, Series 2017-A, Class C (c)		2.960	%	11/21/22		100,000		98,585
								3,104,249
Consumer — 5.2%
Arcadia Receivables Credit Trust, Series 2017-1, Class A (c)		3.250	%	06/15/23		38,651		38,741
Consumer Loan Underlying Bond Credit Trust, Series 2017-P1, Class A (c)		2.420	%	09/15/23		76,823		76,638
Consumer Loan Underlying Bond Credit Trust, Series 17-NP2, Class B (b)(c)		3.500	%	01/16/24		200,000		199,795
Consumer Loan Underlying Bond Credit Trust, Series 2018-NP1, Class B (b)(c)		3.670	%	05/15/24		100,000		99,817
Freedom Financial, Series 2018-1, Class B (c)		4.560	%	07/18/24		100,000		99,998

DIAMOND HILL FUNDS | SEMI- ANNUAL REPORT | JUNE 30, 2018 | DIAMOND-HILL.COM 39

Diamond Hill Core Bond Fund
Schedule of Investments (Continued)
June 30, 2018 (Unaudited)

	Coupon			Maturity	Shares / Par Value		Fair Value
Securitized — 60.9% continued
Consumer — 5.2% continued
LendingClub Issuance Trust, Series 2016-NP1, Class B (c)		6.500	%	06/15/22	$	238,578	$	240,797
Lendmark Funding Trust, Series 2017-1A, Class B (c)		3.770	%	01/22/24		100,000		99,894
Lendmark Funding Trust, Series 2017-1A, Class C (c)		5.410	%	01/22/24		150,000		153,694
Lendmark Funding Trust, Series 2016-2A, Class C (c)		6.640	%	04/21/25		100,000		102,723
Mariner Finance Issuance Trust, Series 2017-AA, Class B (c)		4.740	%	02/20/29		100,000		101,103
Mariner Finance Issuance Trust, Series 2017-BA, Class A (b)(c)		2.920	%	12/20/29		100,000		98,542
Mariner Finance Issuance Trust, Series 2017-BA, Class C (c)		4.570	%	12/20/29		250,000		244,808
MarketPlace Loan Trust, Series 2015-AV2, Class C (c)		7.500	%	10/15/21		112,853		113,778
Marlette Funding Trust, Series 2016-1A, Class A (c)		3.060	%	01/17/23		8,041		8,040
Marlette Funding Trust, Series 2017-1A, Class B (c)		4.114	%	03/15/24		150,000		150,875
Marlette Funding Trust, Series 2018-1A, Class B (c)		3.190	%	03/15/28		126,000		125,232
OneMain Financial Issuance Trust, Series 2016-2A, Class B (c)		5.940	%	03/20/28		250,000		252,703
Prosper Marketplace Issuance Trust, Series 2017-2A, Class B (c)		3.480	%	09/15/23		100,000		99,885
Prosper Marketplace Issuance Trust, Series 2018-1A, Class B (b)(c)		3.900	%	06/17/24		100,000		99,942
Upstart Securitization Trust, Series 2017-1, Class A (c)		2.639	%	06/20/24		89,744		89,562
Upstart Securitization Trust, Series 2017-1, Class B (c)		3.802	%	06/20/24		150,000		149,732
Upstart Securitization Trust, Series 2017-2, Class A (c)		2.508	%	03/20/25		64,605		64,464
								2,710,763
Equipment — 1.5%
Axis Equipment Finance Receivables Trust, Series 2016-1A, Class A (c)		2.210	%	11/20/21		70,678		70,258
Business Jet Securities LLC, Series 2018-1, Class A (b)(c)		4.335	%	02/15/33		111,472		111,662
Business Jet Securities LLC, Series 2018-1, Class B (b)(c)		6.048	%	02/15/33		90,968		92,243
Business Jet Securities LLC, Series 18-2, Class A (c)		4.447	%	06/15/33		250,000		249,996
Business Jet Securities LLC, Series 18-2, Class B (c)		5.437	%	06/15/33		100,000		99,997
Global SC Finance SRL, Series 2014-1A, Class A2 (c)		3.090	%	07/17/29		60,833		59,603
SCF Equipment Trust LLC, Series 2017-1A, Class A (c)		3.770	%	01/20/23		69,355		69,423
								753,182

40 DIAMOND HILL FUNDS | SEMI- ANNUAL REPORT | JUNE 30, 2018 | DIAMOND-HILL.COM

Diamond Hill Core Bond Fund
Schedule of Investments (Continued)
June 30, 2018 (Unaudited)

	Coupon			Maturity	Shares / Par Value		Fair Value
Securitized — 60.9% continued
Non Agency CMBS — 9.0%
A10 Securitization, Series 2017-1A, Class A1FL (b)(c)		2.923	%	03/15/36	$	161,601	$	160,515
A10 Securitization, Series 2017-1A, Class C (c)		4.050	%	03/15/36		250,000		245,403
A10 Securitization, Series 2017-1A, Class D (c)		4.700	%	03/15/36		250,000		243,839
American Homes 4 Rent, Series 2014-SFR2, Class D (c)		3.678	%	12/17/36		140,590		140,785
American Homes 4 Rent, Series 2015-SFR1, Class A (c)		3.467	%	04/17/52		121,523		120,323
AMSR Trust, Series 2016-SFR1, Class A (1MO LIBOR + 140) (b)(c)		3.485	%	11/17/33		100,000		100,263
B2R Mortgage Trust, Series 2015-2, Class A (c)		3.336	%	11/15/48		70,547		70,146
Bancorp Commercial Mortgage Trust (The), Series 2017-CRE2, Class C (1MO LIBOR + 235) (b)(c)		4.396	%	08/15/32		250,000		250,938
Bancorp Commercial Mortgage Trust (The), Series 2016-CRE1, Class D (1MO LIBOR + 400) (b)(c)		8.110	%	11/15/33		100,000		100,431
Barclays Commercial Mortgage Securities, Series 2016-ETC, Class A (c)		2.937	%	08/14/36		100,000		93,743
Colony American Finance Ltd., Series 2016-1, Class A (c)		2.544	%	06/15/48		148,502		145,896
Colony American Finance Ltd., Series 2016-2, Class B (c)		3.141	%	11/15/48		150,000		144,580
Commercial Mortgage Trust, Series 2014-TWC, Class B (1MO LIBOR + 160) (b)(c)		3.528	%	02/13/32		100,000		100,081
Cosmopolitan Hotel Trust, Series 2017-CSMO, Class D (1MO LIBOR + 225) (b)(c)		4.323	%	11/15/34		100,000		100,252
FCRE LLC, Series 2016-1A, Class D (1MO LIBOR + 585) (b)(c)		7.941	%	05/21/36		100,000		100,242
FirstKey Lending Trust, Series 2015-SFR1, Class A (c)		2.553	%	03/09/47		44,630		44,390
FREMF Mortgage Trust, Series 2012-K21, Class C (b)(c)		4.071	%	07/25/22		450,000		440,646
FREMF Mortgage Trust, Series 2012-K23, Class C (b)(c)		3.782	%	10/25/45		90,000		88,625
GS Mortgage Securities Trust, Series 2018-CHLL, Class D (1MO LIBOR + 165) (b)(c)		3.723	%	02/15/37		100,000		99,885
Invitation Homes Trust, Series 2018-SFR1, Class E (1MO LIBOR + 245) (b)(c)		4.085	%	03/17/37		150,000		150,434
Invitation Homes Trust, Series 2018-SFR3, Class D (1MO LIBOR + 165) (b)(c)		3.650	%	07/17/37		150,000		150,094
Prime Finance Partners III, Series 2017-3, Class C (1MO LIBOR + 250) (b)(c)		4.573	%	01/14/35		100,000		100,281
Progress Residential Trust, Series 2015-SFR2, Class A (c)		2.740	%	06/12/32		227,061		223,892

DIAMOND HILL FUNDS | SEMI- ANNUAL REPORT | JUNE 30, 2018 | DIAMOND-HILL.COM 41

Diamond Hill Core Bond Fund
Schedule of Investments (Continued)
June 30, 2018 (Unaudited)

	Coupon			Maturity	Shares / Par Value		Fair Value
Securitized — 60.9% continued
Non Agency CMBS — 9.0% continued
Progress Residential Trust, Series 2015-SFR3, Class A (c)		3.067	%	11/12/32	$	212,936	$	210,792
Progress Residential Trust, Series 2015-SFR3, Class D (c)		4.673	%	11/12/32		100,000		101,195
Progress Residential Trust, Series 2017-SFR2, Class B (c)		3.196	%	12/17/34		100,000		97,133
RAIT Trust, Series 2016-FL6, Class B (1MO LIBOR + 265) (b)(c)		4.697	%	11/13/31		100,000		100,116
ReadyCap Commercial Mortgage Trust, Series 2017-FL1, Class D (1MO LIBOR + 385) (b)(c)		5.941	%	05/25/34		250,000		251,440
Resource Capital Corp. Ltd., Series 2017-CRE5, Class B (1MO LIBOR + 200) (b)(c)		3.939	%	07/15/34		94,832		94,900
Tricon American Homes, Series 2016-SFR1, Class C (c)		3.487	%	11/17/33		100,000		98,375
Tricon American Homes, Series 2018-SFR1, Class A (c)		3.530	%	05/17/37		200,000		197,658
WF-RBS Commercial Mortgage Trust, Series 2011-C2, Class D (b)(c)		5.838	%	02/15/44		100,000		101,299
								4,668,592
Non Agency MBS CMO — 0.8%
Arroyo Mortgage Trust, Series 2018-1, Class A1 (c)		3.763	%	04/25/48		145,893		146,166
Cascade Funding Mortgage Trust, Series 2018-RM1, Class A1 (c)		4.580	%	06/25/48		150,000		149,998
Structured Asset Securities Corp., Series 2003-37A, Class 2A (b)		3.688	%	12/25/33		17,997		18,096
WaMu Mortgage Pass-Through Certificate, Series 2003-AR11, Class A6 (b)		3.365	%	10/25/33		24,384		24,714
Wells Fargo Mortgage Backed Securities, Series 2003-H, Class A1 (b)		3.620	%	09/25/33		66,635		67,508
								406,482
Student Loan — 4.7%
College Ave Student Loans, Series 2017-A, Class B (c)		4.500	%	11/26/46		100,000		99,327
College Ave Student Loans, Series 2018-A, Class B (b)(c)		4.750	%	12/26/47		100,000		99,995
College Ave Student Loans, Series 2018-A, Class C (b)(c)		5.500	%	12/26/47		100,000		96,476
Earnest Student Loan Program LLC, Series 2016-C, Class A2 (c)		2.680	%	07/25/35		115,438		112,906
Laurel Road Prime Student Loan, Series 2018-B, Class A2 (c)		3.540	%	05/26/43		150,000		150,665
Social Professional Loan Program, Series 2015-B, Class A2 (c)		2.510	%	09/27/32		113,784		112,021
Social Professional Loan Program, Series 2016-C, Class A2B (c)		2.360	%	12/27/32		260,000		252,177
Social Professional Loan Program, Series 2015-D, Class B (b)(c)		3.590	%	10/26/37		62,175		61,984

42 DIAMOND HILL FUNDS | SEMI- ANNUAL REPORT | JUNE 30, 2018 | DIAMOND-HILL.COM

Diamond Hill Core Bond Fund
Schedule of Investments (Continued)
June 30, 2018 (Unaudited)

	Coupon			Maturity	Shares / Par Value		Fair Value
Securitized — 60.9% continued
Student Loan — 4.7% continued
Social Professional Loan Program, Series 2017-B, Class CFX (c)		4.440	%	05/25/40	$	150,000	$	145,921
Social Professional Loan Program, Series 2017-E, Class A2B (b)(c)		2.720	%	11/26/40		225,000		218,302
Social Professional Loan Program, Series 2017-E, Class C (c)		4.160	%	11/26/40		700,000		684,891
Social Professional Loan Program, Series 2016-E, Class C (c)		4.430	%	10/25/41		200,000		193,437
Social Professional Loan Program, Series 2018-A, Class A1 (1MO LIBOR + 35) (b)(c)		2.441	%	02/25/42		190,059		190,059
								2,418,161
Total Securitized							$	31,515,560
Treasury — 19.5%
U.S. Treasury Notes		1.250	%	12/31/18		250,000		248,857
U.S. Treasury Notes		1.125	%	01/15/19		150,000		149,162
U.S. Treasury Notes		1.375	%	04/30/21		300,000		289,875
U.S. Treasury Notes		1.625	%	11/15/22		1,000,000		955,156
U.S. Treasury Notes		2.000	%	11/30/22		1,000,000		970,391
U.S. Treasury STRIPS (a)		0.000	%	02/15/23		700,000		615,607
U.S. Treasury Bonds		1.500	%	03/31/23		500,000		472,734
U.S. Treasury Notes		1.625	%	04/30/23		100,000		94,984
U.S. Treasury Notes		2.500	%	05/15/24		250,000		246,035
U.S. Treasury Notes		2.250	%	11/15/24		250,000		241,846
U.S. Treasury STRIPS		0.000	%	02/15/25		300,000		248,251
U.S. Treasury Notes		2.000	%	08/15/25		950,000		899,717
U.S. Treasury Notes		2.250	%	11/15/25		100,000		96,160
U.S. Treasury Notes		1.625	%	02/15/26		525,000		481,564
U.S. Treasury STRIPS (a)		0.000	%	05/15/28		1,000,000		747,964
U.S. Treasury STRIPS (a)		0.000	%	11/15/31		250,000		167,734
U.S. Treasury STRIPS		0.000	%	02/15/33		600,000		387,068
U.S. Treasury Bonds (a)		4.250	%	05/15/39		100,000		120,508
U.S. Treasury Bonds		3.875	%	08/15/40		550,000		632,113
U.S. Treasury Notes		4.250	%	11/15/40		300,000		363,316
U.S. Treasury Bonds (a)		4.750	%	02/15/41		450,000		582,574
U.S. Treasury STRIPS		0.000	%	08/15/41		150,000		74,660
U.S. Treasury Bonds		2.750	%	11/15/42		800,000		768,344
U.S. Treasury Bonds		3.750	%	11/15/43		200,000		227,078
Total Treasury							$	10,081,698

DIAMOND HILL FUNDS | SEMI- ANNUAL REPORT | JUNE 30, 2018 | DIAMOND-HILL.COM 43

Diamond Hill Core Bond Fund
Schedule of Investments (Continued)
June 30, 2018 (Unaudited)

	Shares		Fair Value
Registered Investment Companies — 8.7%
State Street Institutional Liquid Reserves Fund, Premier Class, 2.08% (d)		357,398	$	357,433
State Street Navigator Securities Lending Portfolio I, 2.06% (d)		4,165,963		4,165,963
Total Registered Investment Companies			$	4,523,396
Total Investment Securities — 108.1%
(Cost $57,368,288)			$	55,990,844
Net Other Assets (Liabilities) — (8.1)%				(4,202,976	)
Net Assets — 100.0%			$	51,787,868

^(a)  All or a portion of the security is on loan. The total fair value of the securities on loan as of June 30, 2018 was $4,082,871.

^(b)  Variable rate security. The rate shown is the effective interest rate as of June 30, 2018. The benchmark on which the rate is calculated is shown parenthetically; otherwise, the rate fluctuations may be based on index changes, prepayment of underlying positions and/or other variables.

^(c)  Restricted securities not registered under the Securities Act of 1933. The total fair value of these securities as of June 30, 2018 was $17,877,331, representing 34.5% of net assets.

^(d)  The rate shown is the effective interest rate as of June 30, 2018.

BV – Besloten Vennootschap

LIBOR – London Interbank Offered Rate

NA – National Association

NV – Naamloze Bennootschap

SA – Societe Anonyme

SCS – Sociedad en Comandita Simple

See accompanying Notes to Financial Statements.

Diamond Hill Corporate Credit Fund
Schedule of Investments
June 30, 2018 (Unaudited)

	Coupon			Maturity	Shares / Par Value		Fair Value
Collateralized Debt Obligations — 0.1%
Alesco Preferred Funding Ltd. IV, Class PNN *				03/23/35	$	621,631	$	228,227
Alesco Preferred Funding Ltd., Class PPNE *				03/23/35		336,608		117,801
Fort Sheridan ABS CDO Ltd., Series 05-1A, Class PPN2 *				11/05/41		611,948		262,359
Taberna Preferred Funding Ltd., Class PPN2 *				07/05/35		1,175,564		431,062
Total Collateralized Debt Obligations								1,039,449
Corporate Bonds — 88.0%
Automotive — 1.5%
Delphi Jersey Holdings plc (a)		5.000	%	10/01/25		1,500,000		1,430,625
Fiat Chrysler Automobiles NV (b)		5.250	%	04/15/23		9,300,000		9,369,750
								10,800,375
Banking — 7.4%
Popular, Inc.		7.000	%	07/01/19		51,037,000		51,802,555
Basic Industry — 9.1%
Axalta Coating Systems Dutch Holding (a)		4.875	%	08/15/24		6,559,000		6,509,808
Beacon Escrow Corp. (a)(b)		4.875	%	11/01/25		3,300,000		3,052,500
Century Communities, Inc.		6.875	%	05/15/22		19,660,000		20,118,078
Century Communities, Inc.		5.875	%	07/15/25		14,927,000		14,106,015
Mueller Industries, Inc. (b)		6.000	%	03/01/27		15,000,000		14,700,000
Summit Materials LLC		8.500	%	04/15/22		3,667,000		3,928,640
Valvoline, Inc.		5.500	%	07/15/24		1,155,000		1,166,550
								63,581,591
Consumer Goods — 4.9%
Clearwater Seafoods, Inc. (a)		6.875	%	05/01/25		5,850,000		5,616,000
Cooke Omega/Alpha Vessel (a)		8.500	%	12/15/22		3,117,000		3,148,170
Coty, Inc. (a)(b)		6.500	%	04/15/26		7,420,000		7,118,563
KAR Auction Services, Inc. (a)		5.125	%	06/01/25		5,134,000		4,902,970
Pilgrim's Pride Corp. (a)(b)		5.875	%	09/30/27		14,608,000		13,548,920
								34,334,623

44 DIAMOND HILL FUNDS | SEMI- ANNUAL REPORT | JUNE 30, 2018 | DIAMOND-HILL.COM

Diamond Hill Corporate Credit Fund
Schedule of Investments (Continued)
June 30, 2018 (Unaudited)

	Coupon			Maturity	Shares / Par Value		Fair Value
Corporate Bonds — 88.0% continued
Energy — 8.8%
Centennial Resource Production LLC (a)		5.375	%	01/15/26	$	1,606,000	$	1,561,835
Diamondback Energy, Inc.		4.750	%	11/01/24		3,625,000		3,534,375
Diamondback Energy, Inc. (b)		5.375	%	05/31/25		2,407,000		2,407,000
Diamondback Energy, Inc. (a)		5.375	%	05/31/25		2,935,000		2,927,663
Energen Corp.		4.625	%	09/01/21		2,846,000		2,831,770
Energen Corp.		7.125	%	02/15/28		14,821,000		15,969,628
Oceaneering International, Inc. (b)		6.000	%	02/01/28		4,950,000		4,915,060
Parsley Energy LLC (a)		5.375	%	01/15/25		75,000		74,438
Resolute Energy Corp.		8.500	%	05/01/20		5,167,000		5,163,770
Welltec A/S (a)(b)		9.500	%	12/01/22		21,525,000		21,632,625
								61,018,164
Financial Services — 13.2%
Alliance Data Systems Corp. (a)(b)		5.375	%	08/01/22		30,142,000		30,288,941
Credit Acceptance Corp. (b)		6.125	%	02/15/21		3,550,000		3,563,313
Credit Acceptance Corp.		7.375	%	03/15/23		6,430,000		6,638,975
Nationstar Mortgage/Capital Corp.		7.875	%	10/01/20		10,805,000		10,845,519
Nationstar Mortgage/Capital Corp. (b)		6.500	%	07/01/21		3,605,000		3,594,906
Nationstar Mortgage/Capital Corp.		6.500	%	06/01/22		4,101,000		4,070,243
Provident Funding Associates LP (a)		6.375	%	06/15/25		4,775,000		4,648,701
Quicken Loans, Inc. (a)		5.750	%	05/01/25		11,415,000		11,172,773
USIS Merger Sub, Inc. (a)		6.875	%	05/01/25		10,073,000		10,022,635
Vantiv, Inc. (a)(b)		4.375	%	11/15/25		7,375,000		7,037,373
								91,883,379
Health Care — 2.6%
Davita Healthcare Partners, Inc. (b)		5.125	%	07/15/24		3,479,000		3,374,630
HCA Holdings, Inc.		7.750	%	07/15/36		3,583,000		3,780,065
Kindred Healthcare, Inc.		8.750	%	01/15/23		5,521,000		5,883,343
Teva Pharmaceuticals Finance Netherlands III BV (b)		6.000	%	04/15/24		5,030,000		5,023,091
								18,061,129
Insurance — 3.8%
MGIC Investment Corp.		5.750	%	08/15/23		8,142,000		8,304,840
Radian Group, Inc.		4.500	%	10/01/24		225,000		217,125
Wand Merger Corp. (a)		8.125	%	07/15/23		14,320,000		14,570,600
Wand Merger Corp. (a)		9.125	%	07/15/26		3,000,000		3,000,000
								26,092,565
Leisure — 2.9%
CCM Merger, Inc. (a)		6.000	%	03/15/22		11,631,000		11,838,031
Golden Nugget, Inc. (a)		6.750	%	10/15/24		2,225,000		2,225,401
Station Casinos LLC (a)(b)		5.000	%	10/01/25		2,095,000		1,969,300
Wynn Las Vegas LLC (a)(b)		5.500	%	03/01/25		3,917,000		3,848,453
								19,881,185
Media — 11.4%
Altice SA (a)(b)		7.750	%	05/15/22		7,485,000		7,241,738
Altice SA (a)(b)		8.125	%	01/15/24		6,450,000		6,417,750
Cimpress NV (a)		7.000	%	06/15/26		29,200,000		29,820,499
CSC Holdings LLC (a)(b)		10.125	%	01/15/23		6,777,000		7,471,643
CSC Holdings LLC (a)		10.875	%	10/15/25		3,385,000		3,902,228
Liberty Interactive LLC (b)		8.250	%	02/01/30		5,347,000		5,671,296
Netflix, Inc. (b)		5.875	%	02/15/25		4,025,000		4,128,805
Quad Graphics, Inc.		7.000	%	05/01/22		2,380,000		2,427,600
Townsquare Media, Inc. (a)(b)		6.500	%	04/01/23		13,256,000		11,930,399
								79,011,958
Real Estate — 3.6%
Crescent Communities, Inc. (a)		8.875	%	10/15/21		9,191,000		9,696,505
iStar Financial, Inc.		4.625	%	09/15/20		7,430,000		7,318,550
Kennedy Wilson, Inc. (b)		5.875	%	04/01/24		8,512,000		8,256,640
								25,271,695

DIAMOND HILL FUNDS | SEMI- ANNUAL REPORT | JUNE 30, 2018 | DIAMOND-HILL.COM 45

Diamond Hill Corporate Credit Fund
Schedule of Investments (Continued)
June 30, 2018 (Unaudited)

	Coupon			Maturity	Shares / Par Value		Fair Value
Corporate Bonds — 88.0% continued
Retail — 6.9%
Arch Merger Sub, Inc. (a)(b)		8.500	%	09/15/25	$	14,332,000	$	13,364,590
FirstCash, Inc.		5.375	%	06/01/24		8,619,000		8,597,453
L Brands, Inc.		6.875	%	11/01/35		2,095,000		1,864,550
Nathan's Famous, Inc. (a)		6.625	%	11/01/25		15,794,000		15,951,939
Signet UK Finance plc (b)		4.700	%	06/15/24		8,178,000		7,681,403
Wolverine World Wide (a)		5.000	%	09/01/26		602,000		571,900
								48,031,835
Services — 2.4%
Diebold, Inc. (b)		8.500	%	04/15/24		12,330,000		11,810,043
Laureate Education, Inc. (a)		8.250	%	05/01/25		11,000		11,736
Matthews International Corp. (a)		5.250	%	12/01/25		2,605,000		2,494,288
Ritchie Bros. Auctioneers, Inc. (a)		5.375	%	01/15/25		2,419,000		2,346,430
								16,662,497
Technology & Electronics — 2.2%
Conduent, Inc. (a)		10.500	%	12/15/24		8,075,000		9,659,720
First Data Corp. (a)		7.000	%	12/01/23		2,530,000		2,635,197
Symantec Corp. (a)(b)		5.000	%	04/15/25		2,925,000		2,832,860
								15,127,777
Telecommunications — 6.5%
CB Escrow Corp. (a)		8.000	%	10/15/25		4,247,000		3,960,328
Cincinnati Bell, Inc. (a)(b)		7.000	%	07/15/24		9,736,000		8,884,100
Cogent Communications, Inc. (a)		5.625	%	04/15/21		22,545,000		22,685,906
Frontier Communications Corp. (a)(b)		8.500	%	04/01/26		9,800,000		9,457,000
								44,987,334
Transportation — 0.8%
Allegiant Travel Co.		5.500	%	07/15/19		3,425,000		3,442,125
Mobile Mini, Inc.		5.875	%	07/01/24		2,066,000		2,091,825
United Airlines Pass-Through Trust, Series 2013-1		5.375	%	02/15/23		258,086		263,247
								5,797,197
Total Corporate Bonds							$	612,345,859

	Shares		Fair Value
Registered Investment Companies — 30.6%
Diamond Hill Short Duration Total Return Fund, Class Y (c)		2,625,976	$	26,469,842
State Street Institutional Liquid Reserves Fund, Premier Class, 2.08% (d)		60,794,342		60,800,421
State Street Navigator Securities Lending Portfolio I, 2.06% (d)		125,397,283		125,397,283
Total Registered Investment Companies			$	212,667,546
Total Investment Securities — 118.7%
(Cost $834,137,610)			$	826,052,854
Net Other Assets (Liabilities) — (18.7)%				(130,320,649	)
Net Assets — 100.0%			$	695,732,205

^(a)  Restricted securities not registered under the Securities Act of 1933. The total fair value of these securities as of June 30, 2018 was $343,483,081, representing 49.4% of net assets.

^(b)  All or a portion of the security is on loan. The total fair value of the securities on loan as of June 30, 2018 was $122,663,845.

^(c)  Affiliated Fund.

^(d)  The rate shown is the effective interest rate as of June 30, 2018.

46 DIAMOND HILL FUNDS | SEMI- ANNUAL REPORT | JUNE 30, 2018 | DIAMOND-HILL.COM

Diamond Hill Corporate Credit Fund
Schedule of Investments (Continued)
June 30, 2018 (Unaudited)

* 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. IV, Class PNN		December-04	$	621,631	$	228,227		0.03	%
Alesco Preferred Funding Ltd., Class PNNE		March-05		336,608		117,801		0.02	%
Fort Sheridan ABS CDO Ltd., Series 05-1A, Class PPN2		March-05		515,236		262,359		0.04	%
Taberna Preferred Funding Ltd., Class PPN2		March-05		1,044,567		431,062		0.06	%
			$	2,518,042	$	1,039,449		0.15	%

A/S – Aktieselskab

BV – Besloten Vennootschap

NV – Naamloze Vennootschap

plc – Public Limited Company

SA – Societe Anonyme

See accompanying Notes to Financial Statements.

Diamond Hill High Yield Fund
Schedule of Investments
June 30, 2018 (Unaudited)

	Coupon			Maturity	Shares / Par Value		Fair Value
Corporate Bonds — 96.1%
ABS-Other — 0.5%
Access Point Financial, Series 2017-A (a)		5.820	%	04/15/29	$	250,000	$	248,399
Auto Loan — 1.7%
CIG Auto Receivables Trust, Series 2017-1A (a)		5.330	%	12/16/24		400,000		399,039
CPS Auto Trust, Series 2017-A (a)		7.070	%	04/15/24		250,000		261,579
Honor Automobile Trust Securitization, Series 2016-1A (a)		8.050	%	11/15/22		200,000		203,650
								864,268
Automotive — 1.8%
Delphi Jersey Holdings plc (a)		5.000	%	10/01/25		250,000		238,438
Fiat Chrysler Automobiles NV (b)		5.250	%	04/15/23		650,000		654,875
								893,313
Banking — 6.8%
Popular, Inc.		7.000	%	07/01/19		3,350,000		3,400,250
Basic Industry — 8.8%
Axalta Coating Systems Dutch Holding (a)		4.875	%	08/15/24		550,000		545,875
Beacon Escrow Corp. (a)(b)		4.875	%	11/01/25		600,000		555,000
Century Communities, Inc.		6.875	%	05/15/22		325,000		332,572
Century Communities, Inc.		5.875	%	07/15/25		1,700,000		1,606,500
Mueller Industries, Inc. (b)		6.000	%	03/01/27		1,250,000		1,225,000
Valvoline, Inc.		5.500	%	07/15/24		100,000		101,000
								4,365,947
Capital Goods — 0.3%
Welbilt, Inc.		9.500	%	02/15/24		151,000		166,289

DIAMOND HILL FUNDS | SEMI- ANNUAL REPORT | JUNE 30, 2018 | DIAMOND-HILL.COM 47

Diamond Hill High Yield Fund
Schedule of Investments (Continued)
June 30, 2018 (Unaudited)

	Coupon			Maturity	Shares / Par Value		Fair Value
Corporate Bonds — 96.1% continued
Consumer — 1.2%
Arcadia Receivables Credit Trust, Series 2017-1 (a)		5.500	%	06/15/23	$	223,000	$	224,444
Cascade Funding Mortgage Trust, Series 2018-RM1 (a)		5.875	%	06/25/48		200,000		200,000
Upstart Securitization Trust, Series 2017-1 (a)		6.350	%	06/20/24		150,000		153,583
								578,027
Consumer Goods — 7.0%
Clearwater Seafoods, Inc. (a)		6.875	%	05/01/25		450,000		432,000
Cooke Omega/Alpha Vessel (a)		8.500	%	12/15/22		350,000		353,500
Coty, Inc. (a)(b)		6.500	%	04/15/26		925,000		887,422
KAR Auction Services, Inc. (a)		5.125	%	06/01/25		525,000		501,375
Pilgrim's Pride Corp. (a)(b)		5.875	%	09/30/27		1,400,000		1,298,500
								3,472,797
Energy — 14.0%
Centennial Resource Production LLC (a)		5.375	%	01/15/26		400,000		389,000
Diamondback Energy, Inc.		4.750	%	11/01/24		273,000		266,175
Diamondback Energy, Inc. (b)		5.375	%	05/31/25		375,000		375,000
Diamondback Energy, Inc. (a)		5.375	%	05/31/25		175,000		174,563
Energen Corp.		7.125	%	02/15/28		2,815,000		3,033,163
Oceaneering International, Inc.		6.000	%	02/01/28		300,000		297,882
Resolute Energy Corp.		8.500	%	05/01/20		600,000		599,625
Welltec A/S (a)		9.500	%	12/01/22		1,825,000		1,834,125
								6,969,533
Equipment — 0.2%
Ascentium Equipment Receivables Trust, Series 2016-2A (a)(c)		6.790	%	10/10/24		100,000		104,552
Financial Services — 9.3%
Alliance Data Systems Corp. (a)(b)		5.375	%	08/01/22		1,650,000		1,658,044
Credit Acceptance Corp.		6.125	%	02/15/21		300,000		301,125
Credit Acceptance Corp.		7.375	%	03/15/23		525,000		542,063
Nationstar Mortgage/Capital Corp.		7.875	%	10/01/20		150,000		150,562
Provident Funding Associates LP (a)		6.375	%	06/15/25		275,000		267,726
Quicken Loans, Inc. (a)		5.750	%	05/01/25		850,000		831,963
USIS Merger Sub, Inc. (a)		6.875	%	05/01/25		575,000		572,125
Vantiv, Inc. (a)		4.375	%	11/15/25		325,000		310,121
								4,633,729
Health Care — 3.1%
Davita Healthcare Partners, Inc.		5.125	%	07/15/24		225,000		218,250
HCA Holdings, Inc.		7.750	%	07/15/36		675,000		712,125
Kindred Healthcare, Inc.		8.750	%	01/15/23		390,000		415,596
Teva Pharmaceuticals Finance Netherlands III BV (b)		6.000	%	04/15/24		200,000		199,725
								1,545,696
Insurance — 5.4%
MGIC Investment Corp.		5.750	%	08/15/23		350,000		357,000
Radian Group, Inc.		4.500	%	10/01/24		75,000		72,375
Wand Merger Corp. (a)		8.125	%	07/15/23		250,000		254,375
Wand Merger Corp. (a)		9.125	%	07/15/26		2,000,000		2,000,000
								2,683,750
Leisure — 3.0%
CCM Merger, Inc. (a)		6.000	%	03/15/22		450,000		458,010
Golden Nugget, Inc. (a)		6.750	%	10/15/24		350,000		350,063
Station Casinos LLC (a)		5.000	%	10/01/25		325,000		305,500
Wynn Las Vegas LLC (a)		5.500	%	03/01/25		375,000		368,437
								1,482,010

48 DIAMOND HILL FUNDS | SEMI- ANNUAL REPORT | JUNE 30, 2018 | DIAMOND-HILL.COM

Diamond Hill High Yield Fund
Schedule of Investments (Continued)
June 30, 2018 (Unaudited)

	Coupon			Maturity	Shares / Par Value		Fair Value
Corporate Bonds — 96.1% continued
Media — 11.8%
Altice SA (a)(b)		7.750	%	05/15/22	$	450,000	$	435,375
Altice SA (a)(b)		8.125	%	01/15/24		550,000		547,250
Cimpress NV (a)		7.000	%	06/15/26		2,500,000		2,553,125
CSC Holdings LLC (a)		10.875	%	10/15/25		375,000		432,300
Graham Holdings Co. (a)(b)		5.750	%	06/01/26		250,000		252,500
Liberty Interactive LLC		8.250	%	02/01/30		125,000		132,581
Netflix, Inc.		5.875	%	02/15/25		200,000		205,158
Netflix, Inc. (a)		5.875	%	11/15/28		200,000		201,940
Quad Graphics, Inc.		7.000	%	05/01/22		200,000		204,000
Townsquare Media, Inc. (a)(b)		6.500	%	04/01/23		1,025,000		922,500
								5,886,729
Non Agency CMBS — 0.5%
Fort CRE LLC, Series 2016-1A (1MO LIBOR + 800) (a)(c)		9.213	%	05/21/36		250,000		252,038
Real Estate — 2.7%
Crescent Communities, Inc. (a)		8.875	%	10/15/21		537,000		566,535
Kennedy Wilson, Inc.		5.875	%	04/01/24		800,000		776,000
								1,342,535
Retail — 7.2%
Arch Merger Sub, Inc. (a)(b)		8.500	%	09/15/25		1,100,000		1,025,750
FirstCash, Inc.		5.375	%	06/01/24		750,000		748,125
L Brands, Inc.		6.875	%	11/01/35		325,000		289,250
Nathan's Famous, Inc. (a)		6.625	%	11/01/25		1,250,000		1,262,500
Wolverine World Wide (a)		5.000	%	09/01/26		245,000		232,750
								3,558,375
Services — 2.5%
Diebold, Inc.		8.500	%	04/15/24		600,000		574,698
Matthews International Corp. (a)		5.250	%	12/01/25		275,000		263,312
Ritchie Bros. Auctioneers, Inc. (a)		5.375	%	01/15/25		425,000		412,250
								1,250,260
Technology & Electronics — 1.9%
Conduent, Inc. (a)		10.500	%	12/15/24		275,000		328,969
Match Group, Inc. (a)		5.000	%	12/15/27		106,000		98,580
Symantec Corp. (a)		5.000	%	04/15/25		550,000		532,675
								960,224
Telecommunications — 4.6%
CB Escrow Corp. (a)		8.000	%	10/15/25		925,000		862,563
Cincinnati Bell, Inc. (a)		7.000	%	07/15/24		125,000		114,062
Cogent Communications, Inc. (a)		5.625	%	04/15/21		500,000		503,125
Frontier Communications Corp. (a)(b)		8.500	%	04/01/26		850,000		820,250
								2,300,000
Transportation — 1.8%
Allegiant Travel Co.		5.500	%	07/15/19		250,000		251,250
Continental Airlines Pass-Through Trust, Series 2012-1		6.250	%	10/11/21		38,966		39,990
Continental Airlines Pass-Through Trust, Series 2012-2		5.500	%	04/29/22		123,955		126,347
Mobile Mini, Inc.		5.875	%	07/01/24		225,000		227,812
U.S. Airways Pass-Through Trust, Series 2012-2		6.750	%	12/03/22		225,008		237,339
								882,738
Total Corporate Bonds							$	47,841,459

DIAMOND HILL FUNDS | SEMI- ANNUAL REPORT | JUNE 30, 2018 | DIAMOND-HILL.COM 49

Diamond Hill High Yield Fund
Schedule of Investments (Continued)
June 30, 2018 (Unaudited)

	Shares		Fair Value
Registered Investment Companies — 17.7%
State Street Institutional Liquid Reserves Fund, Premier Class, 2.08% (d)	$	2,317,907	$	2,318,139
State Street Navigator Securities Lending Portfolio I, 2.06% (d)		6,508,048		6,508,048
Total Registered Investment Companies			$	8,826,187
Total Investment Securities — 113.8%
(Cost $56,939,161)			$	56,667,646
Net Other Assets (Liabilities) — (13.8)%				(6,889,856	)
Net Assets — 100.0%			$	49,777,790

^(a)  Restricted securities not registered under the Securities Act of 1933. The total fair value of these securities as of June 30, 2018 was $28,753,358, representing 57.8% of net assets.

^(b)  All or a portion of the security is on loan. The total fair value of the securities on loan as of June 30, 2018 was $6,374,026.

^(c)  Variable rate security. The rate shown is the effective interest rate as of June 30, 2018. The benchmark on which the rate is calculated is shown parenthetically; otherwise, the rate fluctuations may be based on index changes, prepayment of underlying positions and/or other variables.

^(d)  The rate shown is the effective interest rate as of June 30, 2018.

A/S – Aktieselskab

BV – Besloten Vennootschap

LIBOR – London Interbank Offered Rate

NV – Naamloze Vennootschap

plc – Public Limited Company

SA – Societe Anonyme

See accompanying Notes to Financial Statements.

50 DIAMOND HILL FUNDS | SEMI- ANNUAL REPORT | JUNE 30, 2018 | DIAMOND-HILL.COM

Diamond Hill Funds
Tabular Presentation of Schedules of Investments
June 30, 2018 (Unaudited)

Diamond Hill Small Cap Fund
Sector Allocation	% of Net Assets
Financials	24.7%
Industrials	17.7%
Consumer Discretionary	14.2%
Real Estate	6.6%
Consumer Staples	5.3%
Information Technology	5.2%
Energy	3.9%
Health Care	3.4%
Utilities	2.2%
Telecommunication Services	0.6%
Materials	0.5%
Registered Investment Companies	23.5%
Other
Net Other Assets (Liabilities)	-7.8%
	100.0%
Russell 2000 Index Sector Allocation	% of Index
Financials	18.0%
Industrials	14.9%
Consumer Discretionary	13.4%
Real Estate	7.1%
Consumer Staples	2.8%
Information Technology	14.8%
Energy	5.0%
Health Care	15.7%
Utilities	3.3%
Telecommunication Services	0.7%
Materials	4.3%
	100.0%

Diamond Hill Small-Mid Cap Fund
Sector Allocation	% of Net Assets
Financials	27.4%
Consumer Discretionary	13.3%
Industrials	11.0%
Real Estate	8.6%
Information Technology	8.5%
Consumer Staples	7.7%
Health Care	5.1%
Energy	3.6%
Materials	3.3%
Utilities	3.2%
Registered Investment Companies	15.6%
Other
Net Other Assets (Liabilities)	-7.3%
	100.0%
Russell 2500 Index Sector Allocation	% of Index
Financials	15.9%
Consumer Discretionary	13.4%
Industrials	15.0%
Real Estate	9.6%
Information Technology	15.9%
Consumer Staples	2.8%
Health Care	12.7%
Energy	4.9%
Materials	5.8%
Utilities	3.5%
Telecommunication Services	0.5%
	100.0%

DIAMOND HILL FUNDS | SEMI- ANNUAL REPORT | JUNE 30, 2018 | DIAMOND-HILL.COM 51

Diamond Hill Funds
Tabular Presentation of Schedules of Investments (Continued)
June 30, 2018 (Unaudited)

Diamond Hill Mid Cap Fund
Sector Allocation	% of Net Assets
Financials	28.2%
Consumer Discretionary	16.0%
Industrials	11.9%
Consumer Staples	8.0%
Real Estate	7.2%
Information Technology	6.0%
Health Care	4.6%
Energy	4.0%
Materials	3.4%
Utilities	2.4%
Registered Investment Companies	12.1%
Other
Net Other Assets (Liabilities)	-3.8%
	100%
Russell Midcap Index Sector Allocation	% of Index
Financials	13.8%
Consumer Discretionary	14.3%
Industrials	13.5%
Consumer Staples	4.5%
Real Estate	8.9%
Information Technology	18.2%
Health Care	9.6%
Energy	5.3%
Materials	5.5%
Utilities	6.0%
Telecommunication Services	0.4%
	100.0%

Diamond Hill Large Cap Fund
Sector Allocation	% of Net Assets
Financials	27.0%
Consumer Discretionary	16.0%
Health Care	14.9%
Information Technology	13.5%
Consumer Staples	9.2%
Industrials	8.8%
Energy	5.4%
Materials	3.8%
Registered Investment Companies	2.5%
Other
Net Other Assets (Liabilities)	-1.1%
	100.0%
Russell 1000 Index Sector Allocation	% of Index
Financials	14.0%
Consumer Discretionary	13.6%
Health Care	13.6%
Information Technology	25.4%
Consumer Staples	6.0%
Industrials	9.9%
Energy	6.1%
Materials	3.0%
Real Estate	3.6%
Utilities	2.9%
Telecommunication Services	1.9%
	100.0%

52 DIAMOND HILL FUNDS | SEMI- ANNUAL REPORT | JUNE 30, 2018 | DIAMOND-HILL.COM

Diamond Hill Funds
Tabular Presentation of Schedules of Investments (Continued)
June 30, 2018 (Unaudited)

Diamond Hill All Cap Select Fund
Sector Allocation	% of Net Assets
Financials	31.8%
Industrials	15.9%
Consumer Discretionary	15.8%
Consumer Staples	10.3%
Information Technology	8.5%
Health Care	7.7%
Energy	3.4%
Materials	1.8%
Real Estate	1.2%
Registered Investment Companies	5.8%
Other
Net Other Assets (Liabilities)	-2.2%
	100.0%
Russell 3000 Index Sector Allocation	% of Index
Financials	14.3%
Industrials	10.2%
Consumer Discretionary	13.6%
Consumer Staples	5.8%
Information Technology	24.7%
Health Care	13.8%
Energy	6.0%
Materials	3.1%
Real Estate	3.8%
Utilities	2.9%
Telecommunication Services	1.8%
	100.0%

Diamond Hill Long-Short Fund
Long Portfolio Sector Allocation	% of Net Assets
Financials	23.3%
Information Technology	14.5%
Consumer Discretionary	13.3%
Industrials	11.6%
Consumer Staples	6.9%
Health Care	6.4%
Energy	4.1%
Materials	2.8%
Telecommunication Services	1.9%
Registered Investment Companies	34.1%
Short Portfolio Sector Allocation	% of Net Assets
Consumer Discretionary	-8.2%
Information Technology	-2.9%
Financials	-2.8%
Health Care	-2.2%
Industrials	-2.1%
Utilities	-1.7%
Energy	-1.0%
Materials	-0.2%
Other
Segregated Cash With Custodian	26.5%
Net Other Assets (Liabilities)	-24.3%
	100.0%
Russell 1000 Index Sector Allocation	% of Index
Financials	14.0%
Information Technology	25.4%
Consumer Discretionary	13.6%
Industrials	9.9%
Consumer Staples	6.0%
Health Care	13.6%
Energy	6.1%
Materials	3.0%
Telecommunication Services	1.9%
Real Estate	3.6%
Utilities	2.9%
	100.0%

DIAMOND HILL FUNDS | SEMI- ANNUAL REPORT | JUNE 30, 2018 | DIAMOND-HILL.COM 53

Diamond Hill Funds
Tabular Presentation of Schedules of Investments (Continued)
June 30, 2018 (Unaudited)

Diamond Hill Research Opportunities Fund
Long Portfolio Sector Allocation	% of Net Assets
Consumer Discretionary	24.1%
Industrials	21.5%
Financials	18.1%
Health Care	15.8%
Information Technology	14.7%
Telecommunication Services	4.8%
Materials	4.0%
Real Estate	3.5%
Energy	2.3%
Consumer Staples	1.0%
Registered Investment Companies	28.1%
Short Portfolio Sector Allocation	% of Net Assets
Consumer Discretionary	-6.7%
Information Technology	-4.9%
Financials	-3.4%
Health Care	-2.2%
Industrials	-1.5%
Telecommunication Services	-1.1%
Utilities	-0.6%
Energy	-0.3%
Real Estate	-0.3%
Consumer Staples	-0.2%
Materials	-0.2%
Other
Segregated Cash With Custodian	11.6%
Net Other Assets (Liabilities)	-28.1%
	100.0%
Russell 3000 Index Sector Allocation	% of Index
Consumer Discretionary	13.6%
Industrials	10.2%
Financials	14.3%
Health Care	13.8%
Information Technology	24.7%
Telecommunication Services	1.8%
Materials	3.1%
Real Estate	3.8%
Energy	6.0%
Consumer Staples	5.8%
Utilities	2.9%
	100.0%

Diamond Hill Financial Long-Short Fund
Long Portfolio Sector Allocation	% of Net Assets
Banks, Thrifts & Mortgage Finance	39.0%
Insurance	20.5%
Equity Real Estate Investment Trusts (REITs)	14.3%
Capital Markets	9.2%
Consumer Financial Services	7.2%
Diversified Financial Services	5.7%
IT Services	3.8%
Registered Investment Companies	28.7%
Short Portfolio Sector Allocation	% of Net Assets
Insurance	-5.9%
Banks, Thrifts & Mortgage Finance	-3.2%
Equity Real Estate Investment Trusts (REITs)	-2.9%
IT Services	-1.6%
Other
Segregated Cash With Custodian	13.1%
Net Other Assets (Liabilities)	-27.9%
	100.0%
Russell 3000 Financials Index Sector Allocation	% of Index
Banks, Thrifts & Mortgage Finance	31.2%
Insurance	12.3%
REITs & Real Estate Management	19.4%
Capital Markets	13.4%
Consumer Financial Services	3.5%
Diversified Financial Services	6.5%
IT Services	13.7%
	100.0%

54 DIAMOND HILL FUNDS | SEMI- ANNUAL REPORT | JUNE 30, 2018 | DIAMOND-HILL.COM

Diamond Hill Funds
Tabular Presentation of Schedules of Investments (Continued)
June 30, 2018 (Unaudited)

Diamond Hill Global Fund
Sector Allocation	% of Net Assets
Financials	30.5%
Consumer Discretionary	14.5%
Industrials	13.8%
Health Care	12.6%
Information Technology	10.9%
Consumer Staples	9.8%
Materials	3.3%
Energy	2.4%
Telecommunication Services	1.3%
Registered Investment Companies	5.7%
Other
Net Other Assets (Liabilities)	-4.8%
	100.0%
Morningstar Global Markets Index	% of Index
Financials	17.3%
Consumer Discretionary	12.7%
Industrials	11.7%
Health Care	11.0%
Information Technology	17.9%
Consumer Staples	7.6%
Materials	5.7%
Energy	6.5%
Telecommunication Services	2.5%
Real Estate	4.1%
Utilities	3.0%
	100.0%

Diamond Hill Short Duration Total Return Fund
Sector Allocation	% of Net Assets
Securitized	86.6%
Corporate Credit	7.7%
Treasury	5.3%
Registered Investment Companies	4.1%
Other
Net Other Assets (Liabilities)	-3.7%
	100.0%
Bloomberg Barclays U.S. 1-3 Yr. Gov./Credit Index Sector Allocation	% of Index
Treasury	63.0%
Corporate Credit	24.4%
Non-Corporate Credit	8.0%
Agency	4.6%
	100.0%

Diamond Hill Core Bond Fund
Sector Allocation	% of Net Assets
Securitized	60.9%
Treasury	19.5%
Corporate Credit	17.8%
Government Related	1.2%
Registered Investment Companies	8.7%
Other
Net Other Assets (Liabilities)	-8.1%
	100.0%
Bloomberg Barclays U.S. Aggregate Index Sector Allocation	% of Index
Treasury	37.8%
Agency RMBS/CMBS	28.9%
Corporate Credit	25.0%
Non-Corporate Credit	5.0%
Agency	1.6%
Non-Agency RMBS/CMBS	1.2%
Asset-Backed Securities	0.5%
	100.0%

DIAMOND HILL FUNDS | SEMI- ANNUAL REPORT | JUNE 30, 2018 | DIAMOND-HILL.COM 55

Diamond Hill Funds
Tabular Presentation of Schedules of Investments (Continued)
June 30, 2018 (Unaudited)

Diamond Hill Corporate Credit Fund
Sector Allocation	% of Net Assets
Financial Services	13.2%
Media	11.4%
Basic Industry	9.1%
Energy	8.8%
Banking	7.4%
Retail	6.9%
Telecommunications	6.5%
Consumer Goods	4.9%
Insurance	3.8%
Real Estate	3.6%
Leisure	2.9%
Health Care	2.6%
Services	2.4%
Technology & Electronics	2.2%
Automotive	1.5%
Transportation	0.8%
Registered Investment Companies	30.6%
Other
Collateralized Debt Obligations	0.1%
Net Other Assets (Liabilities)	-18.7%
	100.0%
ICE BofA ML U.S. Corporate & High Yield Index Sector Allocation	% of Index
Financial Services	2.6%
Media	4.8%
Basic Industry	5.6%
Energy	11.9%
Banking	18.9%
Retail	3.8%
Telecommunications	5.6%
Consumer Goods	5.7%
Insurance	3.8%
Real Estate	2.0%
Leisure	0.9%
Health Care	8.9%
Services	1.8%
Technology & Electronics	7.4%
Automotive	2.7%
Transportation	1.9%
Utilities	6.9%
Capital Goods	4.8%
	100.0%

Diamond Hill High Yield Fund
Sector Allocation	% of Net Assets
Energy	14.0%
Media	11.8%
Financial Services	9.3%
Basic Industry	8.8%
Retail	7.2%
Consumer Goods	7.0%
Banking	6.8%
Insurance	5.4%
Telecommunications	4.6%
Health Care	3.1%
Leisure	3.0%
Real Estate	2.7%
Services	2.5%
Technology & Electronics	1.9%
Automotive	1.8%
Transportation	1.8%
Auto Loan	1.7%
Consumer	1.2%
ABS - Other	0.5%
Non Agency CMBS	0.5%
Capital Goods	0.3%
Equipment	0.2%
Registered Investment Companies	17.7%
Other
Net Other Assets (Liabilities)	-13.8%
	100.0%
ICE BofA ML U.S. High Yield Index Sector Allocation	% of Index
Energy	14.0%
Media	11.5%
Financial Services	3.8%
Basic Industry	12.1%
Retail	4.8%
Consumer Goods	2.5%
Banking	3.3%
Insurance	1.0%
Telecommunications	9.7%
Health Care	9.8%
Leisure	4.4%
Real Estate	0.6%
Services	5.3%
Technology & Electronics	6.1%
Automotive	2.3%
Transportation	0.9%
Capital Goods	5.4%
Utilities	2.5%
	100.0%

56 DIAMOND HILL FUNDS | SEMI- ANNUAL REPORT | JUNE 30, 2018 | DIAMOND-HILL.COM

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DIAMOND HILL FUNDS | SEMI- ANNUAL REPORT | JUNE 30, 2018 | DIAMOND-HILL.COM 57

Diamond Hill Funds
Statements of Assets & Liabilities
June 30, 2018 (Unaudited)

	Small Cap Fund			Small-Mid Cap Fund			Mid Cap Fund
Assets
Investment in unaffiliated securities, at cost	$	1,132,675,617		$	2,157,244,344		$	110,665,387
Investment in affiliated securities, at cost		52,490,199			47,994,072			2,201,262
Investment securities, at fair value — including $109,305,683, $181,810,228, $4,535,346, $63,670,632, $3,336,788, $925,279,024, $17,004,662, $8,649,719, $512,423 and $9,689,242 of securities loaned	$	1,514,790,655		$	2,619,477,604		$	125,412,278
Investment in affiliated securities, at fair value		52,520,434			47,992,021			2,196,911
Cash		—			—			—
Cash deposits with custodian for securities sold short		—			—			—
Receivable for fund shares issued		440,207			5,626,197			128,720
Receivable for dividends and interest		1,827,458			3,088,901			129,919
Receivable for investments sold		—			7,610,193			113,583
Prepaid expenses and other assets		15,446			13,948			631
Total Assets		1,569,594,200			2,683,808,864			127,982,042
Liabilities
Securities sold short, at fair value (proceeds $—, $—, $—, $—, $—, $707,650,526, $10,491,430, $3,306,248, $— and $—)		—			—			—
Bank overdraft		—			—			—
Payable for securities purchased		—			5,849,207			289,065
Payable for expenses and fees on securities sold short		—			—			—
Payable for fund shares redeemed		1,272,293			1,341,708			23,358
Payable for return of collateral received		113,652,595			188,757,519			4,726,716
Payable to Investment Adviser		951,808			1,548,957			61,436
Payable to Administrator		193,963			248,556			15,084
Accrued distribution and service fees		99,011			71,023			5,159
Payable to accountant and custodian		1,237			2,794			100
Total Liabilities		116,170,907			197,819,764			5,120,918
Net Assets	$	1,453,423,293		$	2,485,989,100		$	122,861,124
Components of Net Assets
Paid-in capital	$	964,791,557		$	1,988,549,697		$	106,610,953
Accumulated net investment income (loss)		6,728,170			4,181,542			493,342
Accumulated net realized gains (losses) from investment transactions and foreign currency transactions		99,758,293			31,026,652			1,014,289
Net unrealized appreciation (depreciation) on investments and foreign currency translations		382,145,273			462,231,209			14,742,540
Net Assets	$	1,453,423,293		$	2,485,989,100		$	122,861,124
Net Assets
Class A Shares	$	311,097,898		$	205,999,985		$	24,797,074
Class C Shares	$	39,840,728		$	34,506,710		$	—
Class I Shares	$	901,430,063		$	1,139,901,867		$	66,477,906
Class Y Shares	$	201,054,604		$	1,105,580,538		$	31,586,144
Shares of beneficial interest outstanding (unlimited number of shares authorized, no par value)
Class A Shares		8,694,335			9,126,035			1,790,169
Class C Shares		1,285,201			1,673,403			—
Class I Shares		24,787,410			49,954,694			4,777,499
Class Y Shares		5,523,076			48,327,012			2,263,076
Net Asset Value, offering (except Class A Shares) and redemption price per share:
Class A Shares	$	35.78		$	22.57		$	13.85
Class C Shares(A)	$	31.00		$	20.62		$	—
Class I Shares	$	36.37		$	22.82		$	13.91
Class Y Shares	$	36.40		$	22.88		$	13.96
Maximum Offering Price
Maximum sales charge — Class A Shares		5.00	%		5.00	%		5.00	%
(100%/(100%-maximum sales charge) of net asset value adjusted to the nearest cent) per share — Class A Shares	$	37.66		$	23.76		$	14.58

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

See accompanying Notes to Financial Statements.

58 DIAMOND HILL FUNDS | SEMI- ANNUAL REPORT | JUNE 30, 2018 | DIAMOND-HILL.COM

Large Cap Fund			All Cap Select Fund			Long-Short Fund			Research Opportunities Fund			Financial Long-Short Fund			Global Fund			Short Duration Total Return Fund
$	4,778,922,935		$	191,858,562		$	3,867,660,472		$	74,239,159		$	35,880,461		$	15,805,215		$	441,661,685
	—			2,875,960			89,786,383			—			—			—			—
$	6,050,638,636		$	216,944,393		$	4,722,924,812		$	85,744,981		$	39,752,785		$	15,255,873		$	440,953,084
	—			2,878,198			89,801,926			—			—			—			—
	—			—			—			—			—			—			402,628
	—			—			1,070,527,296			7,211,211			4,065,808			—			—
	5,875,500			145,847			2,361,865			—			19,001			—			184,700
	4,310,057			245,165			5,258,848			82,068			26,826			23,219			1,242,038
	—			2,229,218			10,653,920			494,183			679,451			—			—
	466			1,349			25,992			3,355			4,722			—			—
	6,060,824,659			222,444,170			5,901,554,659			93,535,798			44,548,593			15,279,092			442,782,450
	—			—			852,313,587			13,302,926			4,214,345			—			—
	—			—			—			—			275,616			3			—
	—			3,670,757			44,334,894			425,659			—			190,234			7,367,351
	—			—			952,336			18,718			21,111			—			—
	4,719,963			134,268			7,539,964			77,943			156,114			—			3,379
	65,781,420			3,426,431			946,140,560			17,450,120			8,881,126			524,887			9,894,063
	2,488,425			124,226			3,054,314			49,200			25,840			8,428			119,706
	786,495			24,520			565,134			7,033			4,921			901			32,387
	332,546			10,429			142,750			3,053			3,128			7			2,511
	3,959			100			6,365			130			503			—			100
	74,112,808			7,390,731			1,855,049,904			31,334,782			13,582,704			724,460			17,419,497
$	5,986,711,851		$	215,053,439		$	4,046,504,755		$	62,201,016		$	30,965,889		$	14,554,632		$	425,362,953
$	4,613,963,647		$	179,676,641		$	3,209,583,162		$	53,979,542		$	27,545,657		$	14,940,288		$	425,589,440
	35,234,272			1,193,934			14,029,573			(95,559	)		119,610			93,605			48,725
	65,798,231			9,094,795			112,275,198			(377,293	)		336,395			70,081			433,389
	1,271,715,701			25,088,069			710,616,822			8,694,326			2,964,227			(549,342	)		(708,601	)
$	5,986,711,851		$	215,053,439		$	4,046,504,755		$	62,201,016		$	30,965,889		$	14,554,632		$	425,362,953
$	1,179,853,619		$	11,348,609		$	278,627,193		$	6,292,856		$	6,729,150		$	37,661		$	11,249,050
$	102,416,036		$	9,285,943		$	100,252,479		$	1,956,644		$	2,009,159		$	—		$	—
$	3,686,628,147		$	128,430,159		$	3,421,599,479		$	33,361,125		$	22,227,580		$	3,087,272		$	150,189,795
$	1,017,814,049		$	65,988,728		$	246,025,604		$	20,590,391		$	—		$	11,429,699		$	263,924,108
	45,973,979			704,090			11,015,309			266,343			277,227			2,736			1,117,023
	4,226,110			612,646			4,447,596			87,401			90,910			—			—
	142,558,811			7,906,351			131,873,121			1,394,031			911,630			223,923			14,907,787
	39,302,490			4,052,990			9,438,798			858,164			—			828,509			26,186,486
$	25.66		$	16.12		$	25.29		$	23.63		$	24.27		$	13.77		$	10.07
$	24.23		$	15.16		$	22.54		$	22.39		$	22.10		$	—		$	—
$	25.86		$	16.24		$	25.95		$	23.93		$	24.38		$	13.79		$	10.07
$	25.90		$	16.28		$	26.07		$	23.99		$	—		$	13.80		$	10.08
	5.00	%		5.00	%		5.00	%		5.00	%		5.00	%		5.00	%		2.25	%
$	27.01		$	16.97		$	26.62		$	24.87		$	25.55		$	14.49		$	10.30

See accompanying Notes to Financial Statements.

DIAMOND HILL FUNDS | SEMI- ANNUAL REPORT | JUNE 30, 2018 | DIAMOND-HILL.COM 59

Diamond Hill Funds
Statements of Assets & Liabilities (Continued)
June 30, 2018 (Unaudited)

	Core Bond Fund			Corporate Credit Fund			High Yield Fund
Assets
Investment in unaffiliated securities, at cost	$	57,368,288		$	807,718,400		$	56,939,161
Investment in affiliated securities, at cost		—			26,419,210			—
Investment securities, at fair value — including $4,082,871, $122,663,845 and $6,374,026 of securities loaned	$	55,990,844		$	799,583,012		$	56,667,646
Investment in affiliated securities, at fair value		—			26,469,842			—
Cash		—			—			100,195
Receivable for fund shares issued		—			2,668,511			11,800
Receivable for dividends and interest		244,130			11,558,208			893,504
Receivable for investments sold		—			15,125,424			2,799,276
Prepaid expenses and other assets		—			7,602			—
Total Assets		56,234,974			855,412,599			60,472,421
Liabilities
Payable for securities purchased		249,980			33,608,586			4,161,649
Payable for fund shares redeemed		13,666			290,938			178
Payable for return of collateral received		4,165,963			125,397,283			6,508,048
Payable to Investment Adviser		12,729			253,502			20,255
Payable to Administrator		3,760			96,216			4,084
Accrued distribution and service fees		908			33,641			317
Payable to accountant and custodian		100			228			100
Total Liabilities		4,447,106			159,680,394			10,694,631
Net Assets	$	51,787,868		$	695,732,205		$	49,777,790
Components of Net Assets
Paid-in capital	$	53,289,935		$	700,524,276		$	49,648,846
Accumulated (distributions in excess of) net investment income		(15,419	)		336,654			22,870
Accumulated net realized gains (losses) from investment transactions		(109,204	)		2,956,031			377,589
Net unrealized depreciation on investments		(1,377,444	)		(8,084,756	)		(271,515	)
Net Assets	$	51,787,868		$	695,732,205		$	49,777,790
Net Assets
Class A Shares	$	4,440,606		$	69,144,144		$	1,559,428
Class C Shares	$	—		$	24,632,407		$	—
Class I Shares	$	10,754,017		$	576,059,501		$	19,105,876
Class Y Shares	$	36,593,245		$	25,896,153		$	29,112,486
Shares of beneficial interest outstanding (unlimited number of shares authorized, no par value)
Class A Shares		460,713			6,194,070			146,355
Class C Shares		—			2,214,672			—
Class I Shares		1,115,534			51,773,440			1,791,737
Class Y Shares		3,793,824			2,328,642			2,730,800
Net Asset Value, offering (except Class A Shares) and redemption price per share:
Class A Shares	$	9.64		$	11.16		$	10.66
Class C Shares(A)	$	—		$	11.12		$	—
Class I Shares	$	9.64		$	11.13		$	10.66
Class Y Shares	$	9.65		$	11.12		$	10.66
Maximum Offering Price
Maximum sales charge — Class A Shares		3.50	%		3.50	%		3.50	%
(100%/(100%-maximum sales charge) of net asset value adjusted to the nearest cent) per share — Class A Shares	$	9.99		$	11.56		$	11.05

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

See accompanying Notes to Financial Statements.

60 DIAMOND HILL FUNDS | SEMI- ANNUAL REPORT | JUNE 30, 2018 | DIAMOND-HILL.COM

Diamond Hill Funds
Statements of Operations
For the six months ended June 30, 2018 (Unaudited)

	Small Cap Fund			Small-Mid Cap Fund			Mid Cap Fund			Large Cap Fund			All Cap Select Fund
Investment Income
Dividends	$	20,641,391		$	16,497,929		$	916,692		$	56,580,246		$	1,450,195
Income distributions from affiliated investments		969,802			862,130			39,465			—			51,704
Securities lending income		520,032			973,833			27,291			92,664			5,050
Foreign taxes withheld		(49,941	)		(72,184	)		(1,368	)		—			—
Total Investment Income		22,081,284			18,261,708			982,080			56,672,910			1,506,949
Expenses
Investment advisory fees		5,702,335			9,293,305			366,349			14,761,878			706,280
Administration fees		1,201,455			1,572,914			93,299			4,892,815			151,124
Distribution fees — Class A		414,929			269,325			32,132			1,575,033			16,140
Distribution and service fees — Class C		212,249			177,978			—			548,542			51,811
Other fees		3,176			5,273			737			12,012			909
Total Expenses		7,534,144			11,318,795			492,517			21,790,280			926,264
Advisory fees waived by Adviser		(93,485	)		(82,560	)		(3,779	)		—			(4,951	)
Net Expenses		7,440,659			11,236,235			488,738			21,790,280			921,313
Net Investment Income		14,640,625			7,025,473			493,342			34,882,630			585,636
Realized and Unrealized Gains on Investments
Net realized gains on investment transactions		77,179,477			41,196,253			1,563,709			61,099,747			9,253,477
Net realized losses on sales from affiliated investments		(4,768	)		—			—			—			—
Net change in unrealized appreciation (depreciation) on unaffiliated investments		(85,202,888	)		(6,875,253	)		(143,560	)		(269,245,490	)		(7,878,730	)
Net change in unrealized appreciation (depreciation) on affiliated investments		(155,925	)		(140,552	)		(6,434	)		—			(8,429	)
Net Realized and Unrealized Gains (Losses) on Investments		(8,184,104	)		34,180,448			1,413,715			(208,145,743	)		1,366,318
Change in Net Assets from Operations	$	6,456,521		$	41,205,921		$	1,907,057		$	(173,263,113	)	$	1,951,954

See accompanying Notes to Financial Statements.

DIAMOND HILL FUNDS | SEMI- ANNUAL REPORT | JUNE 30, 2018 | DIAMOND-HILL.COM 61

Diamond Hill Funds
Statements of Operations
For the six months ended June 30, 2018 (Unaudited)

	Long-Short Fund			Research Opportunities Fund			Financial Long-Short Fund			Global Fund(A)			Short Duration Total Return Fund
Investment Income
Dividends	$	37,734,575		$	423,499		$	362,929		$	153,283		$	137,735
Income distributions from affiliated investments		1,598,889			—			—			—			—
Interest		7,397,992			73,094			22,403			—			7,353,469
Securities lending income		1,063,787			18,837			10,119			484			8,457
Foreign taxes withheld		(63,194	)		(7,051	)		(3,475	)		(9,471	)		—
Total Investment Income		47,732,049			508,379			391,976			144,296			7,499,661
Expenses
Investment advisory fees		20,327,759			301,892			161,484			42,218			638,253
Administration fees		3,862,295			45,799			31,472			4,381			172,869
Distribution fees — Class A		399,823			9,516			9,129			30			21,838
Distribution and service fees — Class C		535,750			12,435			9,762			—			—
Other fees		49			853			563			2,513			1,320
Expenses and fees on securities sold short		8,729,707			119,485			62,327			—			—
Total Expenses		33,855,383			489,980			274,737			49,142			834,280
Advisory fees waived by Adviser		(152,907	)		—			—			—			—
Net Expenses		33,702,476			489,980			274,737			49,142			834,280
Net Investment Income		14,029,573			18,399			117,239			95,154			6,665,381
Realized and Unrealized Gains (Losses) on Investments
Net realized gains (losses) on investment transactions		264,744,291			(439,900	)		439,699			536,283			129,606
Net realized losses on closed short positions		(132,008,338	)		(27,323	)		(158,820	)		—			—
Net realized losses on foreign currency transactions		—			(560	)		(1,196	)		(1,549	)		—
Net change in unrealized appreciation (depreciation) on unaffiliated investments and foreign currency translations		(228,701,949	)		607,190			(944,938	)		(549,342	)		(1,335,310	)
Net change in unrealized appreciation (depreciation) on affiliated investments		(261,062	)		—			—			—			—
Net Realized and Unrealized Gains (Losses) on Investments		(96,227,058	)		139,407			(665,255	)		(14,608	)		(1,205,704	)
Change in Net Assets from Operations	$	(82,197,485	)	$	157,806		$	(548,016	)	$	80,546		$	5,459,677

^(A)  Inception date of the Fund is December 31, 2017. Fund commenced operations on January 2, 2018.

See accompanying Notes to Financial Statements.

62 DIAMOND HILL FUNDS | SEMI- ANNUAL REPORT | JUNE 30, 2018 | DIAMOND-HILL.COM

Diamond Hill Funds
Statements of Operations
For the six months ended June 30, 2018 (Unaudited)

	Core Bond Fund			Corporate Credit Fund			High Yield Fund
Investment Income
Dividends	$	7,557		$	462,293		$	20,032
Income distributions from affiliated investments		—			475,505			—
Interest		782,922			20,309,596			1,448,370
Securities Lending Income		4,980			174,371			10,898
Total Investment Income		795,459			21,421,765			1,479,300
Expenses
Investment advisory fees		72,048			1,499,614			104,446
Administration fees		22,848			582,360			21,788
Distribution fees — Class A		4,843			81,604			1,188
Distribution and service fees — Class C		—			126,523			—
Other fees		683			1,801			677
Total Expenses		100,422			2,291,902			128,099
Advisory fees waived by Adviser		—			(45,535	)		—
Net Expenses		100,422			2,246,367			128,099
Net Investment Income		695,037			19,175,398			1,351,201
Realized and Unrealized Gains (Losses) on Investments
Net realized gains (losses) on investment transactions		(85,155	)		3,242,961			357,429
Net change in unrealized appreciation (depreciation) on unaffiliated investments and foreign currency translations		(875,027	)		(12,791,928	)		(877,583	)
Net change in unrealized appreciation (depreciation) on affiliated investments		—			(77,523	)		—
Net Realized and Unrealized Losses on Investments		(960,182	)		(9,626,490	)		(520,154	)
Change in Net Assets from Operations	$	(265,145	)	$	9,548,908		$	831,047

See accompanying Notes to Financial Statements.

DIAMOND HILL FUNDS | SEMI- ANNUAL REPORT | JUNE 30, 2018 | DIAMOND-HILL.COM 63

Diamond Hill Funds
Statements of Changes in Net Assets

	Small Cap Fund						Small-Mid Cap Fund
	For the six months ended June 30, 2018 (Unaudited)			For the year ended December 31, 2017			For the six months ended June 30, 2018 (Unaudited)			For the year ended December 31, 2017
From Operations
Net investment income	$	14,640,625		$	5,178,552		$	7,025,473		$	9,873,840
Net realized gains on investment transactions		77,179,477			147,218,437			41,196,253			66,260,357
Net realized gains (losses) on sales from affiliated investments		(4,768	)		65,225			—			—
Net change in unrealized appreciation (depreciation) on investments		(85,358,813	)		6,182,314			(7,015,805	)		125,614,368
Change in Net Assets from Operations		6,456,521			158,644,528			41,205,921			201,748,565
Distributions to Shareholders
From net investment income:
Class A		—			(1,321,528	)		—			(303,334	)
Class I		—			(5,991,674	)		—			(5,389,337	)
Class Y		—			(1,640,786	)		—			(6,497,241	)
From net realized gains on investments
Class A		—			(21,620,193	)		—			(6,718,003	)
Class C		—			(3,195,681	)		—			(1,205,479	)
Class I		—			(51,638,884	)		—			(32,256,093	)
Class Y		—			(12,317,380	)		—			(32,514,902	)
Change in Net Assets from Distributions to Shareholders		—			(97,726,126	)		—			(84,884,389	)
Change in net assets from capital transactions		(43,096,189	)		(360,698,751	)		(68,020,186	)		87,305,574
Total Change in Net Assets		(36,639,668	)		(299,780,349	)		(26,814,265	)		204,169,750
Net Assets:
Beginning of period		1,490,062,961			1,789,843,310			2,512,803,365			2,308,633,615
End of period	$	1,453,423,293		$	1,490,062,961		$	2,485,989,100		$	2,512,803,365
Accumulated Net Investment Income (Loss)	$	6,728,170		$	(7,912,455	)	$	4,181,542		$	(2,843,931	)

See accompanying Notes to Financial Statements.

64 DIAMOND HILL FUNDS | SEMI- ANNUAL REPORT | JUNE 30, 2018 | 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, 2018 (Unaudited)			For the year ended December 31, 2017			For the six months ended June 30, 2018 (Unaudited)			For the year ended December 31, 2017
Capital Transactions
Class A
Proceeds from shares sold	$	17,494,314		$	43,255,689		$	17,958,759		$	36,452,472
Reinvested distributions		—			19,872,410			—			6,829,088
Payments for shares redeemed		(65,401,030	)		(160,780,052	)		(44,540,725	)		(116,201,345	)
Change in Net Assets from Class A Share Transactions		(47,906,716	)		(97,651,953	)		(26,581,966	)		(72,919,785	)
Class C
Proceeds from shares sold		383,789			1,046,500			1,779,544			3,119,654
Reinvested distributions		—			3,046,615			—			1,083,083
Payments for shares redeemed		(7,447,425	)		(13,140,561	)		(5,139,776	)		(11,302,980	)
Change in Net Assets from Class C Share Transactions		(7,063,636	)		(9,047,446	)		(3,360,232	)		(7,100,243	)
Class I
Proceeds from shares sold		160,105,317			207,519,695			134,664,297			251,743,493
Reinvested distributions		—			53,175,469			—			32,592,789
Payments for shares redeemed		(140,280,035	)		(492,010,322	)		(127,681,366	)		(236,950,259	)
Change in Net Assets from Class I Share Transactions		19,825,282			(231,315,158	)		6,982,931			47,386,023
Class Y
Proceeds from shares sold		12,828,597			65,381,792			63,586,164			269,513,443
Reinvested distributions		—			13,923,088			—			38,051,626
Payments for shares redeemed		(20,779,716	)		(101,989,074	)		(108,647,083	)		(187,625,490	)
Change in Net Assets from Class Y Share Transactions		(7,951,119	)		(22,684,194	)		(45,060,919	)		119,939,579
Change in net assets from capital transactions:	$	(43,096,189	)	$	(360,698,751	)	$	(68,020,186	)	$	87,305,574
Share Transactions:
Class A
Issued		488,845			1,231,341			800,396			1,664,263
Reinvested		—			566,117			—			311,412
Redeemed		(1,830,085	)		(4,546,243	)		(1,990,108	)		(5,285,514	)
Change in shares outstanding		(1,341,240	)		(2,748,785	)		(1,189,712	)		(3,309,839	)
Class C
Issued		12,372			33,943			86,456			155,374
Reinvested		—			100,251			—			53,965
Redeemed		(240,091	)		(425,207	)		(250,703	)		(559,494	)
Change in shares outstanding		(227,719	)		(291,013	)		(164,247	)		(350,155	)
Class I
Issued		4,368,183			5,796,796			5,933,179			11,400,492
Reinvested		—			1,487,039			—			1,465,206
Redeemed		(3,863,510	)		(13,791,406	)		(5,618,422	)		(10,707,040	)
Change in shares outstanding		504,673			(6,507,571	)		314,757			2,158,658
Class Y
Issued		352,513			1,822,073			2,801,191			12,148,534
Reinvested		—			388,760			—			1,705,402
Redeemed		(573,784	)		(2,824,566	)		(4,781,985	)		(8,434,929	)
Change in shares outstanding		(221,271	)		(613,733	)		(1,980,794	)		5,419,007
Change in total shares outstanding		(1,285,557	)		(10,161,102	)		(3,019,996	)		3,917,671

See accompanying Notes to Financial Statements.

DIAMOND HILL FUNDS | SEMI- ANNUAL REPORT | JUNE 30, 2018 | DIAMOND-HILL.COM 65

Diamond Hill Funds
Statements of Changes in Net Assets

		Mid Cap Fund						Large Cap Fund
		For the six months ended June 30, 2018 (Unaudited)			For the year ended December 31, 2017			For the six months ended June 30, 2018 (Unaudited)			For the year ended December 31, 2017
From Operations
Net investment income		$	493,342		$	532,032		$	34,882,630		$	57,379,263
Net realized gains on investment transactions			1,563,709			977,014			61,099,747			216,008,773
Net change in unrealized appreciation (depreciation) on investments			(149,994	)		8,133,171			(269,245,490	)		635,590,500
Change in Net Assets from Operations			1,907,057			9,642,217			(173,263,113	)		908,978,536
Distributions to Shareholders
From net investment income:
Class A			—			(57,610	)		—			(10,246,592	)
Class C			—			—			—			(182,822	)
Class I			—			(304,384	)		—			(37,412,120	)
Class Y			—			(179,996	)		—			(9,474,688	)
From net realized gains on investments			—						—
Class A			—			(323,672	)		—			(48,625,612	)
Class C			—			—			—			(4,361,901	)
Class I			—			(776,190	)		—			(126,753,506	)
Class Y			—			(409,536	)		—			(29,965,617	)
Change in Net Assets from Distributions to Shareholders			—			(2,051,388	)		—			(267,022,858	)
Change in net assets from capital transactions			(1,139,491	)		55,685,995			313,532,849			1,126,764,825
Total Change in Net Assets			767,566			63,276,824			140,269,736			1,768,720,503
	��
Net Assets:
Beginning of year			122,093,558			58,816,734			5,846,442,115			4,077,721,612
End of year		$	122,861,124		$	122,093,558		$	5,986,711,851		$	5,846,442,115
Accumulated Net Investment Income		$	493,342		$	—		$	35,234,272		$	351,642

See accompanying Notes to Financial Statements.

66 DIAMOND HILL FUNDS | SEMI- ANNUAL REPORT | JUNE 30, 2018 | 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, 2018 (Unaudited)			For the year ended December 31, 2017			For the six months ended June 30, 2018 (Unaudited)			For the year ended December 31, 2017
Capital Transactions
Class A
Proceeds from shares sold	$	3,062,708		$	22,041,226		$	84,185,362		$	219,577,307
Reinvested distributions		—			368,762			—			58,105,716
Payments for shares redeemed		(4,489,542	)		(5,300,997	)		(213,981,321	)		(259,447,690	)
Change in Net Assets from Class A Share Transactions		(1,426,834	)		17,108,991			(129,795,959	)		18,235,333
Class C
Proceeds from shares sold		—			—			11,724,019			23,933,486
Reinvested distributions		—			—			—			4,291,336
Payments for shares redeemed		—			—			(20,733,599	)		(22,789,348	)
Change in Net Assets from Class C Share Transactions		—			—			(9,009,580	)		5,435,474
Class I
Proceeds from shares sold		12,041,736			38,211,310			742,695,641			1,503,237,486
Reinvested distributions		—			996,637			—			130,980,753
Payments for shares redeemed		(9,881,510	)		(7,795,801	)		(486,532,334	)		(608,117,842	)
Change in Net Assets from Class I Share Transactions		2,160,226			31,412,146			256,163,307			1,026,100,397
Class Y
Proceeds from shares sold		1,152,248			7,439,870			275,343,529			216,754,188
Reinvested distributions		—			242,018			—			38,139,331
Payments for shares redeemed		(3,025,131	)		(517,030	)		(79,168,448	)		(177,899,898	)
Change in Net Assets from Class Y Share Transactions		(1,872,883	)		7,164,858			196,175,081			76,993,621
Change in net assets from capital transactions:	$	(1,139,491	)	$	55,685,995		$	313,532,849		$	1,126,764,825
Share Transactions:
Class A
Issued		220,671			1,684,618			3,218,365			8,823,702
Reinvested		—			27,333			—			2,203,772
Redeemed		(323,659	)		(406,802	)		(8,158,233	)		(10,349,496	)
Change in shares outstanding		(102,988	)		1,305,149			(4,939,868	)		677,978
Class C
Issued		—			—			466,380			1,002,019
Reinvested		—			—			—			172,860
Redeemed		—			—			(837,054	)		(949,750	)
Change in shares outstanding		—			—			(370,674	)		225,129
Class I
Issued		870,410			2,913,937			28,113,034			59,051,534
Reinvested		—			73,297			—			4,923,533
Redeemed		(713,851	)		(586,851	)		(18,504,439	)		(23,981,084	)
Change in shares outstanding		156,559			2,400,383			9,608,595			39,993,983
Class Y
Issued		83,559			571,830			10,560,509			8,566,956
Reinvested		—			17,739			—			1,431,646
Redeemed		(219,475	)		(39,081	)		(2,994,197	)		(6,991,868	)
Change in shares outstanding		(135,916	)		550,488			7,566,312			3,006,734
Change in total shares outstanding		(82,345	)		4,256,020			11,864,365			43,903,824

See accompanying Notes to Financial Statements.

DIAMOND HILL FUNDS | SEMI- ANNUAL REPORT | JUNE 30, 2018 | DIAMOND-HILL.COM 67

Diamond Hill Funds
Statements of Changes in Net Assets

	All Cap Select Fund						Long-Short Fund
	For the six months ended June 30, 2018 (Unaudited)			For the year ended December 31, 2017			For the six months ended June 30, 2018 (Unaudited)			For the year ended December 31, 2017
From Operations
Net investment income	$	585,636		$	608,856		$	14,029,573		$	1,606,600
Net realized gains (losses) on investment transactions		9,253,477			16,146,928			264,744,291			(247,239,323	)
Net realized gains (losses) on closed short positions		—			—			(132,008,338	)		308,978,428
Net change in unrealized appreciation (depreciation) on investments		(7,887,159	)		10,864,775			(228,963,011	)		200,916,292
Change in Net Assets from Operations		1,951,954			27,620,559			(82,197,485	)		264,261,997
Distributions to Shareholders
From net investment income:
Class A		—			—			—			—
Class I		—			(123,325	)		—			(1,069,047	)
Class Y		—			(33,195	)		—			(316,452	)
From net realized gains on investments
Class A		—			—			—			(7,598,222	)
Class C		—			—			—			(2,720,287	)
Class I		—			—			—			(83,447,184	)
Class Y		—			—			—			(5,492,843	)
Change in Net Assets from Distributions to Shareholders		—			(156,520	)		—			(100,644,035	)
Change in net assets from capital transactions		30,687,715			16,068,901			(638,022,536	)		180,260,316
Total Change in Net Assets		32,639,669			43,532,940			(720,220,021	)		343,878,278
Net Assets:
Beginning of period		182,413,770			138,880,830			4,766,724,776			4,422,846,498
End of period	$	215,053,439		$	182,413,770		$	4,046,504,755		$	4,766,724,776
Accumulated Net Investment Income	$	1,193,934		$	608,298		$	14,029,573		$	—

See accompanying Notes to Financial Statements.

68 DIAMOND HILL FUNDS | SEMI- ANNUAL REPORT | JUNE 30, 2018 | DIAMOND-HILL.COM

Diamond Hill Funds
Statements of Changes in Net Assets

	All Cap Select Fund						Long-Short Fund
	For the six months ended June 30, 2018 (Unaudited)			For the year ended December 31, 2017			For the six months ended June 30, 2018 (Unaudited)			For the year ended December 31, 2017
Capital Transactions
Class A
Proceeds from shares sold	$	596,705		$	1,503,266		$	20,958,507		$	56,139,940
Reinvested distributions		—			—			—			6,833,236
Payments for shares redeemed		(2,831,066	)		(5,473,374	)		(95,463,070	)		(179,295,930	)
Change in Net Assets from Class A Share Transactions		(2,234,361	)		(3,970,108	)		(74,504,563	)		(116,322,754	)
Class C
Proceeds from shares sold		298,870			678,560			1,171,268			4,471,994
Reinvested distributions		—			—			—			2,436,942
Payments for shares redeemed		(2,125,423	)		(3,815,356	)		(13,595,514	)		(40,715,362	)
Change in Net Assets from Class C Share Transactions		(1,826,553	)		(3,136,796	)		(12,424,246	)		(33,806,426	)
Class I
Proceeds from shares sold		20,066,826			42,578,943			423,169,306			1,161,341,128
Reinvested distributions		—			119,642			—			68,586,680
Payments for shares redeemed		(29,376,789	)		(19,015,397	)		(964,347,932	)		(924,213,793	)
Change in Net Assets from Class I Share Transactions		(9,309,963	)		23,683,188			(541,178,626	)		305,714,015
Class Y
Proceeds from shares sold		50,137,701			2,447,592			25,015,240			84,275,911
Reinvested distributions		—			28,884			—			2,989,663
Payments for shares redeemed		(6,079,109	)		(2,983,859	)		(34,930,341	)		(62,590,093	)
Change in Net Assets from Class Y Share Transactions		44,058,592			(507,383	)		(9,915,101	)		24,675,481
Change in net assets from capital transactions:	$	30,687,715		$	16,068,901		$	(638,022,536	)	$	180,260,316
Share Transactions:
Class A
Issued		36,724			105,675			816,004			2,193,777
Reinvested		—			—			—			267,341
Redeemed		(174,883	)		(384,577	)		(3,712,620	)		(7,017,787	)
Change in shares outstanding		(138,159	)		(278,902	)		(2,896,616	)		(4,556,669	)
Class C
Issued		19,549			50,614			50,932			194,601
Reinvested		—			—			—			106,556
Redeemed		(139,815	)		(284,375	)		(594,390	)		(1,766,507	)
Change in shares outstanding		(120,266	)		(233,761	)		(543,458	)		(1,465,350	)
Class I
Issued		1,236,985			2,826,911			15,986,034			44,372,451
Reinvested		—			7,399			—			2,619,467
Redeemed		(1,789,086	)		(1,329,505	)		(36,937,288	)		(35,305,935	)
Change in shares outstanding		(552,101	)		1,504,805			(20,951,254	)		11,685,983
Class Y
Issued		3,084,196			169,956			926,769			3,200,554
Reinvested		—			1,783			—			113,593
Redeemed		(371,653	)		(206,442	)		(1,329,482	)		(2,389,929	)
Change in shares outstanding		2,712,543			(34,703	)		(402,713	)		924,218
Change in total shares outstanding		1,902,017			957,439			(24,794,041	)		6,568,182

See accompanying Notes to Financial Statements.

DIAMOND HILL FUNDS | SEMI- ANNUAL REPORT | JUNE 30, 2018 | DIAMOND-HILL.COM 69

Diamond Hill Funds
Statements of Changes in Net Assets

	Research Opportunities Fund						Financial Long-Short Fund
	For the six months ended June 30, 2018 (Unaudited)			For the year ended December 31, 2017			For the six months ended June 30, 2018 (Unaudited)			For the year ended December 31, 2017
From Operations
Net investment income (loss)	$	18,399		$	(182,572	)	$	117,239		$	3,576
Net realized gains (losses) on investment transactions		(439,900	)		5,954,064			439,699			3,007,004
Net realized losses on closed short positions		(27,323	)		(2,872,262	)		(158,820	)		(82,821	)
Net realized losses on foreign currency transactions		(560	)		(2,626	)		(1,196	)		—
Net change in unrealized appreciation (depreciation) on investments and foreign currency translations		607,190			4,490,196			(944,938	)		681,514
Change in Net Assets from Operations		157,806			7,386,800			(548,016	)		3,609,273
Distributions to Shareholders
From net investment income:
Class A		—			—			—			—
Class I		—			—			—			—
Class Y		—			—			—			(34,066	)
From net realized gains on investments
Class A		—			(403,031	)		—			—
Class C		—			(79,709	)		—			—
Class I		—			(938,790	)		—			—
Class Y		—			(414,461	)		—			—
Change in Net Assets from Distributions to Shareholders		—			(1,835,991	)		—			(34,066	)
Change in net assets from capital transactions		(6,841,871	)		11,842,542			(3,480,245	)		(973,610	)
Total Change in Net Assets		(6,684,065	)		17,393,351			(4,028,261	)		2,601,597
Net Assets:
Beginning of period		68,885,081			51,491,730			34,994,150			32,392,553
End of period	$	62,201,016		$	68,885,081		$	30,965,889		$	34,994,150
Accumulated Net Investment Income (Loss)	$	(95,559	)	$	(113,398	)	$	119,610		$	3,567

See accompanying Notes to Financial Statements.

70 DIAMOND HILL FUNDS | SEMI- ANNUAL REPORT | JUNE 30, 2018 | 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, 2018 (Unaudited)			For the year ended December 31, 2017			For the six months ended June 30, 2018 (Unaudited)			For the year ended December 31, 2017
Capital Transactions
Class A
Proceeds from shares sold	$	742,695		$	11,940,060		$	321,754		$	1,669,624
Reinvested distributions		—			394,023			—			—
Payments for shares redeemed		(4,915,098	)		(6,683,375	)		(2,713,682	)		(3,548,598	)
Change in Net Assets from Class A Share Transactions		(4,172,403	)		5,650,708			(2,391,928	)		(1,878,974	)
Class C
Proceeds from shares sold		83,198			1,211,811			151,071			170,318
Reinvested distributions		—			74,816			—			—
Payments for shares redeemed		(924,460	)		(1,706,468	)		(19,196	)		(159,088	)
Change in Net Assets from Class C Share Transactions		(841,262	)		(419,841	)		131,875			11,230
Class I
Proceeds from shares sold		4,947,636			12,580,946			3,934,642			3,366,779
Reinvested distributions		—			923,625			—			33,376
Payments for shares redeemed		(6,749,889	)		(9,043,871	)		(5,154,834	)		(2,506,021	)
Change in Net Assets from Class I Share Transactions		(1,802,253	)		4,460,700			(1,220,192	)		894,134
Class Y
Proceeds from shares sold		442,791			5,653,805			—			—
Reinvested distributions		—			129,874			—			—
Payments for shares redeemed		(468,744	)		(3,632,704	)		—			—
Change in Net Assets from Class Y Share Transactions		(25,953	)		2,150,975			—			—
Change in net assets from capital transactions:	$	(6,841,871	)	$	11,842,542		$	(3,480,245	)	$	(973,610	)
Share Transactions:
Class A
Issued		31,758			524,342			12,976			72,547
Reinvested		—			17,013			—			—
Redeemed		(212,549	)		(288,383	)		(110,432	)		(157,516	)
Change in shares outstanding		(180,791	)		252,972			(97,456	)		(84,969	)
Class C
Issued		3,742			56,134			6,782			8,111
Reinvested		—			3,396			—			—
Redeemed		(41,751	)		(79,274	)		(839	)		(7,334	)
Change in shares outstanding		(38,009	)		(19,744	)		5,943			777
Class I
Issued		208,531			549,585			158,898			143,684
Reinvested		—			39,437			—			1,342
Redeemed		(284,306	)		(395,655	)		(210,586	)		(108,534	)
Change in shares outstanding		(75,775	)		193,367			(51,688	)		36,492
Class Y
Issued		18,694			236,990			—			—
Reinvested		—			5,534			—			—
Redeemed		(20,060	)		(157,561	)		—			—
Change in shares outstanding		(1,366	)		84,963			—			—
Change in total shares outstanding		(295,941	)		511,558			(143,201	)		(47,700	)

See accompanying Notes to Financial Statements.

DIAMOND HILL FUNDS | SEMI- ANNUAL REPORT | JUNE 30, 2018 | DIAMOND-HILL.COM 71

Diamond Hill Funds
Statements of Changes in Net Assets

	Global Fund			Short Duration Total Return Fund
	For the period ended June 30, 2018 (Unaudited)(A)			For the six months ended June 30, 2018 (Unaudited)			For the year ended December 31, 2017
From Operations
Net investment income	$	95,154		$	6,665,381		$	8,849,902
Net realized gains on investment transactions		536,283			129,606			1,174,769
Net realized losses on foreign currency transactions		(1,549	)		—			—
Net change in unrealized appreciation (depreciation) on investments and foreign currency translations		(549,342	)		(1,335,310	)		1,207,100
Change in Net Assets from Operations		80,546			5,459,677			11,231,771
Distributions to Shareholders
From net investment income:
Class A		—			(277,899	)		(256,909	)
Class I		—			(1,683,937	)		(1,239,565	)
Class Y		—			(4,732,419	)		(7,682,908	)
From net realized gains on investments
Class A		(464	)		—			(25,838	)
Class I		(5,489	)		—			(75,188	)
Class Y		(460,249	)		—			(289,271	)
Change in Net Assets from Distributions to Shareholders		(466,202	)		(6,694,255	)		(9,569,679	)
Change in net assets from capital transactions		14,940,288			113,660,226			113,818,751
Total Change in Net Assets		14,554,632			112,425,648			115,480,843
Net Assets:
Beginning of period		—			312,937,305			197,456,462
End of period	$	14,554,632		$	425,362,953		$	312,937,305
Accumulated Net Investment Income	$	93,605		$	48,725		$	77,599

^(A)  Inception date of the Fund is December 31, 2017. Fund commenced operations on January 2, 2018.

See accompanying Notes to Financial Statements.

72 DIAMOND HILL FUNDS | SEMI- ANNUAL REPORT | JUNE 30, 2018 | DIAMOND-HILL.COM

Diamond Hill Funds
Statements of Changes in Net Assets

	Global Fund			Short Duration Total Return Fund
	For the period ended June 30, 2018 (Unaudited)(A)			For the six months ended June 30, 2018 (Unaudited)			For the year ended December 31, 2017
Capital Transactions
Class A
Proceeds from shares sold	$	38,649		$	3,769,241		$	20,314,417
Reinvested distributions		464			275,685			279,855
Payments for shares redeemed		—			(13,246,724	)		(229,746	)
Change in Net Assets from Class A Share Transactions		39,113			(9,201,798	)		20,364,526
Class I
Proceeds from shares sold		4,899,919			97,887,711			57,643,231
Reinvested distributions		5,489			1,188,198			1,130,737
Payments for shares redeemed		(2,090,277	)		(9,708,584	)		(12,402,283	)
Change in Net Assets from Class I Share Transactions		2,815,131			89,367,325			46,371,685
Class Y
Proceeds from shares sold		11,625,795			49,933,907			85,196,939
Reinvested distributions		460,249			4,549,664			7,972,179
Payments for shares redeemed		—			(20,988,872	)		(46,086,578	)
Change in Net Assets from Class Y Share Transactions		12,086,044			33,494,699			47,082,540
Change in net assets from capital transactions:	$	14,940,288		$	113,660,226		$	113,818,751
Share Transactions:
Class A
Issued		2,703			373,781			2,002,547
Reinvested		33			27,358			27,636
Redeemed		—			(1,313,754	)		(22,690	)
Change in shares outstanding		2,736			(912,615	)		2,007,493
Class I
Issued		366,042			9,704,118			5,695,476
Reinvested		381			117,887			111,778
Redeemed		(142,500	)		(962,053	)		(1,225,484	)
Change in shares outstanding		223,923			8,859,952			4,581,770
Class Y
Issued		796,525			4,942,033			8,442,227
Reinvested		31,984			451,208			788,597
Redeemed		—			(2,079,402	)		(4,549,405	)
Change in shares outstanding		828,509			3,313,839			4,681,419
Change in total shares outstanding		1,055,168			11,261,176			11,270,682

^(A)  Inception date of the Fund is December 31, 2017. Fund commenced operations on January 2, 2018.

See accompanying Notes to Financial Statements.

DIAMOND HILL FUNDS | SEMI- ANNUAL REPORT | JUNE 30, 2018 | DIAMOND-HILL.COM 73

Diamond Hill Funds
Statements of Changes in Net Assets

	Core Bond Fund						Corporate Credit Fund
	For the six months ended June 30, 2018 (Unaudited)			For the year ended December 31, 2017			For the six months ended June 30, 2018 (Unaudited)			For the year ended December 31, 2017
From Operations
Net investment income	$	695,037		$	1,031,854		$	19,175,398		$	32,388,847
Net realized gains (losses) on investment transactions		(85,155	)		59,298			3,242,961			3,594,371
Net change in unrealized appreciation (depreciation) on investments		(875,027	)		609,589			(12,869,451	)		8,677,351
Change in Net Assets from Operations		(265,145	)		1,700,741			9,548,908			44,660,569
Distributions to Shareholders
From net investment income:
Class A		(52,141	)		(65,632	)		(1,767,608	)		(3,965,873	)
Class C		—			—			(585,016	)		(1,225,096	)
Class I		(143,193	)		(232,212	)		(15,721,733	)		(26,272,760	)
Class Y		(518,873	)		(786,931	)		(727,847	)		(1,310,086	)
From net realized gains on investments
Class A		—			—			—			(295,389	)
Class C		—			—			—			(123,938	)
Class I		—			—			—			(2,442,011	)
Class Y		—			—			—			(116,600	)
Change in Net Assets from Distributions to Shareholders		(714,207	)		(1,084,775	)		(18,802,204	)		(35,751,753	)
Change in net assets from capital transactions		8,943,751			3,523,989			52,613,884			110,005,158
Total Change in Net Assets		7,964,399			4,139,955			43,360,588			118,913,974
Net Assets:
Beginning of period		43,823,469			39,683,514			652,371,617			533,457,643
End of period	$	51,787,868		$	43,823,469		$	695,732,205		$	652,371,617
Accumulated (Distributions in Excess of ) Net Investment Income	$	(15,419	)	$	3,751		$	336,654		$	(36,540	)

See accompanying Notes to Financial Statements.

74 DIAMOND HILL FUNDS | SEMI- ANNUAL REPORT | JUNE 30, 2018 | DIAMOND-HILL.COM

Diamond Hill Funds
Statements of Changes in Net Assets

	Core Bond Fund						Corporate Credit Fund
	For the six months ended June 30, 2018 (Unaudited)			For the year ended December 31, 2017			For the six months ended June 30, 2018 (Unaudited)			For the year ended December 31, 2017
Capital Transactions
Class A
Proceeds from shares sold	$	1,279,079		$	1,517,609		$	19,405,982		$	32,379,322
Reinvested distributions		51,697			65,510			1,626,862			3,803,643
Payments for shares redeemed		(296,855	)		(320,470	)		(15,176,327	)		(44,425,321	)
Change in Net Assets from Class A Share Transactions		1,033,921			1,262,649			5,856,517			(8,242,356	)
Class C
Proceeds from shares sold		—			—			1,235,057			3,493,037
Reinvested distributions		—			—			472,548			1,041,427
Payments for shares redeemed		—			—			(3,386,933	)		(7,987,804	)
Change in Net Assets from Class C Share Transactions		—			—			(1,679,328	)		(3,453,340	)
Class I
Proceeds from shares sold		1,755,725			1,676,150			104,188,016			183,507,810
Reinvested distributions		142,760			230,965			13,049,842			25,054,913
Payments for shares redeemed		(546,512	)		(458,620	)		(69,732,048	)		(90,498,834	)
Change in Net Assets from Class I Share Transactions		1,351,973			1,448,495			47,505,810			118,063,889
Class Y
Proceeds from shares sold		6,062,031			99,000			2,013,987			4,844,305
Reinvested distributions		518,872			786,931			690,050			1,089,270
Payments for shares redeemed		(23,046	)		(73,086	)		(1,773,152	)		(2,296,610	)
Change in Net Assets from Class Y Share Transactions		6,557,857			812,845			930,885			3,636,965
Change in net assets from capital transactions:	$	8,943,751		$	3,523,989		$	52,613,884		$	110,005,158
Share Transactions:
Class A
Issued		132,721			154,214			1,724,790			2,862,161
Reinvested		5,352			6,658			145,032			335,528
Redeemed		(30,731	)		(32,531	)		(1,349,894	)		(3,910,089	)
Change in shares outstanding		107,342			128,341			519,928			(712,400	)
Class C
Issued		—			—			110,143			309,224
Reinvested		—			—			42,274			92,184
Redeemed		—			—			(301,774	)		(706,615	)
Change in shares outstanding		—			—			(149,357	)		(305,207	)
Class I
Issued		181,964			170,393			9,278,340			16,221,834
Reinvested		14,775			23,482			1,167,333			2,217,197
Redeemed		(56,554	)		(46,582	)		(6,213,263	)		(7,995,095	)
Change in shares outstanding		140,185			147,293			4,232,410			10,443,936
Class Y
Issued		622,401			10,082			179,437			429,260
Reinvested		53,676			80,012			61,745			96,447
Redeemed		(2,388	)		(7,511	)		(157,672	)		(202,630	)
Change in shares outstanding		673,689			82,583			83,510			323,077
Change in total shares outstanding		921,216			358,217			4,686,491			9,749,406

See accompanying Notes to Financial Statements.

DIAMOND HILL FUNDS | SEMI- ANNUAL REPORT | JUNE 30, 2018 | DIAMOND-HILL.COM 75

Diamond Hill Funds
Statements of Changes in Net Assets

	High Yield Fund
	For the six months ended June 30, 2018 (Unaudited)			For the year ended December 31, 2017
From Operations
Net investment income	$	1,351,201		$	1,850,933
Net realized gains on investment transactions		357,429			886,142
Net change in unrealized appreciation (depreciation) on investments		(877,583	)		223,959
Change in Net Assets from Operations		831,047			2,961,034
Distributions to Shareholders
From net investment income:
Class A		(31,232	)		(16,068	)
Class I		(495,979	)		(1,022,957	)
Class Y		(805,075	)		(825,889	)
From net realized gains on investments
Class A		—			(7,547	)
Class I		—			(338,862	)
Class Y		—			(367,223	)
Change in Net Assets from Distributions to Shareholders		(1,332,286	)		(2,578,546	)
Change in net assets from capital transactions		19,175,360			(1,204,552	)
Total Change in Net Assets		18,674,121			(822,064	)
Net Assets:
Beginning of period		31,103,669			31,925,733
End of period	$	49,777,790		$	31,103,669
Accumulated Net Investment Income	$	22,870		$	3,955

See accompanying Notes to Financial Statements.

76 DIAMOND HILL FUNDS | SEMI- ANNUAL REPORT | JUNE 30, 2018 | DIAMOND-HILL.COM

Diamond Hill Funds
Statements of Changes in Net Assets

	High Yield Fund
	For the six months ended June 30, 2018 (Unaudited)			For the year ended December 31, 2017
Capital Transactions
Class A
Proceeds from shares sold	$	1,289,177		$	230,678
Reinvested distributions		28,735			23,615
Payments for shares redeemed		(38,884	)		(143,666	)
Change in Net Assets from Class A Share Transactions		1,279,028			110,627
Class I
Proceeds from shares sold		5,569,433			7,800,470
Reinvested distributions		488,035			1,346,604
Payments for shares redeemed		(956,100	)		(19,346,390	)
Change in Net Assets from Class I Share Transactions		5,101,368			(10,199,316	)
Class Y
Proceeds from shares sold		12,285,356			7,977,563
Reinvested distributions		805,075			1,193,112
Payments for shares redeemed		(295,467	)		(286,538	)
Change in Net Assets from Class Y Share Transactions		12,794,964			8,884,137
Change in net assets from capital transactions:	$	19,175,360		$	(1,204,552	)
Share Transactions:
Class A
Issued		119,825			21,029
Reinvested		2,688			2,167
Redeemed		(3,614	)		(13,081	)
Change in shares outstanding		118,899			10,115
Class I
Issued		518,960			714,928
Reinvested		45,583			123,748
Redeemed		(88,856	)		(1,774,253	)
Change in shares outstanding		475,687			(935,577	)
Class Y
Issued		1,140,503			731,551
Reinvested		75,248			109,430
Redeemed		(27,599	)		(25,972	)
Change in shares outstanding		1,188,152			815,009
Change in total shares outstanding		1,782,738			(110,453	)

See accompanying Notes to Financial Statements.

DIAMOND HILL FUNDS | SEMI- ANNUAL REPORT | JUNE 30, 2018 | DIAMOND-HILL.COM 77

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)(A)			Net realized and unrealized gains (losses) on investments			Total from investment operations			Dividends from net investment income
Class A
For the six months ended June 30, 2018 (Unaudited)	$	35.62		0.33			(0.17	)		0.16			—
For the year ended December 31, 2017	$	34.39		0.06			3.55			3.61			(0.13	)
For the year ended December 31, 2016	$	30.89		0.00	(G)		4.36			4.36			—
For the year ended December 31, 2015	$	32.61		(0.05	)		(1.17	)		(1.22	)		(0.09	)
For the year ended December 31, 2014	$	32.72		(0.11	)		1.57			1.46			—
For the year ended December 31, 2013	$	24.95		0.00	(G)		9.86			9.86			(0.03	)
Class C
For the six months ended June 30, 2018 (Unaudited)	$	30.98		0.17			(0.15	)		0.02			—
For the year ended December 31, 2017	$	30.30		(0.19	)		3.12			2.93			—
For the year ended December 31, 2016	$	27.51		(0.23	)		3.88			3.65			—
For the year ended December 31, 2015	$	29.23		(0.25	)		(1.06	)		(1.31	)		—
For the year ended December 31, 2014	$	29.70		(0.33	)		1.43			1.10			—
For the year ended December 31, 2013	$	22.94		(0.21	)		9.03			8.82			—
Class I
For the six months ended June 30, 2018 (Unaudited)	$	36.15		0.39			(0.17	)		0.22			—
For the year ended December 31, 2017	$	34.87		0.17			3.61			3.78			(0.25	)
For the year ended December 31, 2016	$	31.28		0.10			4.42			4.52			(0.07	)
For the year ended December 31, 2015	$	33.04		0.05			(1.20	)		(1.15	)		(0.20	)
For the year ended December 31, 2014	$	33.10		(0.02	)		1.59			1.57			(0.06	)
For the year ended December 31, 2013	$	25.21		0.07			9.98			10.05			(0.10	)
Class Y
For the six months ended June 30, 2018 (Unaudited)	$	36.17		0.41			(0.18	)		0.23			—
For the year ended December 31, 2017	$	34.89		0.20			3.62			3.82			(0.29	)
For the year ended December 31, 2016	$	31.29		0.13			4.43			4.56			(0.10	)
For the year ended December 31, 2015	$	33.05		0.12			(1.23	)		(1.11	)		(0.24	)
For the year ended December 31, 2014	$	33.09		0.03			1.60			1.63			(0.10	)
For the year ended December 31, 2013	$	25.20		0.12			9.97			10.09			(0.14	)

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

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

^(C)  The Fund's adviser has contractually agreed to waive fees in the pro-rata amount of the management fee charged by the underlying Diamond Hill Fund on each Fund's investment in such other Diamond Hill Fund. If such fee waiver had not occurred, the ratios would have been as indicated.

^(D)  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.

78 DIAMOND HILL FUNDS | SEMI- ANNUAL REPORT | JUNE 30, 2018 | DIAMOND-HILL.COM

Distributions from net realized gains			Total distributions			Net asset value end of period		Total return(B)			Net assets at end of period (000’s)		Ratio of total net expenses to average net assets			Ratio of total gross expenses to average net assets(C)			Ratio of net investment income (loss) to average net assets			Portfolio turnover rate(D)
	—			—		$	35.78		0.45	%(E)	$	311,098		1.26	%(F)		1.27	%(F)		1.82	%(F)		12	%(E)
	(2.25	)		(2.38	)	$	35.62		10.62	%	$	357,512		1.27	%		1.28	%		0.11	%		7	%
	(0.86	)		(0.86	)	$	34.39		14.10	%	$	439,681		1.29	%		1.29	%		0.00	%(H)		15	%
	(0.41	)		(0.50	)	$	30.89		(3.73	)%	$	492,810		1.29	%		1.29	%		(0.15	)%		17	%
	(1.57	)		(1.57	)	$	32.61		4.60	%	$	571,941		1.30	%		1.30	%		(0.34	)%		16	%
	(2.06	)		(2.09	)	$	32.72		39.70	%	$	571,167		1.31	%		1.31	%		(0.01	)%		43	%
	—			—		$	31.00		0.06	%(E)	$	39,841		2.01	%(F)		2.02	%(F)		1.05	%(F)		12	%(E)
	(2.25	)		(2.25	)	$	30.98		9.80	%	$	46,868		2.02	%		2.03	%		(0.67	)%		7	%
	(0.86	)		(0.86	)	$	30.30		13.25	%	$	54,664		2.04	%		2.04	%		(0.75	)%		15	%
	(0.41	)		(0.41	)	$	27.51		(4.47	)%	$	57,875		2.04	%		2.04	%		(0.87	)%		17	%
	(1.57	)		(1.57	)	$	29.23		3.86	%	$	51,794		2.05	%		2.05	%		(1.07	)%		16	%
	(2.06	)		(2.06	)	$	29.70		38.64	%	$	46,476		2.06	%		2.06	%		(0.76	)%		43	%
	—			—		$	36.37		0.61	%(E)	$	901,430		0.96	%(F)		0.97	%(F)		2.15	%(F)		12	%(E)
	(2.25	)		(2.50	)	$	36.15		10.95	%	$	877,913		0.97	%		0.98	%		0.41	%		7	%
	(0.86	)		(0.93	)	$	34.87		14.45	%	$	1,073,671		0.99	%		0.99	%		0.32	%		15	%
	(0.41	)		(0.61	)	$	31.28		(3.47	)%	$	882,350		1.02	%		1.02	%		0.16	%		17	%
	(1.57	)		(1.63	)	$	33.04		4.86	%	$	659,199		1.05	%		1.05	%		(0.06	)%		16	%
	(2.06	)		(2.16	)	$	33.10		40.08	%	$	550,844		1.06	%		1.06	%		0.22	%		43	%
	—			—		$	36.40		0.64	%(E)	$	201,055		0.85	%(F)		0.86	%(F)		2.26	%(F)		12	%(E)
	(2.25	)		(2.54	)	$	36.17		11.06	%	$	207,770		0.87	%		0.88	%		0.53	%		7	%
	(0.86	)		(0.96	)	$	34.89		14.57	%	$	221,827		0.89	%		0.89	%		0.40	%		15	%
	(0.41	)		(0.65	)	$	31.29		(3.36	)%	$	221,624		0.90	%		0.90	%		0.37	%		17	%
	(1.57	)		(1.67	)	$	33.05		5.06	%	$	157,665		0.90	%		0.90	%		0.10	%		16	%
	(2.06	)		(2.20	)	$	33.09		40.25	%	$	101,026		0.91	%		0.91	%		0.40	%		43	%

^(E)  Not annualized.

^(F)  Annualized.

^(G)  Amount is less than $0.005.

^(H)  Amount is less than 0.005%.

See accompanying Notes to Financial Statements.

DIAMOND HILL FUNDS | SEMI- ANNUAL REPORT | JUNE 30, 2018 | DIAMOND-HILL.COM 79

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)(A)			Net realized and unrealized gains on investments		Total from investment operations		Dividends from net investment income
Class A
For the six months ended June 30, 2018 (Unaudited)	$	22.24		0.03			0.30		0.33		—
For the year ended December 31, 2017	$	21.18		0.03			1.73		1.76		(0.03	)
For the year ended December 31, 2016	$	18.29		0.01			3.25		3.26		(0.01	)
For the year ended December 31, 2015	$	18.33		0.01			0.17		0.18		(0.03	)
For the year ended December 31, 2014	$	17.73		0.03			1.23		1.26		(0.02	)
For the year ended December 31, 2013	$	13.13		0.04			5.35		5.39		(0.03	)
Class C
For the six months ended June 30, 2018 (Unaudited)	$	20.39		(0.05	)		0.28		0.23		—
For the year ended December 31, 2017	$	19.60		(0.13	)		1.59		1.46		—
For the year ended December 31, 2016	$	17.06		(0.12	)		3.02		2.90		—
For the year ended December 31, 2015	$	17.21		(0.12	)		0.16		0.04		—
For the year ended December 31, 2014	$	16.80		(0.10	)		1.15		1.05		—
For the year ended December 31, 2013	$	12.54		(0.07	)		5.09		5.02		—
Class I
For the six months ended June 30, 2018 (Unaudited)	$	22.45		0.06			0.31		0.37		—
For the year ended December 31, 2017	$	21.39		0.10			1.74		1.84		(0.11	)
For the year ended December 31, 2016	$	18.46		0.07			3.29		3.36		(0.07	)
For the year ended December 31, 2015	$	18.47		0.07			0.17		0.24		(0.06	)
For the year ended December 31, 2014	$	17.87		0.08			1.22		1.30		(0.06	)
For the year ended December 31, 2013	$	13.21		0.09			5.38		5.47		(0.05	)
Class Y
For the six months ended June 30, 2018 (Unaudited)	$	22.49		0.08			0.31		0.39		—
For the year ended December 31, 2017	$	21.42		0.12			1.75		1.87		(0.13	)
For the year ended December 31, 2016	$	18.48		0.09			3.29		3.38		(0.08	)
For the year ended December 31, 2015	$	18.49		0.09			0.17		0.26		(0.08	)
For the year ended December 31, 2014	$	17.87		0.11			1.23		1.34		(0.08	)
For the year ended December 31, 2013	$	13.20		0.12			5.38		5.50		(0.07	)

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

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

^(C)   The Fund's adviser has contractually agreed to waive fees in the pro-rata amount of the management fee charged by the underlying Diamond Hill Fund on each Fund's investment in such other Diamond Hill Fund. If such fee waiver had not occurred, the ratios would have been as indicated.

See accompanying Notes to Financial Statements.

80 DIAMOND HILL FUNDS | SEMI- ANNUAL REPORT | JUNE 30, 2018 | DIAMOND-HILL.COM

Distributions from net realized gains			Total distributions			Net asset value end of period		Total return(B)			Net assets at end of period (000’s)		Ratio of total net expenses to average net assets			Ratio of total gross expenses to average net assets(C)			Ratio of net investment income (loss) to average net assets			Portfolio turnover rate(D)
	—			—		$	22.57		1.48	%(E)	$	206,000		1.21	%(F)		1.22	%(F)		0.25	%(F)		12	%(E)
	(0.67	)		(0.70	)	$	22.24		8.35	%	$	229,411		1.22	%		1.23	%		0.09	%		15	%
	(0.36	)		(0.37	)	$	21.18		17.81	%	$	288,634		1.24	%		1.24	%		0.12	%		17	%
	(0.19	)		(0.22	)	$	18.29		0.98	%	$	156,122		1.24	%		1.24	%		0.06	%		21	%
	(0.64	)		(0.66	)	$	18.33		7.17	%	$	100,820		1.25	%		1.25	%		0.18	%		27	%
	(0.76	)		(0.79	)	$	17.73		41.25	%	$	61,563		1.26	%		1.26	%		0.27	%		35	%
	—			—		$	20.62		1.13	%(E)	$	34,507		1.96	%(F)		1.97	%(F)		(0.49	)%(F)		12	%(E)
	(0.67	)		(0.67	)	$	20.39		7.49	%	$	37,472		1.97	%		1.98	%		(0.66	)%		15	%
	(0.36	)		(0.36	)	$	19.60		16.98	%	$	42,875		1.99	%		1.99	%		(0.65	)%		17	%
	(0.19	)		(0.19	)	$	17.06		0.24	%	$	32,963		1.99	%		1.99	%		(0.69	)%		21	%
	(0.64	)		(0.64	)	$	17.21		6.33	%	$	25,276		2.00	%		2.00	%		(0.59	)%		27	%
	(0.76	)		(0.76	)	$	16.80		40.21	%	$	19,184		2.01	%		2.01	%		(0.45	)%		35	%
	—			—		$	22.82		1.65	%(E)	$	1,139,902		0.92	%(F)		0.93	%(F)		0.56	%(F)		12	%(E)
	(0.67	)		(0.78	)	$	22.45		8.63	%	$	1,114,337		0.92	%		0.93	%		0.41	%		15	%
	(0.36	)		(0.43	)	$	21.39		18.18	%	$	1,015,403		0.94	%		0.94	%		0.41	%		17	%
	(0.19	)		(0.25	)	$	18.46		1.32	%	$	506,730		0.97	%		0.97	%		0.35	%		21	%
	(0.64	)		(0.70	)	$	18.47		7.36	%	$	264,824		1.00	%		1.00	%		0.42	%		27	%
	(0.76	)		(0.81	)	$	17.87		41.64	%	$	148,927		1.01	%		1.01	%		0.54	%		35	%
	—			—		$	22.88		1.73	%(E)	$	1,105,581		0.80	%(F)		0.81	%(F)		0.67	%(F)		12	%(E)
	(0.67	)		(0.80	)	$	22.49		8.77	%	$	1,131,583		0.82	%		0.83	%		0.51	%		15	%
	(0.36	)		(0.44	)	$	21.42		18.29	%	$	961,721		0.84	%		0.84	%		0.49	%		17	%
	(0.19	)		(0.27	)	$	18.48		1.41	%	$	602,951		0.85	%		0.85	%		0.48	%		21	%
	(0.64	)		(0.72	)	$	18.49		7.60	%	$	300,815		0.85	%		0.85	%		0.62	%		27	%
	(0.76	)		(0.83	)	$	17.87		41.88	%	$	106,068		0.86	%		0.86	%		0.73	%		35	%

^(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, 2018 | DIAMOND-HILL.COM 81

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(B)		Net realized and unrealized gains on investments		Total from investment operations		Dividends from net investment income
Class A
For the six months ended June 30, 2018 (Unaudited)	$	13.66		0.04		0.15		0.19		—
For the year ended December 31, 2017	$	12.59		0.04		1.23		1.27		(0.03	)
For the year ended December 31, 2016	$	10.71		0.03		1.93		1.96		(0.02	)
For the year ended December 31, 2015	$	10.70		0.04		0.01		0.05		(0.04	)
For the year ended December 31, 2014	$	10.00		0.06		0.70		0.76		(0.06	)
Class I
For the six months ended June 30, 2018 (Unaudited)	$	13.70		0.06		0.15		0.21		—
For the year ended December 31, 2017	$	12.62		0.08		1.24		1.32		(0.07	)
For the year ended December 31, 2016	$	10.74		0.07		1.92		1.99		(0.05	)
For the year ended December 31, 2015	$	10.72		0.07		0.01		0.08		(0.06	)
For the year ended December 31, 2014	$	10.00		0.09		0.70		0.79		(0.07	)
Class Y
For the six months ended June 30, 2018 (Unaudited)	$	13.73		0.07		0.16		0.23		—
For the year ended December 31, 2017	$	12.65		0.09		1.24		1.33		(0.08	)
For the year ended December 31, 2016	$	10.75		0.08		1.94		2.02		(0.06	)
For the year ended December 31, 2015	$	10.73		0.08		0.01		0.09		(0.07	)
For the year ended December 31, 2014	$	10.00		0.09		0.71		0.80		(0.07	)

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

^(B)  Net investment income 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)  The Fund's adviser has contractually agreed to waive fees in the pro-rata amount of the management fee charged by the underlying Diamond Hill Fund on each Fund's investment in such other Diamond Hill Fund. If such fee waiver had not occurred, the ratios would have been as indicated.

See accompanying Notes to Financial Statements.

82 DIAMOND HILL FUNDS | SEMI- ANNUAL REPORT | JUNE 30, 2018 | DIAMOND-HILL.COM

Distributions from net realized gains			Total distributions			Net asset value end of period		Total return(C)			Net assets at end of period (000’s)		Ratio of total net expenses to average net assets			Ratio of total gross expenses to average net assets(D)			Ratio of net investment income to average net assets			Portfolio turnover rate(E)
	—			—		$	13.85		1.39	%(F)	$	24,797		1.06	%(G)		1.07	%(G)		0.55	%(G)		11	%(F)
	(0.17	)		(0.20	)	$	13.66		10.13	%	$	25,853		1.07	%		1.08	%		0.28	%		11	%
	(0.06	)		(0.08	)	$	12.59		18.29	%	$	7,403		1.14	%		1.14	%		0.31	%		17	%
	—			(0.04	)	$	10.71		0.44	%	$	3,082		1.14	%		1.14	%		0.35	%		29	%
	—			(0.06	)	$	10.70		7.57	%	$	2,120		1.15	%		1.15	%		0.59	%		28	%
	—			—		$	13.91		1.53	%(F)	$	66,478		0.77	%(G)		0.78	%(G)		0.84	%(G)		11	%(F)
	(0.17	)		(0.24	)	$	13.70		10.47	%	$	63,298		0.77	%		0.79	%		0.57	%		11	%
	(0.06	)		(0.11	)	$	12.62		18.56	%	$	28,031		0.85	%		0.85	%		0.67	%		17	%
	—			(0.06	)	$	10.74		0.74	%	$	3,337		0.87	%		0.87	%		0.61	%		29	%
	—			(0.07	)	$	10.72		7.91	%	$	2,743		0.90	%		0.90	%		0.87	%		28	%
	—			—		$	13.96		1.68	%(F)	$	31,586		0.66	%(G)		0.67	%(G)		0.94	%(G)		11	%(F)
	(0.17	)		(0.25	)	$	13.73		10.51	%	$	32,943		0.67	%		0.68	%		0.65	%		11	%
	(0.06	)		(0.12	)	$	12.65		18.76	%	$	23,383		0.75	%		0.75	%		0.71	%		17	%
	—			(0.07	)	$	10.75		0.84	%	$	12,077		0.75	%		0.75	%		0.72	%		29	%
	—			(0.07	)	$	10.73		8.02	%	$	11,419		0.75	%		0.75	%		0.87	%		28	%

^(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.

See accompanying Notes to Financial Statements.

DIAMOND HILL FUNDS | SEMI- ANNUAL REPORT | JUNE 30, 2018 | DIAMOND-HILL.COM 83

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(A)		Net realized and unrealized gains (losses) on investments			Total from investment operations			Dividends from net investment income
Class A
For the six months ended June 30, 2018 (Unaudited)	$	26.45		0.12		(0.91	)		(0.79	)		—
For the year ended December 31, 2017	$	23.06		0.24		4.35			4.59			(0.20	)
For the year ended December 31, 2016	$	21.44		0.25		2.82			3.07			(0.24	)
For the year ended December 31, 2015	$	22.71		0.19		(0.43	)		(0.24	)		(0.18	)
For the year ended December 31, 2014	$	21.49		0.21		2.01			2.22			(0.19	)
For the year ended December 31, 2013	$	16.54		0.18		5.79			5.97			(0.16	)
Class C
For the six months ended June 30, 2018 (Unaudited)	$	25.07		0.03		(0.87	)		(0.84	)		—
For the year ended December 31, 2017	$	21.94		0.05		4.12			4.17			(0.04	)
For the year ended December 31, 2016	$	20.49		0.08		2.68			2.76			(0.10	)
For the year ended December 31, 2015	$	21.77		0.02		(0.41	)		(0.39	)		(0.04	)
For the year ended December 31, 2014	$	20.68		0.04		1.93			1.97			(0.07	)
For the year ended December 31, 2013	$	15.98		0.03		5.58			5.61			(0.05	)
Class I
For the six months ended June 30, 2018 (Unaudited)	$	26.62		0.16		(0.92	)		(0.76	)		—
For the year ended December 31, 2017	$	23.20		0.32		4.38			4.70			(0.28	)
For the year ended December 31, 2016	$	21.55		0.31		2.86			3.17			(0.31	)
For the year ended December 31, 2015	$	22.83		0.25		(0.44	)		(0.19	)		(0.24	)
For the year ended December 31, 2014	$	21.58		0.27		2.03			2.30			(0.24	)
For the year ended December 31, 2013	$	16.61		0.24		5.80			6.04			(0.21	)
Class Y
For the six months ended June 30, 2018 (Unaudited)	$	26.64		0.18		(0.92	)		(0.74	)		—
For the year ended December 31, 2017	$	23.21		0.35		4.38			4.73			(0.30	)
For the year ended December 31, 2016	$	21.56		0.34		2.85			3.19			(0.33	)
For the year ended December 31, 2015	$	22.84		0.28		(0.44	)		(0.16	)		(0.27	)
For the year ended December 31, 2014	$	21.59		0.31		2.02			2.33			(0.27	)
For the year ended December 31, 2013	$	16.60		0.26		5.83			6.09			(0.24	)

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

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

^(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.

84 DIAMOND HILL FUNDS | SEMI- ANNUAL REPORT | JUNE 30, 2018 | DIAMOND-HILL.COM

Distributions from net realized gains			Total distributions			Net asset value end of period		Total return(B)			Net assets at end of period (000’s)		Ratio of total expenses to average net assets			Ratio of net investment income to average net assets			Portfolio turnover rate(C)
	—			—		$	25.66		(2.99	)%(D)	$	1,179,854		0.97	%(E)		0.96	%(E)		11	%(D)
	(1.00	)		(1.20	)	$	26.45		19.95	%	$	1,346,869		0.98	%		0.96	%		18	%
	(1.21	)		(1.45	)	$	23.06		14.26	%	$	1,158,652		0.99	%		1.12	%		23	%
	(0.85	)		(1.03	)	$	21.44		(1.10	)%	$	1,122,165		1.04	%		0.85	%		20	%
	(0.81	)		(1.00	)	$	22.71		10.42	%	$	1,182,155		1.05	%		0.94	%		24	%
	(0.86	)		(1.02	)	$	21.49		36.33	%	$	878,903		1.06	%		0.92	%		21	%
	—			—		$	24.23		(3.35	)%(D)	$	102,416		1.72	%(E)		0.21	%(E)		11	%(D)
	(1.00	)		(1.04	)	$	25.07		19.04	%	$	115,257		1.73	%		0.21	%		18	%
	(1.21	)		(1.31	)	$	21.94		13.40	%	$	95,923		1.74	%		0.37	%		23	%
	(0.85	)		(0.89	)	$	20.49		(1.83	)%	$	84,550		1.79	%		0.10	%		20	%
	(0.81	)		(0.88	)	$	21.77		9.60	%	$	83,781		1.80	%		0.19	%		24	%
	(0.86	)		(0.91	)	$	20.68		35.33	%	$	53,241		1.81	%		0.18	%		21	%
	—			—		$	25.86		(2.86	)%(D)	$	3,686,628		0.67	%(E)		1.25	%(E)		11	%(D)
	(1.00	)		(1.28	)	$	26.62		20.30	%	$	3,538,859		0.68	%		1.25	%		18	%
	(1.21	)		(1.52	)	$	23.20		14.63	%	$	2,156,390		0.70	%		1.41	%		23	%
	(0.85	)		(1.09	)	$	21.55		(0.85	)%	$	1,803,130		0.77	%		1.11	%		20	%
	(0.81	)		(1.05	)	$	22.83		10.74	%	$	1,606,797		0.80	%		1.20	%		24	%
	(0.86	)		(1.07	)	$	21.58		36.60	%	$	1,295,477		0.81	%		1.18	%		21	%
	—			—		$	25.90		(2.78	)%(D)	$	1,017,814		0.56	%(E)		1.35	%(E)		11	%(D)
	(1.00	)		(1.30	)	$	26.64		20.42	%	$	845,457		0.58	%		1.36	%		18	%
	(1.21	)		(1.54	)	$	23.21		14.74	%	$	666,756		0.60	%		1.49	%		23	%
	(0.85	)		(1.12	)	$	21.56		(0.74	)%	$	430,568		0.65	%		1.23	%		20	%
	(0.81	)		(1.08	)	$	22.84		10.89	%	$	373,711		0.65	%		1.36	%		24	%
	(0.86	)		(1.10	)	$	21.59		36.87	%	$	302,458		0.66	%		1.32	%		21	%

^(D)  Not annualized.

^(E)  Annualized.

See accompanying Notes to Financial Statements.

DIAMOND HILL FUNDS | SEMI- ANNUAL REPORT | JUNE 30, 2018 | DIAMOND-HILL.COM 85

All Cap Select Fund
Financial Highlights

Selected data for a share outstanding throughout the periods indicated

All Cap Select Fund	Net asset value beginning of period		Net investment income (loss)(A)			Net realized and unrealized gains (losses) on investments			Total from investment operations			Dividends from net investment income
Class A
For the six months ended June 30, 2018 (Unaudited)	$	16.01		0.03			0.08			0.11			—
For the year ended December 31, 2017	$	13.35		0.03			2.63			2.66			—
For the year ended December 31, 2016	$	12.36		(0.01	)		1.17			1.16			—
For the year ended December 31, 2015	$	12.96		0.00	(G)		(0.19	)		(0.19	)		—
For the year ended December 31, 2014	$	13.00		0.05			1.38			1.43			(0.05	)
For the year ended December 31, 2013	$	10.45		0.05			4.48			4.53			(0.09	)
Class C
For the six months ended June 30, 2018 (Unaudited)	$	15.11		(0.03	)		0.08			0.05			—
For the year ended December 31, 2017	$	12.69		(0.07	)		2.49			2.42			—
For the year ended December 31, 2016	$	11.85		(0.09	)		1.10			1.01			—
For the year ended December 31, 2015	$	12.54		(0.10	)		(0.18	)		(0.28	)		—
For the year ended December 31, 2014	$	12.67		(0.05	)		1.34			1.29			—
For the year ended December 31, 2013	$	10.25		(0.04	)		4.38			4.34			(0.03	)
Class I
For the six months ended June 30, 2018 (Unaudited)	$	16.11		0.05			0.08			0.13			—
For the year ended December 31, 2017	$	13.40		0.07			2.65			2.72			(0.01	)
For the year ended December 31, 2016	$	12.39		0.03			1.16			1.19			(0.01	)
For the year ended December 31, 2015	$	12.95		0.03			(0.18	)		(0.15	)		—
For the year ended December 31, 2014	$	12.97		0.09			1.38			1.47			(0.07	)
For the year ended December 31, 2013	$	10.43		0.09			4.46			4.55			(0.12	)
Class Y
For the six months ended June 30, 2018 (Unaudited)	$	16.14		0.06			0.08			0.14			—
For the year ended December 31, 2017	$	13.42		0.09			2.65			2.74			(0.02	)
For the year ended December 31, 2016	$	12.41		0.04			1.17			1.21			(0.03	)
For the year ended December 31, 2015	$	12.96		0.05			(0.19	)		(0.14	)		—
For the year ended December 31, 2014	$	12.99		0.10			1.39			1.49			(0.10	)
For the year ended December 31, 2013	$	10.43		0.11			4.48			4.59			(0.14	)

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

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

^(C)  The Fund's adviser has contractually agreed to waive fees in the pro-rata amount of the management fee charged by the underlying Diamond Hill Fund on each Fund's investment in such other Diamond Hill Fund. If such fee waiver had not occurred, the ratios would have been as indicated.

See accompanying Notes to Financial Statements.

86 DIAMOND HILL FUNDS | SEMI- ANNUAL REPORT | JUNE 30, 2018 | DIAMOND-HILL.COM

Distributions from net realized gains			Total distributions			Net asset value end of period		Total return(B)			Net assets at end of period (000’s)		Ratio of total net expenses to average net assets			Ratio of total gross expenses to average net assets(C)			Ratio of net investment income (loss) to average net assets			Portfolio turnover rate(D)
	—			—		$	16.12		0.69	%(E)	$	11,349		1.16	%(F)		1.17	%(F)		0.31	%(F)		29	%(E)
	—			—		$	16.01		19.93	%	$	13,480		1.17	%		1.18	%		0.21	%		52	%
	(0.17	)		(0.17	)	$	13.35		9.37	%	$	14,963		1.19	%		1.19	%		(0.09	)%		70	%
	(0.41	)		(0.41	)	$	12.36		(1.44	)%	$	43,638		1.19	%		1.19	%		(0.01	)%		89	%
	(1.42	)		(1.47	)	$	12.96		11.30	%	$	12,963		1.20	%		1.20	%		0.36	%		53	%
	(1.89	)		(1.98	)	$	13.00		44.04	%	$	8,905		1.22	%		1.22	%		0.42	%		70	%
	—			—		$	15.16		0.33	%(E)	$	9,286		1.91	%(F)		1.92	%(F)		(0.43	)%(F)		29	%(E)
	—			—		$	15.11		19.07	%	$	11,072		1.92	%		1.93	%		(0.54	)%		52	%
	(0.17	)		(0.17	)	$	12.69		8.51	%	$	12,269		1.94	%		1.94	%		(0.81	)%		70	%
	(0.41	)		(0.41	)	$	11.85		(2.21	)%	$	15,022		1.94	%		1.94	%		(0.78	)%		89	%
	(1.42	)		(1.42	)	$	12.54		10.46	%	$	8,265		1.95	%		1.95	%		(0.39	)%		53	%
	(1.89	)		(1.92	)	$	12.67		43.08	%	$	5,533		1.97	%		1.97	%		(0.35	)%		70	%
	—			—		$	16.24		0.81	%(E)	$	128,430		0.87	%(F)		0.88	%(F)		0.62	%(F)		29	%(E)
	—			(0.01	)	$	16.11		20.33	%	$	136,233		0.87	%		0.88	%		0.52	%		52	%
	(0.17	)		(0.18	)	$	13.40		9.62	%	$	93,192		0.90	%		0.90	%		0.24	%		70	%
	(0.41	)		(0.41	)	$	12.39		(1.14	)%	$	81,408		0.92	%		0.92	%		0.25	%		89	%
	(1.42	)		(1.49	)	$	12.95		11.57	%	$	31,999		0.95	%		0.95	%		0.64	%		53	%
	(1.89	)		(2.01	)	$	12.97		44.35	%	$	46,787		0.97	%		0.97	%		0.66	%		70	%
	—			—		$	16.28		0.87	%(E)	$	65,989		0.75	%(F)		0.76	%(F)		0.77	%(F)		29	%(E)
	—			(0.02	)	$	16.14		20.45	%	$	21,628		0.77	%		0.78	%		0.61	%		52	%
	(0.17	)		(0.20	)	$	13.42		9.72	%	$	18,456		0.80	%		0.80	%		0.36	%		70	%
	(0.41	)		(0.41	)	$	12.41		(1.06	)%	$	10,703		0.80	%		0.80	%		0.35	%		89	%
	(1.42	)		(1.52	)	$	12.96		11.74	%	$	8,746		0.80	%		0.80	%		0.76	%		53	%
	(1.89	)		(2.03	)	$	12.99		44.70	%	$	6,534		0.82	%		0.82	%		0.82	%		70	%

^(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.

^(G)  Amount is less than $0.005.

See accompanying Notes to Financial Statements.

DIAMOND HILL FUNDS | SEMI- ANNUAL REPORT | JUNE 30, 2018 | DIAMOND-HILL.COM 87

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)(A)			Net realized and unrealized gains (losses) on investments			Total from investment operations			Dividends from net investment income
Class A
For the six months ended June 30, 2018 (Unaudited)	$	25.76		0.05			(0.52	)		(0.47	)		—
For the year ended December 31, 2017	$	24.91		(0.05	)		1.45			1.40			—
For the year ended December 31, 2016	$	23.36		(0.09	)		2.49			2.40			—
For the year ended December 31, 2015	$	23.87		(0.11	)		(0.29	)		(0.40	)		—
For the year ended December 31, 2014	$	22.26		(0.08	)		1.69			1.61			—
For the year ended December 31, 2013	$	18.15		(0.05	)		4.21			4.16			(0.05	)
Class C
For the six months ended June 30, 2018 (Unaudited)	$	23.04		(0.04	)		(0.46	)		(0.50	)		—
For the year ended December 31, 2017	$	22.51		(0.22	)		1.30			1.08			—
For the year ended December 31, 2016	$	21.34		(0.24	)		2.26			2.02			—
For the year ended December 31, 2015	$	21.98		(0.27	)		(0.26	)		(0.53	)		—
For the year ended December 31, 2014	$	20.65		(0.23	)		1.56			1.33			—
For the year ended December 31, 2013	$	16.93		(0.19	)		3.91			3.72			—
Class I
For the six months ended June 30, 2018 (Unaudited)	$	26.39		0.09			(0.53	)		(0.44	)		—
For the year ended December 31, 2017	$	25.43		0.02			1.50			1.52			(0.01	)
For the year ended December 31, 2016	$	23.77		(0.02	)		2.53			2.51			—
For the year ended December 31, 2015	$	24.22		(0.05	)		(0.29	)		(0.34	)		—
For the year ended December 31, 2014	$	22.52		(0.02	)		1.72			1.70			—
For the year ended December 31, 2013	$	18.35		0.00	(I)		4.26			4.26			(0.09	)
Class Y
For the six months ended June 30, 2018 (Unaudited)	$	26.49		0.10			(0.52	)		(0.42	)		—
For the year ended December 31, 2017	$	25.53		0.05			1.49			1.54			(0.03	)
For the year ended December 31, 2016	$	23.83		0.01			2.54			2.55			—
For the year ended December 31, 2015	$	24.25		(0.02	)		(0.29	)		(0.31	)		—
For the year ended December 31, 2014	$	22.52		0.01			1.72			1.73			—
For the year ended December 31, 2013	$	18.35		0.04			4.25			4.29			(0.12	)

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

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

^(C)  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 1.37% for Class A, 2.12% for Class C, 1.07% for Class I and 0.96% for Class Y.

^(D)  The Fund's adviser has contractually agreed to waive fees in the pro-rata amount of the management fee charged by the underlying Diamond Hill Fund on each Fund's investment in such other Diamond Hill Fund. If such fee waiver had not occurred, the ratios would have been as indicated.

See accompanying Notes to Financial Statements.

88 DIAMOND HILL FUNDS | SEMI- ANNUAL REPORT | JUNE 30, 2018 | DIAMOND-HILL.COM

Distributions from net realized gains			Total distributions			Net asset value end of period		Total return(B)			Net assets at end of period (000’s)		Ratio of total net expenses to average net assets(C)			Ratio of total gross expenses to average net assets(D)			Ratio of net investment income (loss) to average net assets			Portfolio turnover rate(E)
	—			—		$	25.29		(1.82	)%(F)	$	278,627		1.75	%(G)		1.76	%(G)		0.36	%(G)		33	%(F)
	(0.55	)		(0.55	)	$	25.76		5.65	%	$	358,395		1.95	%		1.96	%		(0.22	)%		43	%(H)
	(0.85	)		(0.85	)	$	24.91		10.26	%	$	460,104		2.06	%		2.06	%		(0.20	)%		45	%
	(0.11	)		(0.11	)	$	23.36		(1.67	)%	$	569,218		1.89	%		1.89	%		(0.47	)%		81	%
	—			—		$	23.87		7.23	%	$	703,572		1.83	%		1.83	%		(0.33	)%		60	%
	—			(0.05	)	$	22.26		22.92	%	$	858,112		1.83	%		1.83	%		(0.25	)%		30	%
	—			—		$	22.54		(2.17	)%(F)	$	100,252		2.50	%(G)		2.51	%(G)		(0.39	)%(G)		33	%(F)
	(0.55	)		(0.55	)	$	23.04		4.83	%	$	115,009		2.70	%		2.71	%		(0.97	)%		43	%(H)
	(0.85	)		(0.85	)	$	22.51		9.45	%	$	145,313		2.81	%		2.81	%		(1.13	)%		45	%
	(0.11	)		(0.11	)	$	21.34		(2.40	)%	$	169,861		2.64	%		2.64	%		(1.22	)%		81	%
	—			—		$	21.98		6.44	%	$	170,278		2.58	%		2.58	%		(1.09	)%		60	%
	—			—		$	20.65		21.97	%	$	130,388		2.58	%		2.58	%		(0.99	)%		30	%
	—			—		$	25.95		(1.67	)%(F)	$	3,421,599		1.45	%(G)		1.46	%(G)		0.66	%(G)		33	%(F)
	(0.55	)		(0.56	)	$	26.39		5.99	%	$	4,032,586		1.65	%		1.66	%		0.09	%		43	%(H)
	(0.85	)		(0.85	)	$	25.43		10.55	%	$	3,589,749		1.76	%		1.76	%		(0.09	)%		45	%
	(0.11	)		(0.11	)	$	23.77		(1.40	)%	$	3,382,697		1.62	%		1.62	%		(0.21	)%		81	%
	—			—		$	24.22		7.55	%	$	2,817,671		1.58	%		1.58	%		(0.09	)%		60	%
	—			(0.09	)	$	22.52		23.19	%	$	1,859,054		1.58	%		1.58	%		0.00	%(J)		30	%
	—			—		$	26.07		(1.59	)%(F)	$	246,026		1.34	%(G)		1.35	%(G)		0.77	%(G)		33	%(F)
	(0.55	)		(0.58	)	$	26.49		6.07	%	$	260,735		1.55	%		1.56	%		0.19	%		43	%(H)
	(0.85	)		(0.85	)	$	25.53		10.69	%	$	227,680		1.67	%		1.67	%		0.02	%		45	%
	(0.11	)		(0.11	)	$	23.83		(1.27	)%	$	290,928		1.50	%		1.50	%		(0.08	)%		81	%
	—			—		$	24.25		7.68	%	$	280,595		1.43	%		1.43	%		0.06	%		60	%
	—			(0.12	)	$	22.52		23.39	%	$	168,835		1.43	%		1.43	%		0.18	%		30	%

^(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)  The portfolio turnover rate for 2017 would have been 32% if the absolute value of securities sold short liability was included in the denominator of the calculation.

^(I)  Amount is less than $0.005.

^(J)  Amount is less than 0.005%.

See accompanying Notes to Financial Statements.

DIAMOND HILL FUNDS | SEMI- ANNUAL REPORT | JUNE 30, 2018 | DIAMOND-HILL.COM 89

Research Opportunities Fund
Financial Highlights

Selected data for a share outstanding throughout the periods indicated

Research Opportunities Fund	Net asset value beginning of period		Net investment income (loss)(A)			Net realized and unrealized gains (losses) on investments			Total from investment operations			Dividends from net investment income
Class A
For the six months ended June 30, 2018 (Unaudited)	$	23.56		(0.02	)		0.09			0.07			—
For the year ended December 31, 2017	$	21.44		(0.12	)		2.89			2.77			—
For the year ended December 31, 2016	$	19.70		(0.04	)		1.94			1.90			—
For the year ended December 31, 2015	$	22.52		(0.06	)		(1.14	)		(1.20	)		—
For the year ended December 31, 2014	$	22.82		(0.07	)		1.62			1.55			(0.02	)
For the year ended December 31, 2013	$	18.34		(0.10	)		6.01			5.91			—
Class C
For the six months ended June 30, 2018 (Unaudited)	$	22.40		(0.10	)		0.09			(0.01	)		—
For the year ended December 31, 2017	$	20.57		(0.28	)		2.76			2.48			—
For the year ended December 31, 2016	$	19.06		(0.19	)		1.86			1.67			—
For the year ended December 31, 2015	$	22.00		(0.21	)		(1.11	)		(1.32	)		—
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			—
Class I
For the six months ended June 30, 2018 (Unaudited)	$	23.83		0.01			0.09			0.10			—
For the year ended December 31, 2017	$	21.61		(0.06	)		2.93			2.87			—
For the year ended December 31, 2016	$	19.81		0.02			1.94			1.96			—
For the year ended December 31, 2015	$	22.61		(0.01	)		(1.13	)		(1.14	)		(0.04	)
For the year ended December 31, 2014	$	22.90		(0.01	)		1.62			1.61			(0.07	)
For the year ended December 31, 2013	$	18.36		(0.04	)		6.01			5.97			(0.00	)(H)
Class Y
For the six months ended June 30, 2018 (Unaudited)	$	23.88		0.03			0.08			0.11			—
For the year ended December 31, 2017	$	21.63		(0.03	)		2.93			2.90			—
For the year ended December 31, 2016	$	19.80		0.04			1.95			1.99			—
For the year ended December 31, 2015	$	22.64		0.02			(1.14	)		(1.12	)		(0.10	)
For the year ended December 31, 2014	$	22.92		0.03			1.62			1.65			(0.10	)
For the year ended December 31, 2013	$	18.36		0.00	(H)		6.02			6.02			(0.03	)

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

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

^(C)  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 1.42% for Class A, 2.17% for Class C, 1.13% for Class I and 1.01% for Class Y.

^(D)  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.

90 DIAMOND HILL FUNDS | SEMI- ANNUAL REPORT | JUNE 30, 2018 | DIAMOND-HILL.COM

Distributions from net realized gains			Total distributions			Net asset value end of period		Total return(B)			Net assets at end of period (000’s)		Ratio of total expenses to average net assets(C)			Ratio of net investment income (loss) to average net assets			Portfolio turnover rate(D)
	—			—		$	23.63		0.30	%(E)	$	6,293		1.80	%(F)		(0.25	)%(F)		36	%(E)
	(0.65	)		(0.65	)	$	23.56		12.98	%	$	10,533		1.84	%		(0.52	)%		83	%(G)
	(0.16	)		(0.16	)	$	21.44		9.64	%	$	4,162		2.10	%		(0.16	)%		67	%
	(1.62	)		(1.62	)	$	19.70		(5.29	)%	$	8,637		1.83	%		(0.27	)%		147	%
	(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	%
	—			—		$	22.39		(0.04	)%(E)	$	1,957		2.55	%(F)		(0.95	)%(F)		36	%(E)
	(0.65	)		(0.65	)	$	22.40		12.12	%	$	2,810		2.59	%		(1.31	)%		83	%(G)
	(0.16	)		(0.16	)	$	20.57		8.76	%	$	2,986		2.85	%		(0.93	)%		67	%
	(1.62	)		(1.62	)	$	19.06		(5.96	)%	$	5,097		2.58	%		(0.96	)%		147	%
	(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	%
	—			—		$	23.93		0.42	%(E)	$	33,361		1.50	%(F)		0.10	%(F)		36	%(E)
	(0.65	)		(0.65	)	$	23.83		13.34	%	$	35,021		1.54	%		(0.23	)%		83	%(G)
	(0.16	)		(0.16	)	$	21.61		9.89	%	$	27,588		1.80	%		0.05	%		67	%
	(1.62	)		(1.66	)	$	19.81		(5.00	)%	$	26,186		1.57	%		(0.03	)%		147	%
	(1.83	)		(1.90	)	$	22.61		7.21	%	$	49,920		1.49	%		(0.05	)%		57	%
	(1.43	)		(1.43	)	$	22.90		32.76	%	$	43,018		1.52	%		(0.17	)%		72	%
	—			—		$	23.99		0.46	%(E)	$	20,590		1.39	%(F)		0.22	%(F)		36	%(E)
	(0.65	)		(0.65	)	$	23.88		13.47	%	$	20,521		1.44	%		(0.14	)%		83	%(G)
	(0.16	)		(0.16	)	$	21.63		10.05	%	$	16,755		1.70	%		0.19	%		67	%
	(1.62	)		(1.72	)	$	19.80		(4.91	)%	$	15,285		1.44	%		0.10	%		147	%
	(1.83	)		(1.93	)	$	22.64		7.37	%	$	17,307		1.34	%		0.11	%		57	%
	(1.43	)		(1.46	)	$	22.92		32.99	%	$	15,468		1.37	%		0.02	%		72	%

^(E)  Not annualized.

^(F)  Annualized.

^(G)  The portfolio turnover rate for 2017 would have been 68% if the absolute value of the securities sold short liability was included in the denominator of the calculation.

^(H)  Amount is less than $0.005.

See accompanying Notes to Financial Statements.

DIAMOND HILL FUNDS | SEMI- ANNUAL REPORT | JUNE 30, 2018 | DIAMOND-HILL.COM 91

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)(A)			Net realized and unrealized gains (losses) on investments			Total from investment operations			Dividends from net investment income
Class A
For the six months ended June 30, 2018 (Unaudited)	$	24.67		0.06			(0.46	)		(0.40	)		—
For the year ended December 31, 2017	$	22.11		(0.03	)		2.59			2.56			—
For the year ended December 31, 2016	$	18.62		0.03			3.46			3.49			—
For the year ended December 31, 2015	$	19.61		0.00	(H)		(0.92	)		(0.92	)		(0.07	)
For the year ended December 31, 2014	$	18.13		(0.02	)		1.50			1.48			—
For the year ended December 31, 2013	$	13.24		(0.05	)		4.94			4.89			—
Class C
For the six months ended June 30, 2018 (Unaudited)	$	22.54		(0.03	)		(0.41	)		(0.44	)		—
For the year ended December 31, 2017	$	20.35		(0.19	)		2.38			2.19			—
For the year ended December 31, 2016	$	17.28		(0.10	)		3.17			3.07			—
For the year ended December 31, 2015	$	18.26		(0.13	)		(0.85	)		(0.98	)		—
For the year ended December 31, 2014	$	17.00		(0.15	)		1.41			1.26			—
For the year ended December 31, 2013	$	12.51		(0.17	)		4.66			4.49			—
Class I
For the six months ended June 30, 2018 (Unaudited)	$	24.74		0.10			(0.46	)		(0.36	)		—
For the year ended December 31, 2017	$	22.14		0.04			2.60			2.64			(0.04	)
For the year ended December 31, 2016	$	18.59		0.09			3.46			3.55			—
For the year ended December 31, 2015	$	19.57		0.05			(0.91	)		(0.86	)		(0.12	)
For the year ended December 31, 2014	$	18.10		0.02			1.50			1.52			(0.05	)
For the year ended December 31, 2013	$	13.18		(0.02	)		4.94			4.92			—

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

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

^(C)  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 1.07% for Class A, 1.81% for Class C and 0.97% for Class I.

^(D)  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.

92 DIAMOND HILL FUNDS | SEMI- ANNUAL REPORT | JUNE 30, 2018 | DIAMOND-HILL.COM

Distributions from net realized gains		Total distributions			Net asset value end of period		Total return(B)			Net assets at end of period (000’s)		Ratio of total expenses to average net assets(C)			Ratio of net investment income (loss) to average net assets			Portfolio turnover rate(D)
	—		—		$	24.27		(1.62	)%(E)	$	6,729		1.65	%(F)		0.49	%(F)		23	%(E)
	—		—		$	24.67		11.58	%	$	9,243		1.89	%		(0.16	)%		27	%(G)
	—		—		$	22.11		18.74	%	$	10,161		2.00	%		0.19	%		34	%
	—		(0.07	)	$	18.62		(4.67	)%	$	10,760		1.85	%		0.02	%		63	%
	—		—		$	19.61		8.16	%	$	12,043		1.74	%		(0.10	)%		51	%
	—		—		$	18.13		36.93	%	$	17,852		1.70	%		(0.31	)%		66	%
	—		—		$	22.10		(1.95	)%(E)	$	2,009		2.40	%(F)		(0.27	)%(F)		23	%(E)
	—		—		$	22.54		10.76	%	$	1,916		2.64	%		(0.90	)%		27	%(G)
	—		—		$	20.35		17.77	%	$	1,714		2.75	%		(0.56	)%		34	%
	—		—		$	17.28		(5.37	)%	$	1,845		2.60	%		(0.75	)%		63	%
	—		—		$	18.26		7.41	%	$	2,233		2.49	%		(0.86	)%		51	%
	—		—		$	17.00		35.89	%	$	2,958		2.45	%		(1.06	)%		66	%
	—		—		$	24.38		(1.46	)%(E)	$	22,228		1.55	%(F)		0.82	%(F)		23	%(E)
	—		(0.04	)	$	24.74		11.90	%	$	23,836		1.59	%		0.16	%		27	%(G)
	—		—		$	22.14		19.10	%	$	20,518		1.71	%		0.50	%		34	%
	—		(0.12	)	$	18.59		(4.40	)%	$	14,812		1.58	%		0.24	%		63	%
	—		(0.05	)	$	19.57		8.42	%	$	15,310		1.49	%		0.12	%		51	%
	—		—		$	18.10		37.33	%	$	10,817		1.45	%		(0.12	)%		66	%

^(E)  Not annualized.

^(F)  Annualized.

^(G)  The portfolio turnover for 2017 would have been 23% if the absolute value of the securities sold short liability was included in the denominator of the calculation.

^(H)  Amount is less than $0.005.

See accompanying Notes to Financial Statements.

DIAMOND HILL FUNDS | SEMI- ANNUAL REPORT | JUNE 30, 2018 | DIAMOND-HILL.COM 93

Global Fund
Financial Highlights

Selected data for a share outstanding throughout the period indicated

Global Fund(A)	Net asset value beginning of period		Net investment income(B)		Net realized and unrealized losses on investments			Total from investment operations		Dividends from net investment income
Class A
For the period ended June 30, 2018 (Unaudited)	$	14.42		0.07		(0.05	)		0.02		—
Class I
For the period ended June 30, 2018 (Unaudited)	$	14.42		0.09		(0.05	)		0.04		—
Class Y
For the period ended June 30, 2018 (Unaudited)	$	14.42		0.10		(0.05	)		0.05		—

^(A)  Inception date of the Fund is December 31, 2017. Fund commenced public offering and operations on January 2, 2018.

^(B)  Net investment income 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.

94 DIAMOND HILL FUNDS | SEMI- ANNUAL REPORT | JUNE 30, 2018 | DIAMOND-HILL.COM

Distributions from net realized gains			Total distributions			Net asset value 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 to average net assets			Portfolio turnover rate(D)
	(0.67	)		(0.67	)	$	13.77		(0.06	)%(E)	$	38		1.19	%(F)		1.27	%(F)		53	%(E)
	(0.67	)		(0.67	)	$	13.79		0.08	%(E)	$	3,087		0.90	%(F)		1.56	%(F)		53	%(E)
	(0.67	)		(0.67	)	$	13.80		0.16	%(E)	$	11,430		0.79	%(F)		1.53	%(F)		53	%(E)

^(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, 2018 | DIAMOND-HILL.COM 95

Short Duration Total Return Fund
Financial Highlights

Selected data for a share outstanding throughout the periods indicated

Short Duration Total Return Fund(A)	Net asset value beginning of period		Net investment income(B)		Net realized and unrealized gains (losses) on investments			Total from investment operations		Dividends from net investment income
Class A
For the six months ended June 30, 2018 (Unaudited)	$	10.11		0.16		(0.04	)		0.12		(0.16	)
For the year ended December 31, 2017	$	10.04		0.30		0.09			0.39		(0.31	)
For the period ended December 31, 2016	$	10.00		0.09		0.03			0.12		(0.08	)
Class I
For the six months ended June 30, 2018 (Unaudited)	$	10.11		0.18		(0.04	)		0.14		(0.18	)
For the year ended December 31, 2017	$	10.03		0.33		0.10			0.43		(0.34	)
For the period ended December 31, 2016	$	10.00		0.10		0.03			0.13		(0.10	)
Class Y
For the six months ended June 30, 2018 (Unaudited)	$	10.11		0.18		(0.03	)		0.15		(0.18	)
For the year ended December 31, 2017	$	10.03		0.34		0.10			0.44		(0.35	)
For the period ended December 31, 2016	$	10.00		0.11		0.02			0.13		(0.10	)

^(A)  Inception date of the Fund is July 5, 2016. Fund commenced public offering and operations on July 5, 2016.

^(B)   Net investment income 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.

96 DIAMOND HILL FUNDS | SEMI- ANNUAL REPORT | JUNE 30, 2018 | DIAMOND-HILL.COM

Distributions from net realized gains			Total distributions			Net asset value 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 to average net assets			Portfolio turnover rate(D)
	—			(0.16	)	$	10.07		1.23	%(E)	$	11,249		0.82	%(F)		3.27	%(F)		33	%(E)
	(0.01	)		(0.32	)	$	10.11		3.97	%	$	20,511		0.83	%		3.03	%		82	%
	—			(0.08	)	$	10.04		1.19	%(E)	$	222		0.83	%(F)		1.12	%(F)		19	%(E)
	—			(0.18	)	$	10.07		1.38	%(E)	$	150,190		0.52	%(F)		3.60	%(F)		33	%(E)
	(0.01	)		(0.35	)	$	10.11		4.33	%	$	61,136		0.53	%		3.29	%		82	%
	—			(0.10	)	$	10.03		1.26	%(E)	$	14,707		0.53	%(F)		1.32	%(F)		19	%(E)
	—			(0.18	)	$	10.08		1.53	%(E)	$	263,924		0.41	%(F)		3.69	%(F)		33	%(E)
	(0.01	)		(0.36	)	$	10.11		4.43	%	$	231,290		0.43	%		3.33	%		82	%
	—			(0.10	)	$	10.03		1.29	%(E)	$	182,527		0.44	%(F)		1.25	%(F)		19	%(E)

^(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, 2018 | DIAMOND-HILL.COM 97

Core Bond Fund
Financial Highlights

Selected data for a share outstanding throughout the periods indicated

Core Bond Fund(A)	Net asset value beginning of period		Net investment income(B)		Net realized and unrealized gains (losses) on investments			Total from investment operations			Dividends from net investment income
Class A
For the six months ended June 30, 2018 (Unaudited)	$	9.85		0.12		(0.20	)		(0.08	)		(0.13	)
For the year ended December 31, 2017	$	9.70		0.21		0.16			0.37			(0.22	)
For the period ended December 31, 2016	$	10.00		0.07		(0.28	)		(0.21	)		(0.09	)
Class I
For the six months ended June 30, 2018 (Unaudited)	$	9.85		0.14		(0.21	)		(0.07	)		(0.14	)
For the year ended December 31, 2017	$	9.70		0.24		0.16			0.40			(0.25	)
For the period ended December 31, 2016	$	10.00		0.09		(0.30	)		(0.21	)		(0.09	)
Class Y
For the six months ended June 30, 2018 (Unaudited)	$	9.85		0.14		(0.20	)		(0.06	)		(0.14	)
For the year ended December 31, 2017	$	9.70		0.25		0.16			0.41			(0.26	)
For the period ended December 31, 2016	$	10.00		0.09		(0.30	)		(0.21	)		(0.09	)

^(A)  Inception date of the Fund is July 5, 2016. Fund commenced public offering and operations on July 5, 2016.

^(B)  Net investment income 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.

98 DIAMOND HILL FUNDS | SEMI- ANNUAL REPORT | JUNE 30, 2018 | DIAMOND-HILL.COM

Distributions from net realized gains		Total distributions			Net asset value 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 to average net assets			Portfolio turnover rate(D)
	—		(0.13	)	$	9.64		(0.86	)%(E)	$	4,441		0.77	%(F)		2.54	%(F)		15	%(E)
	—		(0.22	)	$	9.85		3.85	%	$	3,480		0.78	%		2.10	%		35	%
	—		(0.09	)	$	9.70		(2.28	)%(E)	$	2,183		0.78	%(F)		0.87	%(F)		8	%(E)
	—		(0.14	)	$	9.64		(0.73	)%(E)	$	10,754		0.48	%(F)		2.83	%(F)		15	%(E)
	—		(0.25	)	$	9.85		4.17	%	$	9,604		0.48	%		2.40	%		35	%
	—		(0.09	)	$	9.70		(2.14	)%(E)	$	8,033		0.49	%(F)		1.02	%(F)		8	%(E)
	—		(0.14	)	$	9.65		(0.57	)%(E)	$	36,593		0.36	%(F)		2.95	%(F)		15	%(E)
	—		(0.26	)	$	9.85		4.22	%	$	30,740		0.38	%		2.49	%		35	%
	—		(0.09	)	$	9.70		(2.11	)%(E)	$	29,468		0.39	%(F)		1.00	%(F)		8	%(E)

^(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, 2018 | DIAMOND-HILL.COM 99

Corporate Credit Fund
Financial Highlights

Selected data for a share outstanding throughout the periods indicated

Corporate Credit Fund	Net asset value beginning of period		Net investment income(A)		Net realized and unrealized gains (losses) on investments			Total from investment operations		Dividends from net investment income
Class A
For the six months ended June 30, 2018 (Unaudited)	$	11.32		0.31		(0.17	)		0.14		(0.30	)
For the year ended December 31, 2017	$	11.13		0.58		0.24			0.82		(0.58	)
For the year ended December 31, 2016	$	10.53		0.63		0.60			1.23		(0.62	)
For the year ended December 31, 2015	$	10.94		0.58		(0.44	)		0.14		(0.55	)
For the year ended December 31, 2014	$	11.19		0.51		(0.28	)		0.23		(0.48	)
For the year ended December 31, 2013	$	11.18		0.56		0.00	(G)		0.56		(0.55	)
Class C
For the six months ended June 30, 2018 (Unaudited)	$	11.28		0.27		(0.17	)		0.10		(0.26	)
For the year ended December 31, 2017	$	11.09		0.49		0.25			0.74		(0.50	)
For the year ended December 31, 2016	$	10.51		0.54		0.60			1.14		(0.55	)
For the year ended December 31, 2015	$	10.92		0.49		(0.43	)		0.06		(0.47	)
For the year ended December 31, 2014	$	11.17		0.42		(0.27	)		0.15		(0.40	)
For the year ended December 31, 2013	$	11.17		0.47		0.00	(G)		0.47		(0.47	)
Class I
For the six months ended June 30, 2018 (Unaudited)	$	11.28		0.32		(0.15	)		0.17		(0.32	)
For the year ended December 31, 2017	$	11.09		0.61		0.24			0.85		(0.61	)
For the year ended December 31, 2016	$	10.50		0.66		0.59			1.25		(0.65	)
For the year ended December 31, 2015	$	10.91		0.60		(0.43	)		0.17		(0.58	)
For the year ended December 31, 2014	$	11.16		0.54		(0.27	)		0.27		(0.52	)
For the year ended December 31, 2013	$	11.16		0.58		0.00	(G)		0.58		(0.58	)
Class Y
For the six months ended June 30, 2018 (Unaudited)	$	11.27		0.33		(0.16	)		0.17		(0.32	)
For the year ended December 31, 2017	$	11.09		0.62		0.24			0.86		(0.63	)
For the year ended December 31, 2016	$	10.50		0.67		0.59			1.26		(0.66	)
For the year ended December 31, 2015	$	10.91		0.62		(0.44	)		0.18		(0.59	)
For the year ended December 31, 2014	$	11.16		0.55		(0.27	)		0.28		(0.53	)
For the year ended December 31, 2013	$	11.15		0.60		0.00	(G)		0.60		(0.59	)

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

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

^(C)  The Fund's adviser has contractually agreed to waive fees in the pro-rata amount of the management fee charged by the underlying Diamond Hill Fund on each Fund's investment in such other Diamond Hill Fund. If such fee waiver had not occurred, the ratios would have been as indicated.

See accompanying Notes to Financial Statements.

100 DIAMOND HILL FUNDS | SEMI- ANNUAL REPORT | JUNE 30, 2018 | DIAMOND-HILL.COM

Distributions from net realized gains			Total distributions			Net asset value end of period		Total return(B)			Net assets at end of period (000’s)		Ratio of total net expenses to average net assets			Ratio of total gross expenses to average net assets(C)			Ratio of net investment income to average net assets			Portfolio turnover rate(D)
	—			(0.30	)	$	11.16		1.25	%(E)	$	69,144		0.90	%(F)		0.91	%(F)		5.52	%(F)		55	%(E)
	(0.05	)		(0.63	)	$	11.32		7.56	%	$	64,204		0.92	%		0.93	%		5.07	%		83	%
	(0.01	)		(0.63	)	$	11.13		11.94	%	$	71,075		0.93	%		0.93	%		5.72	%		119	%
	—			(0.55	)	$	10.53		1.19	%	$	44,354		0.95	%		0.95	%		5.24	%		48	%
	—			(0.48	)	$	10.94		2.10	%	$	31,282		1.00	%		1.00	%		4.52	%		56	%
	—			(0.55	)	$	11.19		5.13	%	$	39,801		1.02	%		1.02	%		5.00	%		60	%
	—			(0.26	)	$	11.12		0.89	%(E)	$	24,632		1.65	%(F)		1.66	%(F)		4.77	%(F)		55	%(E)
	(0.05	)		(0.55	)	$	11.28		6.77	%	$	26,656		1.67	%		1.68	%		4.33	%		83	%
	(0.01	)		(0.56	)	$	11.09		11.06	%	$	29,607		1.68	%		1.68	%		4.98	%		119	%
	—			(0.47	)	$	10.51		0.44	%	$	23,649		1.70	%		1.70	%		4.47	%		48	%
	—			(0.40	)	$	10.92		1.37	%	$	24,088		1.75	%		1.75	%		3.80	%		56	%
	—			(0.47	)	$	11.17		4.26	%	$	26,126		1.77	%		1.77	%		4.25	%		60	%
	—			(0.32	)	$	11.13		1.49	%(E)	$	576,060		0.61	%(F)		0.62	%(F)		5.82	%(F)		55	%(E)
	(0.05	)		(0.66	)	$	11.28		7.87	%	$	536,203		0.62	%		0.63	%		5.39	%		83	%
	(0.01	)		(0.66	)	$	11.09		12.21	%	$	411,465		0.64	%		0.64	%		6.00	%		119	%
	—			(0.58	)	$	10.50		1.49	%	$	247,522		0.75	%		0.75	%		5.51	%		48	%
	—			(0.52	)	$	10.91		2.38	%	$	148,737		0.77	%		0.77	%		4.82	%		56	%
	—			(0.58	)	$	11.16		5.30	%	$	117,009		0.77	%		0.77	%		5.24	%		60	%
	—			(0.32	)	$	11.12		1.55	%(E)	$	25,896		0.50	%(F)		0.51	%(F)		5.93	%(F)		55	%(E)
	(0.05	)		(0.68	)	$	11.27		7.89	%	$	25,309		0.52	%		0.53	%		5.49	%		83	%
	(0.01	)		(0.67	)	$	11.09		12.34	%	$	21,310		0.54	%		0.54	%		6.33	%		119	%
	—			(0.59	)	$	10.50		1.60	%	$	18,013		0.56	%		0.56	%		5.62	%		48	%
	—			(0.53	)	$	10.91		2.54	%	$	15,831		0.60	%		0.60	%		4.96	%		56	%
	—			(0.59	)	$	11.16		5.55	%	$	3,927		0.62	%		0.62	%		5.35	%		60	%

^(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.

^(G)  Amount is less than $0.005.

See accompanying Notes to Financial Statements.

DIAMOND HILL FUNDS | SEMI- ANNUAL REPORT | JUNE 30, 2018 | DIAMOND-HILL.COM 101

High Yield Fund
Financial Highlights

Selected data for a share outstanding throughout the periods indicated

High Yield Fund(A)	Net asset value beginning of period		Net investment income(B)		Net realized and unrealized gains (losses) on investments			Total from investment operations		Dividends from net investment income
Class A
For the six months ended June 30, 2018 (Unaudited)	$	10.77		0.32		(0.11	)		0.21		(0.32	)
For the year ended December 31, 2017	$	10.65		0.65		0.38			1.03		(0.65	)
For the year ended December 31, 2016	$	10.14		0.70		0.71			1.41		(0.66	)
Class I
For the six months ended June 30, 2018 (Unaudited)	$	10.78		0.34		(0.13	)		0.21		(0.33	)
For the year ended December 31, 2017	$	10.65		0.68		0.39			1.07		(0.68	)
For the year ended December 31, 2016	$	10.14		0.73		0.71			1.44		(0.69	)
Class Y
For the six months ended June 30, 2018 (Unaudited)	$	10.78		0.35		(0.14	)		0.21		(0.33	)
For the year ended December 31, 2017	$	10.65		0.69		0.40			1.09		(0.70	)
For the year ended December 31, 2016	$	10.14		0.74		0.71			1.45		(0.70	)

^(A)  Inception date of the Fund is December 31, 2015. Fund commenced public offering and operations on January 4, 2016.

^(B)  Net investment income 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.

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Distributions from net realized gains			Total distributions			Net asset value 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 to average net assets			Portfolio turnover rate(D)
	—			(0.32	)	$	10.66		1.93	%(E)	$	1,559		0.96	%(F)		6.13	%(F)		72	%(E)
	(0.26	)		(0.91	)	$	10.77		9.96	%	$	296		0.99	%		5.89	%		137	%
	(0.24	)		(0.90	)	$	10.65		14.29	%	$	185		0.99	%		6.51	%		123	%
	—			(0.33	)	$	10.66		1.95	%(E)	$	19,106		0.67	%(F)		6.39	%(F)		72	%(E)
	(0.26	)		(0.94	)	$	10.78		10.36	%	$	14,185		0.69	%		6.23	%		137	%
	(0.24	)		(0.93	)	$	10.65		14.62	%	$	23,989		0.70	%		6.80	%		123	%
	—			(0.33	)	$	10.66		2.00	%(E)	$	29,112		0.56	%(F)		6.50	%(F)		72	%(E)
	(0.26	)		(0.96	)	$	10.78		10.48	%	$	16,623		0.59	%		6.28	%		137	%
	(0.24	)		(0.94	)	$	10.65		14.73	%	$	7,752		0.60	%		7.07	%		123	%

^(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.

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Diamond Hill Funds
Notes to Financial Statements
June 30, 2018 (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 All Cap Select Fund (“All Cap 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”), Diamond Hill Global Fund (“Global Fund”), Diamond Hill Short Duration Total Return Fund (“Short Duration Fund”), Diamond Hill Core Bond Fund (“Core Bond Fund”), Diamond Hill Corporate Credit Fund (“Corporate Credit Fund”) and Diamond Hill High Yield Fund (“High Yield Fund”) are each a diversified series of the Diamond Hill Funds (the “Trust”) (each a “Fund” and collectively the “Funds”). The Trust is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management company. As an investment company, as defined in Financial Accounting Standards Board (“FASB”) Accounting Standards Update 2013-08, each Fund follows accounting and reporting guidance under FASB Accounting Standards Codification Topic 946, “Financial Services – Investment Companies.”

With the exception of the Mid Cap Fund, Financial Long-Short Fund, Global Fund, Short Duration Fund, Core Bond Fund and High Yield Fund, the Funds offer four classes of shares: Class A, Class C, Class I and Class Y. The Mid Cap Fund, Global Fund, Short Duration Fund, Core Bond Fund and High Yield Fund offer three classes of shares: Class A, 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. With the exception of the Short Duration Fund, Core Bond Fund, Corporate Credit Fund and High Yield Fund, Class A has a maximum sales charge on purchases of 5.00% as a percentage of the original purchase price. The Short Duration Fund has a maximum sales charge on purchases of 2.25% and the Core Bond Fund, Corporate Credit Fund and High Yield Fund have a maximum sales charge on purchases of 3.50% as a percentage of the original purchase price. Class C has a contingent deferred sales charge of 1.00% for shares redeemed within one year of the purchase date.

Significant Accounting Policies

New Accounting Pronouncement:

In March 2017, FASB issued Accounting Standards Update “Premium Amortization of Purchased Callable Debt Securities” (the “ASU”) which shortens the amortization period for certain callable debt securities. Under the new guidance, the premium amortization of purchased callable debt securities that have explicit, non-contingent call features and are callable at fixed prices will be amortized to the earliest call date. The ASU does not require an accounting change for securities held at a discount, which continue to be amortized to maturity. The ASU is effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2018. Management is currently evaluating the impact, if any, of the guidance to the Funds.

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Diamond Hill Funds
Notes to Financial Statements (Continued)
June 30, 2018 (Unaudited)

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.)

● 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 (long positions) or ask (short positions) price in the principal market where such securities are normally traded. Investments in other open-end 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, if amortized cost is determined to 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, a price becomes stale, 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 Board of 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

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Diamond Hill Funds
Notes to Financial Statements (Continued)
June 30, 2018 (Unaudited)

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 Trust's Board of Trustees, fair value pricing may be used if events materially affecting the value of foreign equity 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. As of June 30, 2018, four international securities held in the Research Opportunities Fund and sixteen international securities held in the Global Fund were fair valued using this systematic valuation model. These securities had a total fair value of $2,351,106 and $4,974,856, representing 3.8% and 34.2%, respectively of net assets of the Funds.

As of June 30, 2018, the Small Cap Fund and Corporate Credit Fund had approximately 0.2% and 0.1%, respectively, of their net assets valued using estimates provided by the Fair Value Committee.

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 and 2 as of June 30, 2018 based on input levels assigned at December 31, 2017.

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, 2018:

	Level 1 - Quoted Prices		Level 2 - Other Significant Observable Inputs		Level 3 - Significant Unobservable Inputs		Total
Investments in Securities (Assets)
Small Cap Fund
Common Stocks*	$	1,222,538,606	$	—	$	3,081,741	$	1,225,620,347
Registered Investment Companies		341,690,742		—		—		341,690,742
Total	$	1,564,229,348	$	—	$	3,081,741	$	1,567,311,089
Small-Mid Cap Fund
Common Stocks*	$	2,279,881,511	$	—	$	—	$	2,279,881,511
Registered Investment Companies		387,588,114		—		—		387,588,114
Total	$	2,667,469,625	$	—	$	—	$	2,667,469,625

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Diamond Hill Funds
Notes to Financial Statements (Continued)
June 30, 2018 (Unaudited)

	Level 1 - Quoted Prices		Level 2 - Other Significant Observable Inputs		Level 3 - Significant Unobservable Inputs		Total
Mid Cap Fund
Common Stocks*	$	112,707,757	$	—	$	—	$	112,707,757
Registered Investment Companies		14,901,432		—		—		14,901,432
Total	$	127,609,189	$	—	$	—	$	127,609,189
Large Cap Fund
Common Stocks*	$	5,900,195,141	$	—	$	—	$	5,900,195,141
Registered Investment Companies		150,443,495		—		—		150,443,495
Total	$	6,050,638,636	$	—	$	—	$	6,050,638,636
All Cap Select Fund
Common Stocks*	$	207,214,378	$	—	$	—	$	207,214,378
Registered Investment Companies		12,608,213		—		—		12,608,213
Total	$	219,822,591	$	—	$	—	$	219,822,591
Long-Short Fund
Common Stocks*	$	3,431,451,722	$	—	$	—	$	3,431,451,722
Registered Investment Companies		1,381,275,016		—		—		1,381,275,016
Total	$	4,812,726,738	$	—	$	—	$	4,812,726,738
Research Opportunities Fund
Common Stocks*	$	64,751,024	$	2,351,106	$	—	$	67,102,130
Corporate Bonds*		—		1,186,000		—		1,186,000
Registered Investment Companies		17,456,851		—		—		17,456,851
Total	$	82,207,875	$	3,537,106	$	—	$	85,744,981
Financial Long-Short Fund
Common Stocks*	$	30,871,659	$	—	$	—	$	30,871,659
Registered Investment Companies		8,881,126		—		—		8,881,126
Total	$	39,752,785	$	—	$	—	$	39,752,785
Global Fund
Common Stocks*	$	9,444,404	$	4,974,856	$	—	$	14,419,260
Registered Investment Companies		836,613		—		—		836,613
Total	$	10,281,017	$	4,974,856	$	—	$	15,255,873
Short Duration Fund
Corporate Credit*	$	—	$	32,721,962	$	—	$	32,721,962
Securitized*		—		368,382,034		—		368,382,034
Treasury		—		22,487,095		—		22,487,095
Registered Investment Companies		17,361,993		—		—		17,361,993
Total	$	17,361,993	$	423,591,091	$	—	$	440,953,084

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Diamond Hill Funds
Notes to Financial Statements (Continued)
June 30, 2018 (Unaudited)

	Level 1 - Quoted Prices			Level 2 - Other Significant Observable Inputs		Level 3 - Significant Unobservable Inputs		Total
Core Bond Fund
Corporate Credit*	$	—		$	9,240,085	$	—	$	9,240,085
Government Related		—			630,105		—		630,105
Securitized*		—			31,515,560		—		31,515,560
Treasury		—			10,081,698		—		10,081,698
Registered Investment Companies		4,523,396			—		—		4,523,396
Total	$	4,523,396		$	51,467,448	$	—	$	55,990,844
Corporate Credit Fund
Collateralized Debt Obligations	$	—		$	1,039,449	$	—	$	1,039,449
Corporate Bonds*		—			612,345,859		—		612,345,859
Registered Investment Companies		212,667,546			—		—		212,667,546
Total	$	212,667,546		$	613,385,308	$	—	$	826,052,854
High Yield Fund
Corporate Bonds*	$	—		$	47,841,459	$	—	$	47,841,459
Registered Investment Companies		8,826,187			—		—		8,826,187
Total	$	8,826,187		$	47,841,459	$	—	$	56,667,646
Investments in Securities Sold Short (Liabilities)
Long-Short Fund
Common Stocks*	$	(845,580,009	)	$	—	$	—	$	(845,580,009	)
Registered Investment Companies		(6,733,578	)		—		—		(6,733,578	)
Total	$	(852,313,587	)	$	—	$	—	$	(852,313,587	)
Research Opportunities Fund
Common Stocks*	$	(13,302,926	)	$	—	$	—	$	(13,302,926	)
Financial Long-Short Fund
Common Stocks*	$	(4,214,345	)	$	—	$	—	$	(4,214,345	)

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

The following table presents the Small Cap Fund's assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the six months ended June 30, 2018.

	Common Stocks
Value, December 31, 2017	$	14,144,401
Purchases		—
Sales		—
Net realized gains		—
Net change in unrealized appreciations (depreciation)		(11,062,660	)
Value, June 30, 2018	$	3,081,741

There were no transfers into or out of Level 3 as of June 30, 2018.

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Diamond Hill Funds
Notes to Financial Statements (Continued)
June 30, 2018 (Unaudited)

The following table summarizes the valuation techniques used and unobservable inputs approved and monitored by the Board of Trustees to determine the fair value of Small Cap Fund’s Level 3 common stocks as of June 30, 2018:

	Fair Value	Valuation Technique	Unobservable Input	Range	Impact to Valuation From a Decrease in Input
Common stocks	$3,081,741	Net present value calculation of net asset value of the liquidating trust	Value of assets and liabilities in liquidating trust	$1.61 per share	Decrease in Valuation
			Discount rate	0%-9%	Increase in valuation

This security is presently part of a liquidating trust. The Fair Value Committee’s valuation method for this security is based on calculating a share price based on the net asset value by reviewing the latest available public information on assets and liabilities held in the liquidating trust. Once the net asset value is calculated, the Fair Value Committee applies an appropriate market discount rate used to calculate the net present value of the expected cash flows that will potentially be received by the Fund.

Short sales — The Long-Short Fund, Research Opportunities Fund, Financial Long-Short Fund and Corporate Credit 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 that 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 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 and other liquid securities are maintained by the custodian and are used as collateral. Cash collateral is shown 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. Liquid securities pledged as collateral are noted 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 adviser, 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. The contractual maturity of securities lending transactions are on an overnight and continuous basis. 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

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Diamond Hill Funds
Notes to Financial Statements (Continued)
June 30, 2018 (Unaudited)

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 a portion of their respective net securities lending income and pay State Street the remaining portion.

As of June 30, 2018, the fair value of securities on loan and the collateral held were as follows:

	Fair Value of Securities Loaned		Fair Value of Collateral Received
Small Cap Fund	$	109,305,683	$	113,652,595
Small-Mid Cap Fund		181,810,228		188,757,519
Mid Cap Fund		4,535,346		4,726,716
Large Cap Fund		63,670,632		65,781,420
All Cap Select Fund		3,336,788		3,426,431
Long-Short Fund		925,279,024		946,140,560
Research Opportunities Fund		17,004,662		17,450,120
Financial Long-Short Fund		8,649,719		8,881,126
Global Fund		512,423		524,887
Short Duration Fund		9,689,242		9,894,063
Core Bond Fund		4,082,871		4,165,963
Corporate Credit Fund		122,663,845		125,397,283
High Yield Fund		6,374,026		6,508,048

Security transactions — Throughout the reporting period, investment transactions are generally recorded on trade date but no later than the first business day following trade date. For financial reporting purposes, investments are recorded on trade date. 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 (also known as “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.

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Diamond Hill Funds
Notes to Financial Statements (Continued)
June 30, 2018 (Unaudited)

Federal income taxes — The Funds may be subject to taxes imposed by countries in which they invest. Such taxes are generally based on income and/or capital gains earned or repatriated. Taxes are accrued and applied to net investment income, net realized gains and unrealized appreciation as such income and/or gains are earned.

Each Fund has complied and intends 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 recognize tax benefits or expenses of uncertain tax positions only when the position is “more likely than not” to be sustained assuming examination by tax authorities. Management of the Funds has reviewed tax positions taken in tax years that remain subject to examination by all major tax jurisdictions, including federal (i.e., the previous three tax year ends and the interim tax period since then, as applicable) and has concluded that no provision for unrecognized tax benefits or expenses is required in these financial statements and does not expect this to change over the next twelve months. The Funds recognize interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the Statement of Operations. During the six months ended June 30, 2018, the Funds did not incur any interest or penalties.

Distributions to shareholders — Dividends from net investment income are declared and paid monthly for the Short Duration Fund, Core Bond Fund, Corporate Credit Fund and High Yield 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, All Cap Select Fund, Long-Short Fund, Research Opportunities Fund, Financial Long-Short Fund and Global Fund. Dividends are declared separately for each class. No class has preferential dividend rights; differences in per share rates are due to differences in the expenses of each class. 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 are allocated daily to each class of shares of a Fund 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.

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Diamond Hill Funds
Notes to Financial Statements (Continued)
June 30, 2018 (Unaudited)

Foreign securities 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 (losses) on investments in the Statements of Operations. Net realized and unrealized gains (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, 2018, 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	$	167,560,297	$	147,760,386
Small-Mid Cap Fund		285,191,067		328,134,549
Mid Cap Fund		13,490,903		12,355,045
Large Cap Fund		962,200,430		614,446,364
All Cap Select Fund		89,354,171		58,320,607
Long-Short Fund		1,264,121,011		1,394,151,333
Research Opportunities Fund		24,788,731		25,933,105
Financial Long-Short Fund		7,650,744		7,591,077
Global Fund		19,413,836		6,810,086
Short Duration Fund		218,405,957		115,023,186
Core Bond Fund		18,029,995		7,053,070
Corporate Credit Fund		396,799,122		339,186,245
High Yield Fund		47,263,396		28,286,313

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Diamond Hill Funds
Notes to Financial Statements (Continued)
June 30, 2018 (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, 2018:

	Total Commissions		Commissions as a % of Average Net Assets
Small Cap Fund	$	142,159	0.01%
Small-Mid Cap Fund		219,594	0.01%
Mid Cap Fund		7,428	0.01%
Large Cap Fund		544,845	0.01%
All Cap Select Fund		48,744	0.02%
Long-Short Fund		732,150	0.02%
Research Opportunities Fund		18,472	0.03%
Financial Long-Short Fund		6,895	0.02%
Global Fund		12,344	0.10%

Investment Advisory Fees and Other Transactions with Affiliates

As of June 30, 2018, the Small Cap Fund, Small-Mid Cap Fund, Mid Cap Fund, Large Cap Fund, All Cap Select Fund, Long-Short Fund, Research Opportunities Fund, Financial Long-Short Fund, Global Fund, Short Duration Fund, Core Bond Fund, Corporate Credit Fund and High Yield Fund each receive investment management and advisory services from DHCM under management agreements that provide for fees to be paid monthly at an annual rate of 0.80%, 0.75%, 0.60%, 0.50%, 0.70%, 0.90%, 0.95%, 0.95%, 0.70%, 0.35%, 0.30%, 0.45% and 0.50%, respectively, of the Fund’s average daily net assets. The management agreements are subject to annual approval by the Board of Trustees. In addition, each Fund has entered into an administrative services agreement whereby DHCM is paid a fee monthly at an annual rate of 0.21% for Class A Shares and Class C Shares, 0.17% for Class I Shares and 0.05% for Class Y shares of each class’ average daily net assets. Prior to February 28, 2018, the fees paid by Class A shares, Class C shares, Class I shares and Class Y shares under the administrative services agreement were 0.23%, 0.23%, 0.18% and 0.08%, respectively, 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 monthly at an annual rate of 0.25% of Class A average daily net assets. Class C shares pay distribution and shareholder-servicing fees monthly 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 not subject

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Diamond Hill Funds
Notes to Financial Statements (Continued)
June 30, 2018 (Unaudited)

to any distribution or shareholder-servicing fees. The Trust has entered into a Distribution Agreement on behalf of the Funds with Foreside Financial Services, LLC (formerly BHIL Distributors, LLC) (“Distributor”). Pursuant to the Distribution Agreement, the Distributor acts as principal underwriter of each Fund’s shares.

During the six months ended June 30, 2018, the Distributor retained the following amounts in sales commissions from the sales of Class A shares of the Funds as follows:

Small Cap Fund	$	1,512
Small-Mid Cap Fund		1,653
Mid Cap Fund		892
Large Cap Fund		11,137
All Cap Select Fund		480
Long-Short Fund		7,989
Research Opportunities Fund		772
Financial Long-Short Fund		1,259
Short Duration Fund		893
Corporate Credit Fund		3,351
High Yield Fund		879

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 during the six months ended June 30, 2018 as follows:

Small Cap Fund	$	225
Small-Mid Cap Fund		714
Large Cap Fund		1,301
Long-Short Fund		164
Research Opportunities Fund		121
Corporate Credit Fund		378

114 DIAMOND HILL FUNDS | SEMI- ANNUAL REPORT | JUNE 30, 2018 | DIAMOND-HILL.COM

Diamond Hill Funds
Notes to Financial Statements (Continued)
June 30, 2018 (Unaudited)

The Funds may invest in one or more Diamond Hill Funds. The Fund's adviser has contractually agreed to waive fees in the pro-rata amount of the management fee charged by the underlying Diamond Hill Fund on each Fund’s investment in such other Diamond Hill Funds. This fee waiver is accrued daily and settled monthly. During the six months ended June 30, 2018, the Funds reduced investment advisory fees as follows:

Small Cap Fund	$	93,485
Small-Mid Cap Fund		82,560
Mid Cap Fund		3,779
All Cap Select Fund		4,951
Long-Short Fund		152,907
Corporate Credit Fund		45,535

The Small Cap Fund, Small-Mid Cap Fund, Mid Cap Fund, All Cap Select Fund, Long-Short Fund and Corporate Credit Fund each own Class Y shares of the Short Duration Fund, thereby making the Short Duration Fund an affiliated company as defined by the 1940 Act.

Information regarding the Funds’ holdings in the Short Duration Fund during the six months ended June 30, 2018 is as follows:

Affiliated Fund	Small Cap Fund			Small-Mid Cap Fund			Mid Cap Fund			All Cap Select Fund			Long-Short Fund			Corporate Credit Fund
Short Duration Fund
Value, December 31, 2017	$	56,711,326		$	47,270,443		$	2,163,880		$	2,834,923		$	83,461,099		$	26,071,860
Purchases		969,801			862,130			39,465			51,704			6,601,889			475,505
Sales		(5,000,000	)		—			—			—			—			—
Realized Losses		(4,768	)		—			—			—			—			—
Change in Unrealized Appreciation (Depreciation)		(155,925	)		(140,552	)		(6,434	)		(8,429	)		(261,062	)		(77,523	)
Value, June 30, 2018	$	52,520,434		$	47,992,021		$	2,196,911		$	2,878,198		$	89,801,926		$	26,469,842
Income Distributions	$	969,802		$	862,130		$	39,465		$	51,704		$	1,598,889		$	475,505

The Officers of the Trust are affiliated with DHCM. 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. Each Trustee receives an annual retainer of $50,000, an in person meeting fee of $8,000 and a July telephonic meeting fee of $2,000 from DHCM. The Independent Chairperson of the Board also receives an additional $3,000 for each in person meeting. The Audit and Nominating Committee Chairpersons receive an additional $2,000 per

DIAMOND HILL FUNDS | SEMI- ANNUAL REPORT | JUNE 30, 2018 | DIAMOND-HILL.COM 115

Diamond Hill Funds
Notes to Financial Statements (Continued)
June 30, 2018 (Unaudited)

Committee meeting. Collectively, the Independent Trustees were paid $172,000 in fees during the six months ended June 30, 2018. In addition, DHCM reimburses Trustees for out-of-pocket expenses incurred in conjunction with attendance of meetings.

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 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 to shareholders may differ from the character of distributions shown on the Statements of Changes in Net Assets, as certain items such as short-term capital gains are treated as ordinary income for tax purposes.

The tax character of distributions paid during the year ended December 31, 2017 was as follows:

	Small Cap Fund		Small-Mid Cap Fund		Mid Cap Fund		Large Cap Fund
Distributions paid from:
Ordinary income	$	8,953,988	$	19,398,370	$	748,623	$	66,986,238
Long-term capital gains		88,772,138		65,486,019		1,302,765		200,036,620
Total distributions	$	97,726,126	$	84,884,389	$	2,051,388	$	267,022,858

	All Cap Select Fund		Long-Short Fund		Research Opportunities Fund		Financial Long-Short Fund
Distributions paid from:
Ordinary income	$	156,520	$	1,671,913	$	—	$	34,066
Long-term capital gains		—		98,972,122		1,835,991		—
Total distributions	$	156,520	$	100,644,035	$	1,835,991	$	34,066

	Short Duration Fund		Core Bond Fund		Corporate Credit Fund		High Yield Fund
Distributions paid from:
Ordinary income	$	9,569,679	$	1,084,775	$	35,751,753	$	2,578,546
Long-term capital gains		—		—		—		—
Total distributions	$	9,569,679	$	1,084,775	$	35,751,753	$	2,578,546

116 DIAMOND HILL FUNDS | SEMI- ANNUAL REPORT | JUNE 30, 2018 | DIAMOND-HILL.COM

Diamond Hill Funds
Notes to Financial Statements (Continued)
June 30, 2018 (Unaudited)

The following information is computed on a tax basis for each item as of December 31, 2017:

	Small Cap Fund		Small-Mid Cap Fund			Mid Cap Fund			Large Cap Fund
Net unrealized appreciation (depreciation)on portfolio investments	$	458,989,562	$	464,623,111		$	14,825,987		$	1,540,412,000
Undistributed ordinary income		304,419		—			—			351,642
Undistributed capital gains		22,881,234		—			—			5,247,675
Post October capital losses		—		(8,389,629	)		(482,873	)		—
Accumulated capital and other losses		—		—			—			—
Accumulated earnings	$	482,175,215	$	456,233,482		$	14,343,114		$	1,546,011,317

	All Cap Select Fund		Long-Short Fund			Research Opportunities Fund		Financial Long-Short Fund
Net unrealized appreciation (depreciation) on portfolio investments	$	30,845,023	$	926,658,433		$	7,128,336	$	3,888,583
Undistributed ordinary income		608,298		—			—		3,567
Undistributed capital gains		1,971,523		—			935,332		76,098
Post October capital losses		—		(7,539,555	)		—		—
Accumulated capital and other losses		—		—			—		—
Accumulated earnings	$	33,424,844	$	919,118,878		$	8,063,668	$	3,968,248

	Short Duration Fund		Core Bond Fund			Corporate Credit Fund			High Yield Fund
Net unrealized appreciation (depreciation) on portfolio investments	$	626,709	$	(502,417	)	$	4,696,421		$	604,856
Undistributed ordinary income		381,382		3,751			—			25,327
Undistributed capital gains		—		—			—			—
Post October capital losses		—		—			(235,196	)		—
Accumulated capital and other losses		—		(24,049	)		—			—
Accumulated earnings (deficit)	$	1,008,091	$	(522,715	)	$	4,461,225		$	630,183

Post October capital losses listed above incurred after October 31, 2017 and within the taxable year, are deemed to arise on the first day of the Funds’ next taxable year.

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Diamond Hill Funds
Notes to Financial Statements (Continued)
June 30, 2018 (Unaudited)

As of June 30, 2018, the Funds' federal tax cost of portfolio investments and net unrealized appreciation (depreciation) on portfolio investments were as follows:

	Small Cap Fund			Small-Mid Cap Fund			Mid Cap Fund			Large Cap Fund
Tax cost of portfolio investments	$	1,185,705,308		$	2,206,761,401		$	112,912,855		$	4,780,040,592
Gross unrealized appreciation	$	447,764,564		$	542,851,998		$	18,990,097		$	1,478,522,996
Gross unrealized depreciation		(66,158,783	)		(82,143,774	)		(4,293,763	)		(207,924,952	)
Net unrealized appreciation (depreciation)on portfolio investments	$	381,605,781		$	460,708,224		$	14,696,334		$	1,270,598,044

	All Cap Select Fund			Long-Short Fund			Research Opportunities Fund			Financial Long-Short Fund
Tax cost of portfolio investments	$	196,654,610		$	3,260,253,258		$	64,602,357		$	32,589,058
Gross unrealized appreciation	$	30,961,633		$	991,501,539		$	12,681,264		$	5,548,930
Gross unrealized depreciation		(7,793,652	)		(291,341,646	)		(4,841,566	)		(2,599,548	)
Net unrealized appreciation (depreciation)on portfolio investments	$	23,167,981		$	700,159,893		$	7,839,698		$	2,949,382

	Global Fund			Short Duration Fund			Core Bond Fund			Corporate Credit Fund
Tax cost of portfolio investments	$	15,806,848		$	441,661,685		$	57,368,288		$	834,475,324
Gross unrealized appreciation	$	574,983		$	1,528,879		$	175,831		$	5,055,194
Gross unrealized depreciation		(1,125,958	)		(2,237,480	)		(1,553,275	)		(13,477,664	)
Net unrealized appreciation (depreciation) on portfolio investments	$	(550,975	)	$	(708,601	)	$	(1,377,444	)	$	(8,422,470	)

	High Yield Fund
Tax cost of portfolio investments	$	57,005,338
Gross unrealized appreciation	$	436,771
Gross unrealized depreciation		(774,463	)
Net unrealized appreciation (depreciation) on portfolio investments	$	(337,692	)

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

As of the latest tax year ended December 31, 2017, the following Fund has capital loss carry forwards ("CLCFs") as summarized in the table below.

118 DIAMOND HILL FUNDS | SEMI- ANNUAL REPORT | JUNE 30, 2018 | DIAMOND-HILL.COM

Diamond Hill Funds
Notes to Financial Statements (Continued)
June 30, 2018 (Unaudited)

CLCFs not subject to expiration:

	Core Bond Fund
No expiration - short-term	$	17,670
No expiration - long-term		6,379
	$	24,049

As of the latest tax year ended December 31, 2017, the All Cap Select Fund, Financial Long Short Fund, Core Bond Fund and Corporate Credit Fund utilized $12,428,881, $2,905,819, $7,410 and $387,388, 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.

Reclassification of capital accounts — Reclassifications result primarily from the difference in the tax treatment of gains (losses) on foreign currency transactions. The following reclassifications have no impact on the net assets or net asset value per share of the Funds and are designed to present the Fund’s capital accounts on a tax basis:

	Research Opportunities Fund			Financial Long-Short Fund			Global Fund
Accumulated net investment income (loss)	$	(560	)	$	(1,196	)	$	(1,549	)
Accumulated net realized gains (losses) from investment transactions and foreign currency translation		560			1,196			1,549

Line of Credit

The Small Cap Fund, Small-Mid Cap Fund, Mid Cap Fund, Large Cap Fund, All Cap Select Fund, Long-Short Fund, Research Opportunities Fund, Financial Long-Short Fund, Global Fund, Short Duration Fund, Core Bond Fund, Corporate Credit Fund and High Yield Fund each has an unsecured line of credit up to 20.0%, 20.0%, 20.0%, 33.3%, 25.0%, 15.0%, 15.0%, 10.0%, 20.0%, 20.0%, 20.0%, 15.0% and 15.0%, respectively, of its net assets, with a total maximum of $40,000,000.

Borrowings under the agreement bear interest at the prime rate as announced by the lending bank. The line of credit is available until June 5, 2019, unless extended, when any advances are to be repaid. During the six months ended June 30, 2018, no amounts were drawn from the available lines.

Subsequent Events

The Funds evaluated events from June 30, 2018 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, 2018 | DIAMOND-HILL.COM 119

Diamond Hill Funds
Notes to Financial Statements (Continued)
June 30, 2018 (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 adviser 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 number 1-888-226-5595, or through the Funds' website, or on the Securities and Exchange Commission’s ("Commission") 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.

120 DIAMOND HILL FUNDS | SEMI- ANNUAL REPORT | JUNE 30, 2018 | 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 sales charges and 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, 2018 and held for the entire period from January 1, 2018 through June 30, 2018.

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 net expense ratio (%)
	Actual	Hypothetical	Actual	Hypothetical	Actual	Hypothetical	Actual
Small Cap Fund
Class A	1,000.00	1,000.00	1,004.50	1,018.57	6.24	6.28	1.25%
Class C	1,000.00	1,000.00	1,000.60	1,014.85	9.95	10.02	2.01%
Class I	1,000.00	1,000.00	1,006.10	1,020.03	4.78	4.81	0.96%
Class Y	1,000.00	1,000.00	1,006.40	1,020.59	4.21	4.24	0.85%
Small-Mid Cap Fund
Class A	1,000.00	1,000.00	1,014.80	1,018.79	6.05	6.06	1.21%
Class C	1,000.00	1,000.00	1,011.30	1,015.07	9.78	9.80	1.96%
Class I	1,000.00	1,000.00	1,016.50	1,020.25	4.58	4.59	0.92%
Class Y	1,000.00	1,000.00	1,017.30	1,020.81	4.02	4.03	0.80%

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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 net expense ratio (%)
	Actual	Hypothetical	Actual	Hypothetical	Actual	Hypothetical	Actual
Mid Cap Fund
Class A	1,000.00	1,000.00	1,013.90	1,019.53	5.30	5.32	1.06%
Class I	1,000.00	1,000.00	1,015.30	1,020.99	3.84	3.85	0.77%
Class Y	1,000.00	1,000.00	1,016.80	1,021.55	3.28	3.28	0.65%
Large Cap Fund
Class A	1,000.00	1,000.00	970.10	1,020.00	4.73	4.85	0.97%
Class C	1,000.00	1,000.00	966.50	1,016.28	8.38	8.59	1.72%
Class I	1,000.00	1,000.00	971.40	1,021.45	3.29	3.38	0.67%
Class Y	1,000.00	1,000.00	972.20	1,022.02	2.74	2.80	0.56%
All Cap Select Fund
Class A	1,000.00	1,000.00	1,006.90	1,019.03	5.78	5.82	1.16%
Class C	1,000.00	1,000.00	1,003.30	1,015.31	9.50	9.56	1.91%
Class I	1,000.00	1,000.00	1,008.10	1,020.49	4.33	4.35	0.87%
Class Y	1,000.00	1,000.00	1,008.70	1,021.07	3.74	3.76	0.75%
Long-Short Fund
Class A	1,000.00	1,000.00	981.80	1,016.12	8.59	8.74	1.75%
Class C	1,000.00	1,000.00	978.30	1,012.40	12.26	12.47	2.50%
Class I	1,000.00	1,000.00	983.30	1,017.58	7.15	7.28	1.45%
Class Y	1,000.00	1,000.00	984.10	1,018.15	6.60	6.71	1.34%
Research Opportunities Fund
Class A	1,000.00	1,000.00	1,003.00	1,015.87	8.94	9.00	1.80%
Class C	1,000.00	1,000.00	999.60	1,012.15	12.64	12.72	2.55%
Class I	1,000.00	1,000.00	1,004.20	1,017.34	7.47	7.52	1.50%
Class Y	1,000.00	1,000.00	1,004.60	1,017.90	6.91	6.95	1.39%
Financial Long-Short Fund
Class A	1,000.00	1,000.00	983.80	1,016.62	8.10	8.24	1.65%
Class C	1,000.00	1,000.00	980.50	1,012.91	11.76	11.96	2.40%
Class I	1,000.00	1,000.00	985.40	1,017.12	7.61	7.74	1.55%
Global Fund
Class A	1,000.00	1,000.00	999.40	1,018.89	5.90	5.96	1.19%
Class I	1,000.00	1,000.00	1,000.80	1,020.32	4.48	4.52	0.90%
Class Y	1,000.00	1,000.00	1,001.60	1,020.87	3.92	3.96	0.79%
Short Duration Fund
Class A	1,000.00	1,000.00	1,012.30	1,020.73	4.09	4.10	0.82%
Class I	1,000.00	1,000.00	1,013.80	1,022.21	2.60	2.61	0.52%
Class Y	1,000.00	1,000.00	1,015.30	1,022.76	2.05	2.05	0.41%
Core Bond Fund
Class A	1,000.00	1,000.00	991.40	1,020.99	3.79	3.85	0.77%
Class I	1,000.00	1,000.00	992.70	1,022.44	2.35	2.38	0.48%
Class Y	1,000.00	1,000.00	994.30	1,023.00	1.79	1.81	0.36%

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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 net expense ratio (%)
	Actual	Hypothetical	Actual	Hypothetical	Actual	Hypothetical	Actual
Corporate Credit Fund
Class A	1,000.00	1,000.00	1,012.50	1,020.32	4.51	4.52	0.90%
Class C	1,000.00	1,000.00	1,008.90	1,016.59	8.24	8.27	1.65%
Class I	1,000.00	1,000.00	1,014.90	1,021.77	3.05	3.06	0.61%
Class Y	1,000.00	1,000.00	1,015.50	1,022.33	2.48	2.49	0.50%
High Yield Fund
Class A	1,000.00	1,000.00	1,019.30	1,020.02	4.82	4.82	0.96%
Class I	1,000.00	1,000.00	1,019.50	1,021.45	3.38	3.38	0.67%
Class Y	1,000.00	1,000.00	1,020.00	1,022.02	2.80	2.80	0.56%

* Expenses are equal to the Fund’s annualized net 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 Highlights 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.

DIAMOND HILL FUNDS | SEMI- ANNUAL REPORT | JUNE 30, 2018 | DIAMOND-HILL.COM 123

Diamond Hill Global Fund
Trustee Approval of Investment Advisory Agreement (Unaudited)

The Trustees of Diamond Hill Funds (the “Trust”) considered a broad range of information specifically requested and relating to their consideration of the approval of the investment advisory agreement for the Diamond Hill Global Fund (“Global Fund”) at a regularly scheduled meeting on August 17, 2017. By a unanimous vote, the Trustees approved the Amended and Restated Investment Management Agreement (“Management Agreement”) between the Trust and Diamond Hill Capital Management, Inc. (the “Adviser”), for the Global Fund. The following disclosure summarizes the discussion at the August 17, 2017 meeting. The Trustees discussed the following factors, in connection with the Trust’s Management Agreement:

a) Nature, Extent and Quality of Services. The Trustees considered the nature, extent and quality of the services provided by the Adviser under the Management Agreement, including a review of the services provided thereunder, the proposed management fee for the Global Fund, and the expenses that will be assumed. They also considered the Adviser’s overall reputation, integrity and mission to serve its clients through a disciplined intrinsic-value-based approach to investment that aligns the Adviser’s interests with those of its clients. The Trustees noted the qualifications of the investment staff and other key personnel of the Adviser and that the Adviser continues to invest significant resources in human capital to attract and retain top talent. The Trustees also reviewed the Adviser’s succession plan for key investment and management staff. In addition, the Trustees reviewed information related to the compensation structure for portfolio managers and other key investment personnel.

In evaluating performance, the Trustees reviewed the Adviser’s absolute and relative return goals for the Global Fund and performance information for the Diamond Hill Global Fund, L.P. (“Global LP”), noting that the Global LP will be converted into the Global Fund. The Trustees determined that because the Global Fund has not commenced operations, the Trustees would review performance over time.

b) Reasonableness of Investment Advisory Fees. The Trustees noted that the contractual fee rate under the Management Agreement was below both the average and median rates of the Morningstar World Large Stock Category.

c) Reasonableness of Total Expenses. The Trustees noted that the estimated total expenses of each class of shares of the Global Fund was below both the average and median total expenses of the Morningstar World Large Stock Category.

d) Profitability. The Trustees considered the profitability of the Adviser’s future relationship with the Global Fund. The Adviser discussed the level of assets the Global Fund will need to reach before becoming profitable. As such, the Adviser represented that the Global Fund will likely not generate a profit until a performance track-record has been established and asset growth begins to increase in line with expectations. After discussion, the Trustees determined that they would continue to evaluate the Adviser’s profitability in connection with the next annual renewal of the Management Agreement, and concluded that the time frame to achieve profitability was reasonable. The Trustees noted that the Adviser is also the administrator to the Global Fund (under the Amended and Restated Administrative, Fund Accounting and Transfer Agency Services Agreement (“Administration Agreement”)) and the Trustees reviewed a separate profitability analysis relating to the administrative services provided to

124 DIAMOND HILL FUNDS | SEMI- ANNUAL REPORT | JUNE 30, 2018 | DIAMOND-HILL.COM

Diamond Hill Global Fund
Trustee Approval of Investment Advisory Agreement (Unaudited) (Continued)

all the funds of the Trust. The Trustees concluded that the administration margin under the Administration Agreement represented a fair and entrepreneurial profit for managing and providing administrative services to the Trust.

e) Economies of Scale. The Trustees reviewed the potential extent to which economies of scale would be realized as each of the other funds in the Trust grow and whether fee levels reflect these economies of scale for the benefit of Fund shareholders. They noted that while many advisory firms reduce fees as assets under management increase with predetermined break points, the Adviser has adopted a different strategy. The Trustees considered that rather than instituting break points, the Adviser has targeted its advisory fees to correspond to its mission to add value, meaning that rather than charging a lower fee on assets above a certain level, the Adviser prefers to close a strategy to new investors so that it can efficiently manage the Fund’s assets and attempt to fulfill its responsibility to add value to existing investors. The Trustees noted that three of the other funds in the Trust are currently closed to most new investors. The Trustees also noted that the Adviser has a history of voluntarily reducing its fees under the Administration Agreement when asset growth allows for the sharing of economies of scale, with the most recent reduction taking place on February 28, 2018. The Adviser represented that the strategy for the Global Fund will be the same as the other funds in the Trust.

f) Ancillary Benefits. The Trustees considered ancillary benefits received by the Adviser as a result of its relationship with all the funds in the Trust, including the ability to negotiate favorable commissions rates and have access to research that benefits all of the Adviser’s clients, the ability to serve as sub-adviser to other mutual funds, and the ability to launch an exchange-traded fund.

In their deliberations, there was a comprehensive consideration of each of the factors above in connection with the Global Fund, and the Trustees, all of whom qualify as Independent Trustees under the 1940 Act, concluded the compensation to be received by the Adviser from the Global Fund was fair and reasonable and the approval of the Management Agreement for the Global Fund was in the best interests of the Global Fund and its shareholders.

DIAMOND HILL FUNDS | SEMI- ANNUAL REPORT | JUNE 30, 2018 | DIAMOND-HILL.COM 125

INVESTMENT ADVISER: DIAMOND HILL CAPITAL MANAGEMENT, INC.

DISTRIBUTOR: FORESIDE FINANCIAL SERVICES, LLC (MEMBER FINRA)

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

DH-SAR063018

Item 2. Code of Ethics.

Not applicable for semi-annual reporting period.

Item 3. Audit Committee Financial Expert.

Not applicable for semi-annual reporting period.

Item 4. Principal Accountant Fees and Services.

Not applicable for semi-annual reporting period.

Item 5. Audit Committee of Listed Registrants.

Not applicable for semi-annual reporting period.

Item 6. Schedule of Investments.

(a) The Schedule of Investments is included in the Semi-Annual Report to Shareholders filed under Item 1 of this Form.

(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 materially affected, the registrant’s internal control over financial reporting.

Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.

Not applicable.

Item 13. Exhibits

(a)(1)	Not applicable for semi-annual reporting period.
(a)(2)	Certifications required by Item 12(a) of Form N-CSR are filed herewith.
(a)(3)	Not applicable.
(a)(4)	Change in independent public accountant are filed herewith.
(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 29, 2018

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 29, 2018
By (Signature and Title)	/s/ Julie A. Roach
	Julie A. Roach, Principal Financial Officer
Date:	August 29, 2018