Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Feb. 28, 2024 | Jun. 30, 2023 | |
Cover [Abstract] | |||
Document Transition Report | false | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2023 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Interactive Data Current | Yes | ||
Title of 12(b) Security | Common shares, no par value | ||
City Area Code | 614 | ||
Entity Address, Postal Zip Code | 43215 | ||
Entity Incorporation, State or Country Code | OH | ||
Entity File Number | 000-24498 | ||
Entity Registrant Name | DIAMOND HILL INVESTMENT GROUP, INC. | ||
Entity Address, Address Line One | 325 John H. McConnell Blvd | ||
Entity Address, Address Line Two | Suite 200 | ||
Entity Address, City or Town | Columbus | ||
Entity Address, State or Province | OH | ||
Entity Central Index Key | 0000909108 | ||
Entity Filer Category | Accelerated Filer | ||
Document Type | 10-K | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 2,843,585 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 483,389,072 | ||
Entity Tax Identification Number | 65-0190407 | ||
Local Phone Number | 255-3333 | ||
Trading Symbol | DHIL | ||
Security Exchange Name | NASDAQ | ||
Documents Incorporated by Reference | Portions of the registrant’s definitive Proxy Statement for its 2024 Annual Meeting of Shareholders to be filed pursuant to Regulation 14A under the Securities Exchange Act of 1934, as amended, are incorporated by reference into Part III of this Annual Report on Form 10-K. |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2023 | |
Audit Information [Abstract] | |
Auditor Firm ID | 185 |
Auditor Name | KPMG LLP |
Auditor Location | Columbus, Ohio |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
ASSETS | ||
Cash and cash equivalents | $ 46,991,879 | $ 63,195,302 |
Investments | 147,738,862 | 145,675,711 |
Accounts receivable | 18,051,241 | 17,329,034 |
Prepaid expenses | 3,509,460 | 3,435,269 |
Income taxes receivable | 1,620,864 | 1,463,547 |
Property and equipment, net of depreciation | 2,591,604 | 4,348,341 |
Deferred taxes | 11,590,438 | 14,374,206 |
Total assets | 232,094,348 | 249,821,410 |
Liabilities | ||
Accounts payable and accrued expenses | 6,190,370 | 9,177,977 |
Accrued incentive compensation | 29,500,000 | 32,100,000 |
Deferred compensation | 36,087,170 | 30,744,990 |
Total liabilities | 71,777,540 | 72,022,967 |
Redeemable noncontrolling interest | 0 | 14,126,198 |
Permanent Shareholders’ Equity | ||
Common shares, no par value: 7,000,000 shares authorized; 2,823,076 issued and outstanding at December 31, 2023 (inclusive of 190,172 unvested shares); 3,010,457 issued and outstanding at December 31, 2022 (inclusive of 219,459 unvested shares) | 22,164,410 | 51,688,631 |
Preferred stock, undesignated, 1,000,000 shares authorized and unissued | 0 | 0 |
Deferred equity compensation | (15,392,418) | (17,011,144) |
Retained earnings | 153,544,816 | 128,994,758 |
Total permanent shareholders’ equity | 160,316,808 | 163,672,245 |
Total liabilities and shareholders’ equity | $ 232,094,348 | $ 249,821,410 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - shares | Dec. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Common stock, shares authorized | 7,000,000 | 7,000,000 |
Common stock, shares issued | 2,823,076 | 3,010,457 |
Common stock, shares outstanding | 2,823,076 | 3,010,457 |
Common stock, unvested shares | 190,172 | 211,575 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 0 | 0 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
REVENUES: | |||
Total revenue | $ 136,716,371 | $ 154,496,019 | $ 182,193,837 |
OPERATING EXPENSES: | |||
Compensation and related costs, excluding deferred compensation expense (benefit) | 70,730,640 | 70,505,216 | 73,591,327 |
Deferred compensation expense (benefit) | 5,599,880 | (4,402,265) | 7,082,153 |
General and administrative | 14,935,033 | 13,606,922 | 14,020,836 |
Sales and marketing | 6,684,410 | 7,159,686 | 7,659,423 |
Mutual fund administration | 3,262,421 | 3,294,983 | 3,581,960 |
Total operating expenses | 101,212,384 | 90,164,542 | 105,935,699 |
NET OPERATING INCOME | 35,503,987 | 64,331,477 | 76,258,138 |
Investment income (loss), net | 23,071,441 | (20,186,511) | 16,381,216 |
Gain on sale of High Yield-Focused Advisory Contracts | 0 | 6,813,579 | 9,000,000 |
Total non-operating income (loss) | 23,071,441 | (13,372,932) | 25,381,216 |
NET INCOME BEFORE TAXES | 58,575,428 | 50,958,545 | 101,639,354 |
Income tax expense | (15,489,880) | (14,087,783) | (26,049,815) |
NET INCOME | 43,085,548 | 36,870,762 | 75,589,539 |
Net loss (income) attributable to redeemable noncontrolling interest | (859,126) | 3,563,345 | (1,388,930) |
NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS | $ 42,226,422 | $ 40,434,107 | $ 74,200,609 |
Earnings per share attributable to common shareholders | |||
Basic (in dollars per share) | $ 14.32 | $ 13.01 | $ 23.34 |
Diluted (in dollars per share) | $ 14.32 | $ 13.01 | $ 23.34 |
Weighted average shares outstanding | |||
Basic (in shares) | 2,948,625 | 3,107,604 | 3,179,497 |
Diluted (in shares) | 2,948,625 | 3,107,604 | 3,179,497 |
Investment advisory | |||
REVENUES: | |||
Total revenue | $ 129,179,500 | $ 144,325,517 | $ 170,137,609 |
Mutual fund administration, net | |||
REVENUES: | |||
Total revenue | $ 7,536,871 | $ 10,170,502 | $ 12,056,228 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) | Total | Common Shares | Deferred Equity Compensation | Retained Earnings |
Beginning Balance (in shares) at Dec. 31, 2020 | 3,168,823 | |||
Beginning Balance at Dec. 31, 2020 | $ 184,080,753 | $ 80,810,946 | $ (14,748,118) | $ 118,017,925 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Issuance of restricted stock grants (in shares) | 69,879 | |||
Issuance of restricted stock grants | $ 11,105,508 | (11,105,508) | ||
Amortization of restricted stock grants | 7,182,299 | 7,182,299 | ||
Issuance of stock grants (in shares) | 3,681 | |||
Common shares issued as incentive compensation | 529,806 | $ 529,806 | ||
Issuance of common stock related to 401k plan match (in shares) | 506 | |||
Issuance of common shares related to 401(k) plan match | 87,667 | $ 87,667 | ||
Issuance of common stock related to employee stock purchase plan (shares) | 4,278 | |||
Issuance of common shares related to employee stock purchase plan | 748,472 | $ 748,472 | ||
Shares withheld related to employee tax withholding (shares) | (10,057) | |||
Shares withheld related to employee tax withholding obligations | (1,625,413) | $ (1,625,413) | ||
Forfeiture of restricted stock grants (in shares) | (19,847) | |||
Forfeiture of restricted stock grants | $ (3,402,622) | 3,402,622 | ||
Repurchases of common stock (in shares) | (45,727) | |||
Repurchases of common shares (inclusive of accrued excise tax of $255,969) | (7,820,315) | $ (7,820,315) | ||
Cash dividend paid of $6.00 in 2016, $7.00 in 2017, and $8.00 in 2018 per share respectively | (72,960,976) | (72,960,976) | ||
Net income attributable to parent | 74,200,609 | 74,200,609 | ||
Ending Balance (in shares) at Dec. 31, 2021 | 3,171,536 | |||
Ending Balance at Dec. 31, 2021 | 184,422,902 | $ 80,434,049 | (15,268,705) | 119,257,558 |
Beginning balances attributable to redeemable noncontrolling interests at Dec. 31, 2020 | 9,372,333 | |||
Increase (Decrease) in Temporary Equity [Roll Forward] | ||||
Net (loss) income attributable to redeemable noncontrolling interests | 1,388,930 | |||
Net subscriptions of consolidated funds | 10,298,891 | |||
Net deconsolidations of Company sponsored investments | (3,303,818) | |||
Ending balances attributable to redeemable noncontrolling interests at Dec. 31, 2021 | 17,756,336 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Issuance of restricted stock grants (in shares) | 76,143 | |||
Issuance of restricted stock grants | $ 13,436,439 | (13,436,439) | ||
Amortization of restricted stock grants | 10,530,486 | 10,530,486 | ||
Issuance of stock grants (in shares) | 2,743 | |||
Common shares issued as incentive compensation | 487,870 | $ 487,870 | ||
Issuance of common stock related to 401k plan match (in shares) | 211 | |||
Issuance of common shares related to 401(k) plan match | 37,313 | $ 37,313 | ||
Issuance of common stock related to employee stock purchase plan (shares) | 3,392 | |||
Issuance of common shares related to employee stock purchase plan | 619,159 | $ 619,159 | ||
Shares withheld related to employee tax withholding (shares) | (19,302) | |||
Shares withheld related to employee tax withholding obligations | (3,436,678) | $ (3,436,678) | ||
Forfeiture of restricted stock grants (in shares) | (7,257) | |||
Forfeiture of restricted stock grants | 0 | $ (1,163,514) | 1,163,514 | |
Repurchases of common stock (in shares) | (217,009) | |||
Repurchases of common shares (inclusive of accrued excise tax of $255,969) | (38,726,007) | $ (38,726,007) | ||
Cash dividend paid of $6.00 in 2016, $7.00 in 2017, and $8.00 in 2018 per share respectively | (30,696,907) | (30,696,907) | ||
Net income attributable to parent | $ 40,434,107 | 40,434,107 | ||
Ending Balance (in shares) at Dec. 31, 2022 | 3,010,457 | 3,010,457 | ||
Ending Balance at Dec. 31, 2022 | $ 163,672,245 | $ 51,688,631 | (17,011,144) | 128,994,758 |
Increase (Decrease) in Temporary Equity [Roll Forward] | ||||
Net (loss) income attributable to redeemable noncontrolling interests | (3,563,345) | |||
Net subscriptions of consolidated funds | 9,461,710 | |||
Net deconsolidations of Company sponsored investments | (9,528,503) | |||
Ending balances attributable to redeemable noncontrolling interests at Dec. 31, 2022 | 14,126,198 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Issuance of restricted stock grants (in shares) | 59,578 | |||
Issuance of restricted stock grants | $ 11,131,853 | (11,131,853) | ||
Amortization of restricted stock grants | 11,603,239 | 11,603,239 | ||
Common shares issued as incentive compensation | 0 | |||
Issuance of common stock related to 401k plan match (in shares) | 99 | |||
Issuance of common shares related to 401(k) plan match | 16,344 | $ 16,344 | ||
Issuance of common stock related to employee stock purchase plan (shares) | 2,904 | |||
Issuance of common shares related to employee stock purchase plan | 482,097 | $ 482,097 | ||
Shares withheld related to employee tax withholding (shares) | (30,204) | |||
Shares withheld related to employee tax withholding obligations | (5,131,262) | $ (5,131,262) | ||
Forfeiture of restricted stock grants (in shares) | (7,120) | |||
Forfeiture of restricted stock grants | $ (1,147,340) | 1,147,340 | ||
Repurchases of common stock (in shares) | (212,638) | |||
Repurchases of common shares (inclusive of accrued excise tax of $255,969) | (34,875,913) | $ (34,875,913) | ||
Cash dividend paid of $6.00 in 2016, $7.00 in 2017, and $8.00 in 2018 per share respectively | (17,676,364) | (17,676,364) | ||
Net income attributable to parent | $ 42,226,422 | 42,226,422 | ||
Ending Balance (in shares) at Dec. 31, 2023 | 2,823,076 | 2,823,076 | ||
Ending Balance at Dec. 31, 2023 | $ 160,316,808 | $ 22,164,410 | $ (15,392,418) | $ 153,544,816 |
Increase (Decrease) in Temporary Equity [Roll Forward] | ||||
Net (loss) income attributable to redeemable noncontrolling interests | 859,126 | |||
Net subscriptions of consolidated funds | 10,350,857 | |||
Net deconsolidations of Company sponsored investments | (25,336,181) | |||
Ending balances attributable to redeemable noncontrolling interests at Dec. 31, 2023 | $ 0 |
Consolidated Statements of Sh_2
Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividend paid per share (in dollars per share) | $ 6 | $ 10 | $ 23 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income | $ 43,085,548 | $ 36,870,762 | $ 75,589,539 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation | 1,289,315 | 1,377,610 | 1,281,420 |
Share-based compensation | 11,691,890 | 10,660,673 | 7,415,170 |
Increase (decrease) in accounts receivable | (3,393,686) | 3,107,409 | (2,666,551) |
Change in current income taxes | (157,317) | (2,265,287) | 1,058,278 |
Change in deferred income taxes | 2,783,768 | (4,526,654) | (1,410,106) |
Gain on sale of High Yield-Focused Advisory Contracts | 0 | (6,813,579) | (9,000,000) |
Net loss (gain) on investments | (16,536,677) | 24,471,894 | (10,878,658) |
Net change in securities held by Consolidated Funds | (10,930,911) | (14,039,687) | (50,430,607) |
Increase (decrease) in accrued incentive compensation | (2,600,000) | (4,647,548) | 9,365,224 |
Increase (decrease) in deferred compensation | 5,342,180 | (6,603,304) | 4,106,342 |
Other changes in assets and liabilities | 4,095,014 | 1,890,346 | 1,882,186 |
Net cash provided by operating activities | 34,669,124 | 39,482,635 | 26,312,237 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Purchase of property and equipment | (21,705) | (101,454) | (1,104,981) |
Purchase of Company sponsored investments | (19,469,955) | (7,606,958) | (21,395,411) |
Proceeds from sale of Company sponsored investments | 15,286,036 | 6,928,704 | 40,764,891 |
Proceeds From Sale Of Nonfinancial Assets | 0 | 6,813,579 | 9,000,000 |
Net cash provided by (used in) investing activities | (4,205,624) | 6,033,871 | 27,264,499 |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Value of shares withheld related to employee tax withholding obligations | (5,131,262) | (3,436,678) | (1,625,413) |
Payment of dividends | (17,676,364) | (30,696,907) | (72,960,976) |
Repurchase of common shares | 10,350,857 | 9,461,710 | 10,298,891 |
Repurchase of common shares | (34,619,944) | (38,726,007) | (7,820,315) |
Proceeds received under employee stock purchase plan | 409,790 | 526,285 | 603,268 |
Net cash used in financing activities | (46,666,923) | (62,871,597) | (71,504,545) |
CASH AND CASH EQUIVALENTS | |||
Net change during the year | (16,203,423) | (17,355,091) | (17,927,809) |
At beginning of year | 63,195,302 | 80,550,393 | 98,478,202 |
At end of year | 46,991,879 | 63,195,302 | 80,550,393 |
Supplemental cash flow information: | |||
Income taxes paid | 12,863,429 | 20,879,724 | 26,401,643 |
Supplemental disclosure of non-cash transactions: | |||
Common stock issued as incentive compensation | 0 | 487,870 | 529,806 |
Charitable donation of corporate investments | $ 0 | $ 0 | $ 366,555 |
Business and Organization (Note
Business and Organization (Notes) | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business and Organization | Business and Organization |
Significant Accounting Policies
Significant Accounting Policies (Notes) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies Basis of Presentation The accompanying consolidated financial statements of the Company have been prepared pursuant to the rules and regulations of the SEC and in accordance with the instructions to Form 10-K. The Company believes that the disclosures contained herein are adequate to make the information presented not misleading. These consolidated financial statements reflect, in the opinion of the Company, all material adjustments (which include only normal recurring adjustments) necessary to fairly present the Company’s financial position as of December 31, 2023 and 2022, and results of operations for the years ended December 31, 2023, 2022 and 2021. Use of Estimates The preparation of the consolidated financial statements requires management to make estimates and judgments that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements as well as the reported amounts of revenue and expense during the reporting period. Estimates have been prepared based on the most current and best available information, but actual results could differ materially from those estimates. Principles of Consolidation The accompanying consolidated financial statements include the operations of DHIL and its consolidated subsidiaries. All inter-company transactions and balances have been eliminated in consolidation. DHCM holds certain investments in the Funds and DHMF for general corporate investment purposes, to provide seed capital for newly formed strategies, or to add capital to existing strategies. The Funds are organized in a series fund structure in which there are multiple mutual funds within one trust (the “Trust”). The Trust is an open-end investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). Each individual Fund represents a separate share class of a legal entity organized under the Trust. DHMF is organized as a Delaware limited partnership and is exempt from registration under the 1940 Act. DHIL consolidates those subsidiaries and investments over which it has a controlling interest. The Company is generally deemed to have a controlling interest when it owns the majority of the voting interest of a voting rights entity (“VRE”) or is deemed to be the primary beneficiary of a variable interest entity (“VIE”). A VIE is an entity that lacks sufficient equity to finance its activities, or any entity whose equity holders do not have defined power to direct the activities of the entity normally associated with an equity investment. The Company’s analysis to determine whether an entity is a VIE or a VRE involves judgment and consideration of several factors, including an entity’s legal organization, equity structure, the rights of the investment holders, the Company’s ownership interest in the entity, and the Company’s contractual involvement with the entity. The Company continually reviews and reconsiders its controlling interest, VIE or VRE conclusions upon the occurrence of certain events, such as changes to its ownership interest, or amendments to contract documents. The Company performs its consolidation analysis at the individual Fund level and has concluded that the Funds are VREs because the structure of the Funds is such that the shareholders are deemed to have the power through voting rights to direct the activities that most significantly impact each Fund’s economic performance. The Funds are consolidated if DHIL ownership, directly or indirectly, represents a majority interest (greater than 50%). The Company records redeemable noncontrolling interests in consolidated investments for which the Company’s ownership is less than 100%. As of December 31, 2023, the Company has not consolidated any of the Funds. As of December 31, 2022, the Company consolidated the Diamond Hill International Fund. As of December 31, 2021, the Company consolidated the Diamond Hill International Fund and the Diamond Hill Large Cap Concentrated Fund. The Company deconsolidated the Diamond Hill International Fund during the year ended December 31, 2023 and deconsolidated the Diamond Hill Large Cap Concentrated Fund during the year ended December 31, 2022, as the Company’s ownership declined to less than 50% during each of these years. The Company also deconsolidated the Diamond Hill Global Fund during the year ended December 31, 2021, as the Fund was liquidated on December 17, 2021. The Fund(s) consolidated during the applicable period are referred to as the “Consolidated Fund(s).” DHCM is the investment advisor of DHMF and is the managing member of Diamond Hill Fund GP, LLC (the “General Partner”), which is the general partner of DHMF. DHCM is wholly-owned by, and consolidated with, DHIL. Further, through its control of the General Partner, DHCM has the power to direct DHMF’s economic activities and the right to receive investment advisory fees from DHMF that may be significant. DHMF commenced operations on June 1, 2021, and its underlying assets consist primarily of marketable securities. The Company concluded DHMF was a VIE given that: (i) DHCM has disproportionately less voting interest than economic interest, and (ii) DHMF’s limited partners have full power to remove the General Partner (which is controlled by DHCM, which is controlled by DHIL) due to the existence of substantive kick-out rights. In addition, substantially all of DHMF’s activities are conducted on behalf of the General Partner, which has disproportionately few voting rights. The Company concluded it is not the primary beneficiary of DHMF as it lacks the power to control DHMF, since DHMF’s limited partners have single-party kick-out rights and can unilaterally remove the General Partner without cause. DHCM’s investments in DHMF are reported as a component of the Company’s investment portfolio and valued at DHCM’s respective share of DHMF's net income or loss. Gains and losses attributable to changes in the value of DHCM’s interests in DHMF are included in the Company’s reported investment income. The Company’s exposure to loss as a result of its involvement with DHMF is limited to the amount of its investment. DHCM is not obligated to provide, and has not provided, financial or other support to DHMF, except for its investments to date and its contractually provided investment advisory responsibilities. The Company has not provided liquidity arrangements, guarantees, or other commitments to support DHMF’s operations, and DHMF’s creditors and interest holders have no recourse to the general credit of the Company. Redeemable Noncontrolling Interest Redeemable noncontrolling interest represents third-party interests in the Consolidated Funds. This interest is redeemable at the option of the investors, and therefore, is not treated as permanent equity. Redeemable noncontrolling interest is recorded at redemption value, which approximates the fair value each reporting period. Segment Information Management has determined that the Company operates in a single business segment, which is providing investment advisory and related services to clients through pooled vehicles, including the Funds and DHMF, separately managed accounts, CITs, other pooled vehicles including sub-advised funds, and model delivery programs. Therefore, the Company does not present disclosures relating to operating segments in annual or interim financial statements. Cash and Cash Equivalents Cash and cash equivalents include demand deposits and money market mutual funds held by DHCM. The Company considers all highly liquid temporary cash instruments with an original maturity of three months or less to be cash equivalents. The Company places its cash on deposit with U.S. financial institutions that are insured by the Federal Deposit Insurance Corporation (“FDIC”) up to $250,000. The Company’s credit risk in the event of failure of these financial institutions is represented by the difference between the FDIC limit and the total amount on deposit. Management monitors the financial institutions’ creditworthiness in conjunction with balances on deposit to minimize risk. The Company from time to time may have amounts on deposit in excess of the insured limits. As of December 31, 2023, the Company had $2.8 million and $44.2 million in demand deposits and money market mutual funds, respectively. As of December 31, 2022, the Company had $2.8 million and $60.4 million in demand deposits and money market mutual funds, respectively. Accounts Receivable The Company records accounts receivable when they are due and presents them on the balance sheet net of any allowance for doubtful accounts. Accounts receivable are written off when they are determined to be uncollectible. Any allowance for doubtful accounts is estimated based on the Company’s historical losses, existing conditions in the industry, and the financial stability of the individual or entity that owes the receivable. No allowance for doubtful accounts was deemed necessary at either December 31, 2023 or 2022. Accounts receivable from the Funds were $9.1 million and $9.3 million as of December 31, 2023 and 2022, respectively. Investments Management determines the appropriate classification of the Company’s investments at the time of purchase and re-evaluates its determination for each reporting period. Company sponsored investments, where the Company has neither the control nor the ability to exercise significant influence, as well as securities held in the Consolidated Funds, are measured at fair value based on quoted market prices. Unrealized gains and losses are recorded as investment income (loss) in the Company's consolidated statements of income. Investments classified as equity method investments represent investments in which the Company owns 20% to 50% of the outstanding voting interests in the entity or where it is determined that the Company is able to exercise significant influence but not control over the investments. When using the equity method, the Company recognizes its respective share of the investee’s net income or loss for the period, which is recorded as investment income (loss) in the Company’s consolidated statements of income. Property and Equipment Property and equipment, consisting of leasehold improvements, right-of-use lease assets, computer equipment, capitalized software, furniture, and fixtures are carried at cost less accumulated depreciation. Accumulated depreciation was $10.2 million and $8.9 million as of December 31, 2023 and 2022, respectively. Depreciation is calculated using the straight-line method over the estimated lives of the assets. Implementation costs incurred to develop or obtain internal-use software, including hosting arrangements, are capitalized and expensed on a straight-line basis over either the estimated useful life of the respective software or the term of the hosting arrangement. Property and equipment is tested for impairment when there is an indication that the carrying amount of an asset may not be recoverable. When an asset is determined to not be recoverable, the impairment loss is measured based on the excess, if any, of the carrying value of the asset over its fair value. Revenue Recognition – General The Company recognizes revenue when DHCM satisfies performance obligations under the terms of a contract with a client. The Company earns substantially all of its revenue from DHCM investment advisory and fund administration contracts. Investment advisory and fund administration fees, generally calculated as a percentage of AUM, are recorded as revenue as services are performed. In addition to fixed fees based on a percentage of AUM, certain client accounts also provide periodic performance-based fees. Revenue from contracts with clients that was earned during the years ended December 31, 2023, 2022 and 2021 include: Year Ended December 31, 2023 Investment advisory Mutual fund Total revenue Diamond Hill Funds $ 84,810,452 $ 7,536,871 $ 92,347,323 Separately managed accounts, excluding performance-based fees 24,898,695 — 24,898,695 Performance-based fees 1,176,351 — 1,176,351 Other pooled vehicles 9,261,533 — 9,261,533 Model delivery 5,211,113 — 5,211,113 Collective investment trusts 3,821,356 — 3,821,356 $ 129,179,500 $ 7,536,871 $ 136,716,371 Year Ended December 31, 2022 Investment advisory Mutual fund Total revenue Diamond Hill Funds $ 98,873,571 $ 10,170,502 $ 109,044,073 Separately managed accounts, excluding performance-based fees 26,200,724 — 26,200,724 Performance-based fees 1,500,225 — 1,500,225 Other pooled vehicles 9,410,541 — 9,410,541 Model delivery 5,910,061 — 5,910,061 Collective investment trusts 2,430,395 — 2,430,395 $ 144,325,517 $ 10,170,502 $ 154,496,019 Year Ended December 31, 2021 Investment advisory Mutual fund Total revenue Diamond Hill Funds $ 113,602,317 $ 12,056,228 $ 125,658,545 Separately managed accounts, excluding performance-based fees 27,882,488 — 27,882,488 Performance-based fees 11,860,051 — 11,860,051 Other pooled vehicles 10,166,928 — 10,166,928 Model delivery 4,977,234 — 4,977,234 Collective investment trusts 1,648,591 — 1,648,591 $ 170,137,609 $ 12,056,228 $ 182,193,837 Revenue Recognition – Investment Advisory Fees DHCM’s investment advisory contracts with clients have a single performance obligation because the contracted services are not separately identifiable from other obligations in the contracts, and therefore, are not distinct. All obligations to provide investment advisory services are satisfied over time by DHCM. The fees DHCM receives for its services under its investment advisory contracts are based on AUM, which changes based on the value of securities held under each investment advisory contract. These fees are thereby constrained and represent variable consideration, and they are excluded from revenue until the AUM on which DHCM’s client is billed is no longer subject to market fluctuations. DHCM also provides its strategy model portfolios and related services to sponsors of model delivery programs. For its services, DHCM is paid a model delivery fee by the program sponsor at a pre-determined rate based on the amount of AUA in the program. Revenue Recognition – Performance-Based Fees DHCM manages certain client accounts that pay performance-based fees. These fees are calculated based on client investment results over rolling five-year periods. The Company records performance-based fees when it is probable that a significant reversal of the revenue will not occur. During the years ended December 31, 2023, 2022, and 2021, the Company recorded $1.2 million, $1.5 million, and $11.9 million, respectively, in performance-based fees. The Company recorded $11.9 million of performance-based fees during the year ended December 31, 2021, as a significant performance-based agreement reached the end of its first five-year measurement period on September 30, 2021. After the initial five-year contract measurement term, the performance-based fee is calculated annually based on the client investment results over the recently completed five-year period. The Company’s next performance measurement period will be the twelve months ending September 30, 2024. AUM subject to performance-based fees was approximately $518.9 million as of December 31, 2023. Revenue Recognition – Mutual Fund Administration DHCM has an administrative and transfer agency services agreement with the Funds under which DHCM performs certain services for each Fund. These services include performance obligations such as mutual fund administration, fund accounting, transfer agency, and other related functions. These services are performed concurrently under DHCM’s agreement with the Funds, all performance obligations to provide these administrative services are satisfied over time, and the Company recognizes the related revenue as time progresses. Each Fund pays DHCM a fee for performing these services, which is calculated using an annual rate multiplied by the average daily net assets of each respective Fund share class. These fees are thereby constrained and represent variable consideration, and they are excluded from revenue until the AUM on which DHCM bills the Funds is no longer subject to market fluctuations. The Funds have selected and contractually engaged certain vendors to fulfill various services to benefit the Funds’ shareholders or to satisfy regulatory requirements of the Funds. These services include, among others, required shareholder mailings, federal and state registrations, and legal and audit services. In fulfilling a portion of its role under the administration and transfer agency services agreement with the Funds, DHCM acts as agent and pays for these services on behalf of the Funds. Each vendor is independently responsible for fulfillment of the services it has been engaged to provide and negotiates its fees and terms directly with the Funds’ management and board of trustees. Each year, the Funds’ board of trustees reviews the fee that each Fund pays to DHCM, and specifically considers the contractual expenses that DHCM pays on behalf of the Funds. As a result, DHCM is not involved in the delivery or pricing of these services, and bears no risk related to these services. Revenue has been recorded net of these Fund-related expenses. Mutual fund administration gross and net revenue are summarized below: Year Ended December 31, 2023 2022 2021 Mutual fund administration: Administration revenue, gross $ 21,597,721 $ 25,188,386 $ 29,635,451 Fund related expense (14,060,850) (15,017,884) (17,579,223) Mutual fund administration revenue, net $ 7,536,871 $ 10,170,502 $ 12,056,228 Income Taxes The Company accounts for current and deferred income taxes through an asset and liability approach. Deferred tax assets are recognized for deductible temporary differences, and deferred tax liabilities are recognized for taxable temporary differences. Deferred tax assets are reduced by a valuation allowance when it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. The Company is subject to examination by federal and applicable state and local jurisdictions for various tax periods. The Company’s income tax positions are based on research and interpretations of the income tax laws and rulings in each of the jurisdictions in which it does business. Due to the subjectivity of interpretations of laws and rulings in each jurisdiction, the differences and interplay in tax laws among those jurisdictions, and the inherent uncertainty in estimating the final resolution of complex tax audit matters, the Company’s estimates of income tax liabilities may differ materially from actual payments or assessments. The Company regularly assesses its positions with regard to tax exposures and records liabilities for these uncertain tax positions and related interest and penalties, if any, according to the principles of Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 740, Income Taxes. The Company records interest and penalties within income tax expense on the income statement. See Note 9. Earnings Per Share Basic and diluted earnings per share (“EPS”) are computed by dividing net income attributable to common shareholders by the weighted average number of DHIL common shares outstanding for the period, which includes unvested restricted shares. See Note 10 . Recently Adopted Accounting Guidance The Company did not adopt any new accounting guidance during the year ended December 31, 2023 that had a material effect on its financial position or results of operations. Newly Issued But Not Yet Adopted Accounting Guidance |
Investments (Notes)
Investments (Notes) | 12 Months Ended |
Dec. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Investments The following table summarizes the carrying value of the Company’s investments as of December 31, 2023 and 2022: As of December 31, 2023 2022 Fair value investments: Securities held in Consolidated Funds (a) — $ 54,740,993 Company-sponsored investments $ 63,208,573 66,828,910 Company-sponsored equity method investments 84,530,289 24,105,808 Total Investments $ 147,738,862 $ 145,675,711 (a) Of the securities held in the Consolidated Funds as of December 31, 2022, DHCM directly held $37.5 million and non-controlling shareholders held $17.2 million. As of December 31, 2023, the Company did not consolidate any of the Funds. As of December 31, 2022, the Company consolidated the Diamond Hill International Fund. The Company deconsolidated the Diamond Hill International Fund during the year ended December 31, 2023, as the Company’s ownership declined to less than 50%. The components of net investment income (loss) are as follows: For the Year Ended December 31, 2023 2022 2021 Realized gains (losses) $ 39,096 $ (118,408) $ 15,676,405 Change in unrealized 15,690,012 (24,082,672) (2,352,649) Dividends 7,517,393 4,193,792 3,221,448 Other loss (175,060) (179,223) (163,988) Investment income (loss), net $ 23,071,441 $ (20,186,511) $ 16,381,216 Company-Sponsored Equity Method Investments As of December 31, 2023, the Company’s equity method investments consisted of DHMF, the Diamond Hill International Fund, and the Diamond Hill Large Cap Concentrated Fund. The Company’s ownership percentage in each of these investments was 85%, 49%, and 47%, respectively. The Company’s ownership in DHMF, the Diamond Hill International Fund, and the Diamond Hill Large Cap Concentrated Fund includes $6.9 million of investments held in the Deferred Compensation Plans (as defined in Note 7). As of December 31, 2022, the Company’s equity method investments consisted of DHMF and the Diamond Hill Large Cap Concentrated Fund, and the Company’s ownership percentage in each of these investments was 85% and 48%, respectively. The Company’s ownership in DHMF and the Diamond Hill Large Cap Concentrated Fund includes $3.8 million of investments from the Deferred Compensation Plans. As of December 31, 2021, the Company’s only equity method investment was DHMF, which commenced operations on June 1, 2021. The Company’s ownership percentage in DHMF as of December 31, 2022 was 87%. The following table includes the condensed summary financial information from the Company’s equity method investments as of December 31, 2023 and 2022, and for the years ended December 31, 2023, 2022, and 2021: As of December 31, 2023 2022 Total assets $ 162,145,182 $ 38,828,388 Total liabilities 4,551,099 278,675 Net assets 157,594,083 38,549,713 DHCM’s portion of net assets $ 84,530,289 $ 24,105,808 For the Year Ended December 31, 2023 2022 2021 Investment income $ 1,349,183 $ 413,528 $ 106,440 Expenses 460,670 134,478 37,820 Net realized gains 311,950 378,476 — Change in unrealized 15,879,847 (402,230) 977,920 Net income 17,080,310 255,296 1,046,540 DHCM’s portion of net income (loss) $ 9,728,056 $ (405,393) $ 914,855 |
Fair Value Measurements (Notes)
Fair Value Measurements (Notes) | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The Company determines the fair value of its cash equivalents and certain investments using the following broad levels listed below: Level 1 - Unadjusted quoted prices for identical instruments in active markets. Level 2 - Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-driven valuations in which all significant inputs are observable. Level 3 - Valuations derived from techniques in which significant inputs are unobservable. The Company does not value any investments using Level 3 inputs. These levels are not necessarily an indication of the risk or liquidity associated with investments. The following table summarizes investments that are recognized in the Company’s consolidated balance sheet using fair value measurements (excludes investments classified as equity method investments) determined based upon the differing levels as of December 31, 2023 and 2022: December 31, 2023 Level 1 Level 2 Level 3 Total Cash equivalents $ 44,171,397 — — $ 44,171,397 Fair value investments Company-sponsored investments 63,208,573 — — 63,208,573 December 31, 2022 Cash equivalents 60,412,001 — — 60,412,001 Fair value investments Securities held in Consolidated Funds (a) 21,542,950 $ 33,198,043 — 54,740,993 Company-sponsored investments $ 66,828,910 — — $ 66,828,910 (a) Of the securities held in the Consolidated Funds as of December 31, 2022, the Company directly held $37.5 million and non-controlling shareholders held $17.2 million. Changes to fair values of the investments are recorded in the Company’s consolidated statements of income as investment income (loss), net. |
Line Of Credit (Notes)
Line Of Credit (Notes) | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Line of Credit | Line of Credit The Company has a committed Line of Credit Agreement (the “Credit Agreement”) with a commercial bank that matures on December 12, 2024, which permits the Company to borrow up to $25.0 million. Borrowings under the Credit Agreement bear interest at a rate equal to the Secured Overnight Financing Rate plus 1.10%. The Company pays a commitment fee on the unused portion of the facility, accruing at a rate per annum of 0.10%. |
Capital Stock (Notes)
Capital Stock (Notes) | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Capital Stock | Capital Stock Common Shares DHIL has only one class of securities outstanding, common shares, no par value per share. Authorization of Preferred Shares DHIL’s Amended and Restated Articles of Incorporation authorize the issuance of 1,000,000 “blank check” preferred shares with such designations, rights, and preferences as may be determined from time to time by the Board. The Board is authorized, without shareholder approval, to issue preferred shares with dividend, liquidation, conversion, voting, or other rights, which could adversely affect the voting or other rights of the holders of the common shares. There were no preferred shares issued or outstanding as of either December 31, 2023, or 2022. |
Compensation Plans (Notes)
Compensation Plans (Notes) | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Compensation Plans | Compensation Plans Share-Based Payment Transactions The Company maintains the shareholder-approved Diamond Hill Investment Group, Inc. 2022 Equity and Cash Incentive Plan (the “2022 Plan”), which authorizes the issuance of 300,000 common shares of DHIL in various forms of equity awards. As of December 31, 2023, there were 234,952 common shares available for grants under the 2022 Plan. Previously, the Company issued equity awards under the Diamond Hill Investment Group, Inc. 2014 Equity and Cash Incentive Plan (the “2014 Plan”). There are no longer any DHIL common shares available for issuance under the 2014 Plan, although certain grants previously made under the 2014 Plan remain issued and outstanding. Restricted stock grants represent common shares issued and outstanding upon grant subject to vesting restrictions. The Company issues restricted stock grants that cliff vest after five years to all new Company employees upon hire and additional awards annually to key Company employees in the form of three-year graded vesting stock grants. Restricted stock grants represent DHIL common shares issued and outstanding upon grant that remain subject to restrictions until specified vesting conditions are satisfied. The Company issues to all new Company employees upon hire restricted stock grants that cliff vest after five years. After the end of each year, the Company also issues to certain key employees restricted stock grants that vest ratably on an annual basis over three years. Compensation and related costs, excluding deferred compensation expense (benefit) includes expenses related to restricted stock grants of $11.6 million, $10.5 million, and $7.2 million, for the years ended December 31, 2023, 2022, and 2021, respectively. The following table represents a roll-forward of outstanding restricted stock and related activity for the year ended December 31, 2023: Shares Weighted-Average Outstanding Restricted Stock as of December 31, 2022 219,459 $ 165.62 Grants issued 59,578 186.85 Grants vested (81,745) 183.64 Grants forfeited (7,120) 161.14 Outstanding Restricted Stock as of December 31, 2023 190,172 $ 164.69 The weighted-average grant date price per share of restricted stock issued during the years ended December 31, 2022 and 2021 was $176.46 and $158.92, respectively. The total fair value of restricted stock vested, as of their respective vesting dates, during the years ended December 31, 2023, 2022, and 2021 was $13.8 million, $9.1 million, and $5.2 million, respectively. Total deferred equity compensation related to unvested restricted stock grants was $15.4 million as of December 31, 2023. The recognition of compensation expense related to deferred compensation over the remaining vesting periods is as follows: 2024 2025 2026 2027 2028 Thereafter Total $ 8,956,756 $ 4,603,980 $ 1,299,220 $ 366,417 $ 165,854 $ 191 $ 15,392,418 Employee Stock Purchase Plan Under the ESPP, eligible employees may purchase DHIL common shares at 85% of the fair market value on the last day of each offering period. Each offering period is approximately three months, which coincides with the Company’s fiscal quarters. During the year ended December 31, 2023, ESPP participants purchased 2,904 DHIL common shares for $0.4 million and the Company recorded $0.1 million of share-based payment expense related to these purchases. During the year ended December 31, 2022, ESPP participants purchased 3,392 DHIL common shares for $0.5 million and the Company recorded $0.1 million of share-based payment expense related to these purchases. As of December 31, 2023, 89,426 DHIL common shares were reserved for future issuance through the ESPP. Share Grant Transactions The following table represents DHIL common shares issued as part of the Company’s incentive compensation program during the years ended December 31, 2023, 2022, and 2021: Shares Issued Grant Date Value December 31, 2023 — — December 31, 2022 2,743 $ 487,870 December 31, 2021 3,681 $ 529,806 401(k) Plan The Company sponsors a 401(k) plan in which all Company employees are eligible to participate. Company employees may contribute a portion of their compensation subject to certain limits based on federal tax laws. The Company matches employee contributions equal to 250.0% of the first 6.0% of an employee’s compensation contributed to the plan. The Company may settle the 401(k) plan matching contributions in cash or common shares of the Company. After June 1, 2023, the Company made all matching contributions in cash. Employees vest ratably in the matching contributions over a five year period. The following table summarizes the Company’s expenses attributable to the 401(k) plan during the years ended December 31, 2023, 2022 and 2021: Shares Issued Share Contributions Cash Contributions Total Company Contributions December 31, 2023 99 $ 16,344 $ 3,067,630 $ 3,083,974 December 31, 2022 211 37,313 2,910,156 2,947,469 December 31, 2021 506 $ 87,667 $ 2,779,641 $ 2,867,308 Deferred Compensation Plans Under the Deferred Compensation Plans, participants may elect to voluntarily defer, for a minimum of five years (subject to an earlier distribution in the case of the participant’s death or disability or a change in control of DHIL), certain incentive compensation that the Company may contribute into the Deferred Compensation Plans. Participants are responsible for designating investment options for the assets they contribute, and the distribution paid to each participant reflects any gains or losses on the assets realized in connection with the Deferred Compensation Plans. Assets held in the Deferred Compensation Plans are included in the Company’s investment portfolio, and the associated obligation to participants is included in deferred compensation liability. Deferred compensation liability was $36.1 million and $30.7 million as of December 31, 2023 and 2022, respectively. |
Operating Leases
Operating Leases | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Operating Leases | Operating Leases The Company currently leases office space of approximately 37,829 square feet at one location. As of December 31, 2023 and December 31, 2022, the carrying value of this right-of-use asset, which is included in property and equipment accounts payable and accrued expenses The following table summarizes the total lease and the related operating expenses for the years ended December 31, 2023, 2022 and 2021: For the year ended December 31, 2023 2022 2021 $ 908,516 $ 918,496 $ 932,637 Lease expense and the related operating expenses are recorded in general and administrative expenses on the consolidated statements of income. The approximate future minimum lease payments under the operating lease are as follows: Future Minimum Lease Payments by Year 2024 2025 Thereafter Total $ 624,179 $ 156,044 $ — $ 780,223 |
Income Taxes (Notes)
Income Taxes (Notes) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The provision for income taxes consists of: For the year ended December 31, 2023 2022 2021 Current federal income tax provision $ 9,974,451 $ 14,494,857 $ 20,987,801 Current state and local income tax provision 2,731,661 4,119,580 6,472,120 Deferred income tax expense (benefit) 2,783,768 (4,526,654) (1,410,106) Provision for income taxes $ 15,489,880 $ 14,087,783 $ 26,049,815 The following table reconciles the statutory federal income tax rate to the Company’s effective income tax rate: 2023 2022 2021 Statutory U.S. federal income tax rate 21.0 % 21.0 % 21.0 % State and local income taxes, net of federal benefit 4.7 4.7 4.8 Internal revenue code section 162 limitations 1.3 1.5 0.9 Excess tax deficit on vesting of restricted stock 0.3 0.1 0.1 Income tax benefit from dividends paid on restricted stock (0.5) (0.9) (1.0) Other — (0.6) 0.2 Unconsolidated effective income tax rate 26.8 % 25.8 % 26.0 % Impact attributable to redeemable noncontrolling interest (a) (0.4) 1.8 (0.4) Effective income tax rate 26.4 % 27.6 % 25.6 % (a) The provision for income taxes includes expense (benefit) attributable to the fact that the Company’s operations include the Consolidated Funds, which are not subject to federal income taxes. Accordingly, a portion of the Company’s earnings are not subject to corporate tax levels. Deferred income taxes and benefits arise from temporary differences between taxable income for financial statement and income tax return purposes. Net deferred tax assets consisted of the following as of December 31, 2023 and 2022: 2023 2022 Stock-based compensation $ 2,778,585 $ 3,416,038 Accrued compensation 10,715,239 9,297,425 Unrealized (gains) losses (1,487,350) 2,362,688 Property and equipment (422,062) (712,794) Other assets and liabilities 6,026 10,849 Net deferred tax assets $ 11,590,438 $ 14,374,206 The net temporary differences incurred to date will reverse in future periods as the Company generates taxable earnings. The Company believes it is more likely than not that the results of future operations will generate sufficient taxable income to realize the net deferred tax assets recorded. The Company records a valuation allowance when it is more likely than not that some portion or all of the deferred tax assets will not be realized. As of December 31, 2023, no valuation allowance was deemed necessary. FASB ASC 740, Income Taxes, prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return and also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. The Company recognizes tax benefits related to positions taken, or expected to be taken, on its tax returns, only if the positions are “more-likely-than-not” sustainable. Once this threshold has been met, the Company’s measurement of its expected tax benefits is recognized in its financial statements. The Company did not record an accrual for tax-related uncertainties or unrecognized tax positions as of December 31, 2023 and 2022, respectively. The Company does not expect a change to the reserve for uncertain tax positions within the next twelve months that would have a material impact on the consolidated financial statements. |
Earnings Per Share (Notes)
Earnings Per Share (Notes) | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The Company’s common shares outstanding consist of all shares issued and outstanding, including unvested restricted shares. Basic and diluted EPS are calculated under the two-class method. The following table sets forth the computation for basic and diluted EPS and reconciliation between basic and diluted shares outstanding: Year Ended December 31, 2023 2022 2021 Net income $ 43,085,548 $ 36,870,762 $ 75,589,539 Less: Net loss (income) attributable to redeemable noncontrolling interest (859,126) 3,563,345 (1,388,930) Net income attributable to common shareholders $ 42,226,422 $ 40,434,107 $ 74,200,609 Weighted average number of outstanding shares - Basic 2,948,625 3,107,604 3,179,497 Weighted average number of outstanding shares - Diluted 2,948,625 3,107,604 3,179,497 Earnings per share attributable to common shareholders Basic $ 14.32 $ 13.01 $ 23.34 Diluted $ 14.32 $ 13.01 $ 23.34 |
Commitments and Contingencies (
Commitments and Contingencies (Notes) | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies The Company indemnifies its directors, officers, and certain employees for certain liabilities that may arise from the performance of their duties to the Company. From time to time, the Company and its subsidiaries may be involved in legal matters incidental to its business. There are currently no such legal matters pending that the Company believes will have a material adverse effect on its consolidated financial statements. However, litigation involves an element of uncertainty, and future developments could cause legal actions or claims to have a material adverse effect on our financial condition, results of operations, and liquidity. Additionally, in the normal course of business, the Company enters into agreements that contain a variety of representations and warranties and that provide indemnification obligations. Certain agreements do not contain any limits on the Company’s liability and could involve future claims that may be made against the Company that have not yet occurred. Therefore, it is not possible to estimate the Company’s potential liability under these indemnities. Further, the Company maintains insurance policies that may provide full or partial coverage against certain of these liabilities. |
Sale of Diamond Hill's High Yie
Sale of Diamond Hill's High Yield-Focused Funds | 12 Months Ended |
Dec. 31, 2023 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Sale of Diamond Hill's High Yield-Focused Funds | Sale of the High Yield-Focused Investment Advisory Contracts DHCM entered into an asset purchase agreement dated February 2, 2021 (the “Purchase Agreement”) with Brandywine Global, a specialist investment manager of Franklin Resources, Inc. The transaction closed on July 30, 2021, at which time Brandywine Global acquired the High Yield-Focused Advisory Contracts. After the closing, the Corporate Credit Fund and the High Yield Fund were renamed as the BrandywineGLOBAL Corporate Credit Fund and the BrandywineGLOBAL High Yield Fund (the “High Yield-Focused Funds”). DHCM determined the gain on this transaction in accordance with FASB ASC 610-20, Gains and Losses from the Derecognition of Nonfinancial Assets . DHCM received an initial cash payment at closing of $9.0 million, which was included in gain on sale of High Yield-Focused Advisory Contracts in the consolidated statements of income during the third quarter of 2021. Under the terms of the Purchase Agreement, DHCM received an additional payment of $6.8 million based on the net revenue of the High Yield-Focused Funds on July 30, 2022, effectively closing the transaction. The additional payment was included in gain on sale of High Yield-Focused Advisory Contracts in the consolidated statements of income during the third quarter of 2022. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pay vs Performance Disclosure | |||
Net income attributable to parent | $ 42,226,422 | $ 40,434,107 | $ 74,200,609 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Dec. 31, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements of the Company have been prepared pursuant to the rules and regulations of the SEC and in accordance with the instructions to Form 10-K. The Company believes that the disclosures contained herein are adequate to make the information presented not misleading. These consolidated financial statements reflect, in the opinion of the Company, all material adjustments (which include only normal recurring adjustments) necessary to fairly present the Company’s financial position as of December 31, 2023 and 2022, and results of operations for the years ended December 31, 2023, 2022 and 2021. Use of Estimates |
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements include the operations of DHIL and its consolidated subsidiaries. All inter-company transactions and balances have been eliminated in consolidation. DHCM holds certain investments in the Funds and DHMF for general corporate investment purposes, to provide seed capital for newly formed strategies, or to add capital to existing strategies. The Funds are organized in a series fund structure in which there are multiple mutual funds within one trust (the “Trust”). The Trust is an open-end investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). Each individual Fund represents a separate share class of a legal entity organized under the Trust. DHMF is organized as a Delaware limited partnership and is exempt from registration under the 1940 Act. DHIL consolidates those subsidiaries and investments over which it has a controlling interest. The Company is generally deemed to have a controlling interest when it owns the majority of the voting interest of a voting rights entity (“VRE”) or is deemed to be the primary beneficiary of a variable interest entity (“VIE”). A VIE is an entity that lacks sufficient equity to finance its activities, or any entity whose equity holders do not have defined power to direct the activities of the entity normally associated with an equity investment. The Company’s analysis to determine whether an entity is a VIE or a VRE involves judgment and consideration of several factors, including an entity’s legal organization, equity structure, the rights of the investment holders, the Company’s ownership interest in the entity, and the Company’s contractual involvement with the entity. The Company continually reviews and reconsiders its controlling interest, VIE or VRE conclusions upon the occurrence of certain events, such as changes to its ownership interest, or amendments to contract documents. The Company performs its consolidation analysis at the individual Fund level and has concluded that the Funds are VREs because the structure of the Funds is such that the shareholders are deemed to have the power through voting rights to direct the activities that most significantly impact each Fund’s economic performance. The Funds are consolidated if DHIL ownership, directly or indirectly, represents a majority interest (greater than 50%). The Company records redeemable noncontrolling interests in consolidated investments for which the Company’s ownership is less than 100%. As of December 31, 2023, the Company has not consolidated any of the Funds. As of December 31, 2022, the Company consolidated the Diamond Hill International Fund. As of December 31, 2021, the Company consolidated the Diamond Hill International Fund and the Diamond Hill Large Cap Concentrated Fund. The Company deconsolidated the Diamond Hill International Fund during the year ended December 31, 2023 and deconsolidated the Diamond Hill Large Cap Concentrated Fund during the year ended December 31, 2022, as the Company’s ownership declined to less than 50% during each of these years. The Company also deconsolidated the Diamond Hill Global Fund during the year ended December 31, 2021, as the Fund was liquidated on December 17, 2021. The Fund(s) consolidated during the applicable period are referred to as the “Consolidated Fund(s).” DHCM is the investment advisor of DHMF and is the managing member of Diamond Hill Fund GP, LLC (the “General Partner”), which is the general partner of DHMF. DHCM is wholly-owned by, and consolidated with, DHIL. Further, through its control of the General Partner, DHCM has the power to direct DHMF’s economic activities and the right to receive investment advisory fees from DHMF that may be significant. DHMF commenced operations on June 1, 2021, and its underlying assets consist primarily of marketable securities. The Company concluded DHMF was a VIE given that: (i) DHCM has disproportionately less voting interest than economic interest, and (ii) DHMF’s limited partners have full power to remove the General Partner (which is controlled by DHCM, which is controlled by DHIL) due to the existence of substantive kick-out rights. In addition, substantially all of DHMF’s activities are conducted on behalf of the General Partner, which has disproportionately few voting rights. The Company concluded it is not the primary beneficiary of DHMF as it lacks the power to control DHMF, since DHMF’s limited partners have single-party kick-out rights and can unilaterally remove the General Partner without cause. DHCM’s investments in DHMF are reported as a component of the Company’s investment portfolio and valued at DHCM’s respective share of DHMF's net income or loss. Gains and losses attributable to changes in the value of DHCM’s interests in DHMF are included in the Company’s reported investment income. The Company’s exposure to loss as a result of its involvement with DHMF is limited to the amount of its investment. DHCM is not obligated to provide, and has not provided, financial or other support to DHMF, except for its investments to date and its contractually provided investment advisory responsibilities. The Company has not provided liquidity arrangements, guarantees, or other commitments to support DHMF’s operations, and DHMF’s creditors and interest holders have no recourse to the general credit of the Company. |
Redeemable Noncontrolling Interest | Redeemable Noncontrolling Interest |
Segment Information | Segment Information Management has determined that the Company operates in a single business segment, which is providing investment advisory and related services to clients through pooled vehicles, including the Funds and DHMF, separately managed accounts, CITs, other pooled vehicles including sub-advised funds, and model delivery programs. Therefore, the Company does not present disclosures relating to operating segments in annual or interim financial statements. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include demand deposits and money market mutual funds held by DHCM. The Company considers all highly liquid temporary cash instruments with an original maturity of three months or less to be cash equivalents. The Company places its cash on deposit with U.S. financial institutions that are insured by the Federal Deposit Insurance Corporation (“FDIC”) up to $250,000. The Company’s credit risk in the event of failure of these financial institutions is represented by the difference between the FDIC limit and the total amount on deposit. Management monitors the financial institutions’ creditworthiness in conjunction with balances on deposit to minimize risk. The Company from time to time may have amounts on deposit in excess of the insured limits. As of December 31, 2023, the Company had $2.8 million and $44.2 million in demand deposits and money market mutual funds, respectively. As of December 31, 2022, the Company had $2.8 million and $60.4 million in demand deposits and money market mutual funds, respectively. |
Accounts Receivable | Accounts Receivable |
Investments | Investments Management determines the appropriate classification of the Company’s investments at the time of purchase and re-evaluates its determination for each reporting period. Company sponsored investments, where the Company has neither the control nor the ability to exercise significant influence, as well as securities held in the Consolidated Funds, are measured at fair value based on quoted market prices. Unrealized gains and losses are recorded as investment income (loss) in the Company's consolidated statements of income. Investments classified as equity method investments represent investments in which the Company owns 20% to 50% of the outstanding voting interests in the entity or where it is determined that the Company is able to exercise significant influence but not control over the investments. When using the equity method, the Company recognizes its respective share of the investee’s net income or loss for the period, which is recorded as investment income (loss) in the Company’s consolidated statements of income. |
Property and Equipment | Property and Equipment Property and equipment, consisting of leasehold improvements, right-of-use lease assets, computer equipment, capitalized software, furniture, and fixtures are carried at cost less accumulated depreciation. Accumulated depreciation was $10.2 million and $8.9 million as of December 31, 2023 and 2022, respectively. Depreciation is calculated using the straight-line method over the estimated lives of the assets. Implementation costs incurred to develop or obtain internal-use software, including hosting arrangements, are capitalized and expensed on a straight-line basis over either the estimated useful life of the respective software or the term of the hosting arrangement. Property and equipment is tested for impairment when there is an indication that the carrying amount of an asset may not be recoverable. When an asset is determined to not be recoverable, the impairment loss is measured based on the excess, if any, of the carrying value of the asset over its fair value. |
Revenue Recognition | Revenue Recognition – General Revenue Recognition – Investment Advisory Fees DHCM’s investment advisory contracts with clients have a single performance obligation because the contracted services are not separately identifiable from other obligations in the contracts, and therefore, are not distinct. All obligations to provide investment advisory services are satisfied over time by DHCM. The fees DHCM receives for its services under its investment advisory contracts are based on AUM, which changes based on the value of securities held under each investment advisory contract. These fees are thereby constrained and represent variable consideration, and they are excluded from revenue until the AUM on which DHCM’s client is billed is no longer subject to market fluctuations. DHCM also provides its strategy model portfolios and related services to sponsors of model delivery programs. For its services, DHCM is paid a model delivery fee by the program sponsor at a pre-determined rate based on the amount of AUA in the program. Revenue Recognition – Performance-Based Fees Revenue Recognition – Mutual Fund Administration DHCM has an administrative and transfer agency services agreement with the Funds under which DHCM performs certain services for each Fund. These services include performance obligations such as mutual fund administration, fund accounting, transfer agency, and other related functions. These services are performed concurrently under DHCM’s agreement with the Funds, all performance obligations to provide these administrative services are satisfied over time, and the Company recognizes the related revenue as time progresses. Each Fund pays DHCM a fee for performing these services, which is calculated using an annual rate multiplied by the average daily net assets of each respective Fund share class. These fees are thereby constrained and represent variable consideration, and they are excluded from revenue until the AUM on which DHCM bills the Funds is no longer subject to market fluctuations. The Funds have selected and contractually engaged certain vendors to fulfill various services to benefit the Funds’ shareholders or to satisfy regulatory requirements of the Funds. These services include, among others, required shareholder mailings, federal and state registrations, and legal and audit services. In fulfilling a portion of its role under the administration and transfer agency services agreement with the Funds, DHCM acts as agent and pays for these services on behalf of the Funds. Each vendor is independently responsible for fulfillment of the services it has been engaged to provide and negotiates its fees and terms directly with the Funds’ management and board of trustees. Each year, the Funds’ board of trustees reviews the fee that each Fund pays to DHCM, and specifically considers the contractual expenses that DHCM pays on behalf of the Funds. As a result, DHCM is not involved in the delivery or pricing of these services, and bears no risk related to these services. Revenue has been recorded net of these Fund-related expenses. |
Income Taxes | Income Taxes The Company accounts for current and deferred income taxes through an asset and liability approach. Deferred tax assets are recognized for deductible temporary differences, and deferred tax liabilities are recognized for taxable temporary differences. Deferred tax assets are reduced by a valuation allowance when it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. The Company is subject to examination by federal and applicable state and local jurisdictions for various tax periods. The Company’s income tax positions are based on research and interpretations of the income tax laws and rulings in each of the jurisdictions in which it does business. Due to the subjectivity of interpretations of laws and rulings in each jurisdiction, the differences and interplay in tax laws among those jurisdictions, and the inherent uncertainty in estimating the final resolution of complex tax audit matters, the Company’s estimates of income tax liabilities may differ materially from actual payments or assessments. The Company regularly assesses its positions with regard to tax exposures and records liabilities for these uncertain tax positions and related interest and penalties, if any, according to the principles of Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 740, Income Taxes. The Company records interest and penalties within income tax expense on the income statement. See Note 9. |
Earnings Per Share | Earnings Per Share Basic and diluted earnings per share (“EPS”) are computed by dividing net income attributable to common shareholders by the weighted average number of DHIL common shares outstanding for the period, which includes unvested restricted shares. See Note 10 |
New and Newly Issued But Not Yet Adopted Accounting Guidance | Recently Adopted Accounting Guidance The Company did not adopt any new accounting guidance during the year ended December 31, 2023 that had a material effect on its financial position or results of operations. Newly Issued But Not Yet Adopted Accounting Guidance |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Revenue under contracts with clients | Revenue from contracts with clients that was earned during the years ended December 31, 2023, 2022 and 2021 include: Year Ended December 31, 2023 Investment advisory Mutual fund Total revenue Diamond Hill Funds $ 84,810,452 $ 7,536,871 $ 92,347,323 Separately managed accounts, excluding performance-based fees 24,898,695 — 24,898,695 Performance-based fees 1,176,351 — 1,176,351 Other pooled vehicles 9,261,533 — 9,261,533 Model delivery 5,211,113 — 5,211,113 Collective investment trusts 3,821,356 — 3,821,356 $ 129,179,500 $ 7,536,871 $ 136,716,371 Year Ended December 31, 2022 Investment advisory Mutual fund Total revenue Diamond Hill Funds $ 98,873,571 $ 10,170,502 $ 109,044,073 Separately managed accounts, excluding performance-based fees 26,200,724 — 26,200,724 Performance-based fees 1,500,225 — 1,500,225 Other pooled vehicles 9,410,541 — 9,410,541 Model delivery 5,910,061 — 5,910,061 Collective investment trusts 2,430,395 — 2,430,395 $ 144,325,517 $ 10,170,502 $ 154,496,019 Year Ended December 31, 2021 Investment advisory Mutual fund Total revenue Diamond Hill Funds $ 113,602,317 $ 12,056,228 $ 125,658,545 Separately managed accounts, excluding performance-based fees 27,882,488 — 27,882,488 Performance-based fees 11,860,051 — 11,860,051 Other pooled vehicles 10,166,928 — 10,166,928 Model delivery 4,977,234 — 4,977,234 Collective investment trusts 1,648,591 — 1,648,591 $ 170,137,609 $ 12,056,228 $ 182,193,837 |
Assets under management (AUM) subject to variable rate fees and the variable rate fees | The Company’s next performance measurement period will be the twelve months ending September 30, 2024. AUM subject to performance-based fees was approximately $518.9 million as of December 31, 2023. |
Mutual fund administration gross and net revenue | Mutual fund administration gross and net revenue are summarized below: Year Ended December 31, 2023 2022 2021 Mutual fund administration: Administration revenue, gross $ 21,597,721 $ 25,188,386 $ 29,635,451 Fund related expense (14,060,850) (15,017,884) (17,579,223) Mutual fund administration revenue, net $ 7,536,871 $ 10,170,502 $ 12,056,228 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of market value of investments | The following table summarizes the carrying value of the Company’s investments as of December 31, 2023 and 2022: As of December 31, 2023 2022 Fair value investments: Securities held in Consolidated Funds (a) — $ 54,740,993 Company-sponsored investments $ 63,208,573 66,828,910 Company-sponsored equity method investments 84,530,289 24,105,808 Total Investments $ 147,738,862 $ 145,675,711 (a) Of the securities held in the Consolidated Funds as of December 31, 2022, DHCM directly held $37.5 million and non-controlling shareholders held $17.2 million. |
Investment Income | The components of net investment income (loss) are as follows: For the Year Ended December 31, 2023 2022 2021 Realized gains (losses) $ 39,096 $ (118,408) $ 15,676,405 Change in unrealized 15,690,012 (24,082,672) (2,352,649) Dividends 7,517,393 4,193,792 3,221,448 Other loss (175,060) (179,223) (163,988) Investment income (loss), net $ 23,071,441 $ (20,186,511) $ 16,381,216 |
Equity Method Investments | The following table includes the condensed summary financial information from the Company’s equity method investments as of December 31, 2023 and 2022, and for the years ended December 31, 2023, 2022, and 2021: As of December 31, 2023 2022 Total assets $ 162,145,182 $ 38,828,388 Total liabilities 4,551,099 278,675 Net assets 157,594,083 38,549,713 DHCM’s portion of net assets $ 84,530,289 $ 24,105,808 For the Year Ended December 31, 2023 2022 2021 Investment income $ 1,349,183 $ 413,528 $ 106,440 Expenses 460,670 134,478 37,820 Net realized gains 311,950 378,476 — Change in unrealized 15,879,847 (402,230) 977,920 Net income 17,080,310 255,296 1,046,540 DHCM’s portion of net income (loss) $ 9,728,056 $ (405,393) $ 914,855 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Summary of Investment Values Based Upon Fair Value Hierarchy | The following table summarizes investments that are recognized in the Company’s consolidated balance sheet using fair value measurements (excludes investments classified as equity method investments) determined based upon the differing levels as of December 31, 2023 and 2022: December 31, 2023 Level 1 Level 2 Level 3 Total Cash equivalents $ 44,171,397 — — $ 44,171,397 Fair value investments Company-sponsored investments 63,208,573 — — 63,208,573 December 31, 2022 Cash equivalents 60,412,001 — — 60,412,001 Fair value investments Securities held in Consolidated Funds (a) 21,542,950 $ 33,198,043 — 54,740,993 Company-sponsored investments $ 66,828,910 — — $ 66,828,910 (a) Of the securities held in the Consolidated Funds as of December 31, 2022, the Company directly held $37.5 million and non-controlling shareholders held $17.2 million. |
Compensation Plans (Tables)
Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Roll-forward of outstanding restricted stock grants issued | The following table represents a roll-forward of outstanding restricted stock and related activity for the year ended December 31, 2023: Shares Weighted-Average Outstanding Restricted Stock as of December 31, 2022 219,459 $ 165.62 Grants issued 59,578 186.85 Grants vested (81,745) 183.64 Grants forfeited (7,120) 161.14 Outstanding Restricted Stock as of December 31, 2023 190,172 $ 164.69 |
Expense recognition of deferred compensation | The recognition of compensation expense related to deferred compensation over the remaining vesting periods is as follows: 2024 2025 2026 2027 2028 Thereafter Total $ 8,956,756 $ 4,603,980 $ 1,299,220 $ 366,417 $ 165,854 $ 191 $ 15,392,418 |
Schedule of Grants Issued and Grant Date Fair Value | The following table represents DHIL common shares issued as part of the Company’s incentive compensation program during the years ended December 31, 2023, 2022, and 2021: Shares Issued Grant Date Value December 31, 2023 — — December 31, 2022 2,743 $ 487,870 December 31, 2021 3,681 $ 529,806 |
Summary of company expenses attributable to the 401(k) Plan | The following table summarizes the Company’s expenses attributable to the 401(k) plan during the years ended December 31, 2023, 2022 and 2021: Shares Issued Share Contributions Cash Contributions Total Company Contributions December 31, 2023 99 $ 16,344 $ 3,067,630 $ 3,083,974 December 31, 2022 211 37,313 2,910,156 2,947,469 December 31, 2021 506 $ 87,667 $ 2,779,641 $ 2,867,308 |
Operating Leases (Tables)
Operating Leases (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Summary of total lease and operating expense | The following table summarizes the total lease and the related operating expenses for the years ended December 31, 2023, 2022 and 2021: For the year ended December 31, 2023 2022 2021 $ 908,516 $ 918,496 $ 932,637 |
Future minimum lease payments | The approximate future minimum lease payments under the operating lease are as follows: Future Minimum Lease Payments by Year 2024 2025 Thereafter Total $ 624,179 $ 156,044 $ — $ 780,223 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Summary of consolidated provision for income taxes | The provision for income taxes consists of: For the year ended December 31, 2023 2022 2021 Current federal income tax provision $ 9,974,451 $ 14,494,857 $ 20,987,801 Current state and local income tax provision 2,731,661 4,119,580 6,472,120 Deferred income tax expense (benefit) 2,783,768 (4,526,654) (1,410,106) Provision for income taxes $ 15,489,880 $ 14,087,783 $ 26,049,815 |
Summary of reconciliation of income tax expense | The following table reconciles the statutory federal income tax rate to the Company’s effective income tax rate: 2023 2022 2021 Statutory U.S. federal income tax rate 21.0 % 21.0 % 21.0 % State and local income taxes, net of federal benefit 4.7 4.7 4.8 Internal revenue code section 162 limitations 1.3 1.5 0.9 Excess tax deficit on vesting of restricted stock 0.3 0.1 0.1 Income tax benefit from dividends paid on restricted stock (0.5) (0.9) (1.0) Other — (0.6) 0.2 Unconsolidated effective income tax rate 26.8 % 25.8 % 26.0 % Impact attributable to redeemable noncontrolling interest (a) (0.4) 1.8 (0.4) Effective income tax rate 26.4 % 27.6 % 25.6 % (a) The provision for income taxes includes expense (benefit) attributable to the fact that the Company’s operations include the Consolidated Funds, which are not subject to federal income taxes. Accordingly, a portion of the Company’s earnings are not subject to corporate tax levels. |
Summary of deferred tax assets and liabilities | Net deferred tax assets consisted of the following as of December 31, 2023 and 2022: 2023 2022 Stock-based compensation $ 2,778,585 $ 3,416,038 Accrued compensation 10,715,239 9,297,425 Unrealized (gains) losses (1,487,350) 2,362,688 Property and equipment (422,062) (712,794) Other assets and liabilities 6,026 10,849 Net deferred tax assets $ 11,590,438 $ 14,374,206 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Computation for earnings per share | The following table sets forth the computation for basic and diluted EPS and reconciliation between basic and diluted shares outstanding: Year Ended December 31, 2023 2022 2021 Net income $ 43,085,548 $ 36,870,762 $ 75,589,539 Less: Net loss (income) attributable to redeemable noncontrolling interest (859,126) 3,563,345 (1,388,930) Net income attributable to common shareholders $ 42,226,422 $ 40,434,107 $ 74,200,609 Weighted average number of outstanding shares - Basic 2,948,625 3,107,604 3,179,497 Weighted average number of outstanding shares - Diluted 2,948,625 3,107,604 3,179,497 Earnings per share attributable to common shareholders Basic $ 14.32 $ 13.01 $ 23.34 Diluted $ 14.32 $ 13.01 $ 23.34 |
Significant Accounting Polici_4
Significant Accounting Policies - Revenue From Contracts with Customers (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 136,716,371 | $ 154,496,019 | $ 182,193,837 |
Investment advisory | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 129,179,500 | 144,325,517 | 170,137,609 |
Mutual fund administration, net | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 7,536,871 | 10,170,502 | 12,056,228 |
Diamond Hill Funds | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 92,347,323 | 109,044,073 | 125,658,545 |
Diamond Hill Funds | Investment advisory | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 84,810,452 | 98,873,571 | 113,602,317 |
Diamond Hill Funds | Mutual fund administration, net | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 7,536,871 | 10,170,502 | 12,056,228 |
Separately managed accounts, excluding performance-based fees | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 24,898,695 | 26,200,724 | 27,882,488 |
Separately managed accounts, excluding performance-based fees | Investment advisory | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 24,898,695 | 26,200,724 | 27,882,488 |
Separately managed accounts, excluding performance-based fees | Mutual fund administration, net | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 0 | 0 | 0 |
Performance-based fees | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 1,176,351 | 1,500,225 | 11,860,051 |
Performance-based fees | Investment advisory | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 1,176,351 | 1,500,225 | 11,860,051 |
Performance-based fees | Mutual fund administration, net | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 0 | 0 | 0 |
Other pooled vehicles | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 9,261,533 | 9,410,541 | 10,166,928 |
Other pooled vehicles | Investment advisory | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 9,261,533 | 9,410,541 | 10,166,928 |
Other pooled vehicles | Mutual fund administration, net | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 0 | 0 | 0 |
Model delivery | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 5,211,113 | 5,910,061 | 4,977,234 |
Model delivery | Investment advisory | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 5,211,113 | 5,910,061 | 4,977,234 |
Model delivery | Mutual fund administration, net | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 0 | 0 | 0 |
Collective investment trusts | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 3,821,356 | 2,430,395 | 1,648,591 |
Collective investment trusts | Investment advisory | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 3,821,356 | 2,430,395 | 1,648,591 |
Collective investment trusts | Mutual fund administration, net | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 0 | $ 0 | $ 0 |
Significant Accounting Polici_5
Significant Accounting Policies - Mutual Fund Administration Revenue (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenue from External Customer [Line Items] | |||
Total revenue | $ 136,716,371 | $ 154,496,019 | $ 182,193,837 |
Administration revenue, gross | |||
Revenue from External Customer [Line Items] | |||
Total revenue | 21,597,721 | 25,188,386 | 29,635,451 |
Fund related expense | |||
Revenue from External Customer [Line Items] | |||
Expenses | (14,060,850) | (15,017,884) | (17,579,223) |
Mutual fund administration revenue, net | |||
Revenue from External Customer [Line Items] | |||
Total revenue | $ 7,536,871 | $ 10,170,502 | $ 12,056,228 |
Significant Accounting Polici_6
Significant Accounting Policies - Textual (Details) | 12 Months Ended | ||
Dec. 31, 2023 USD ($) payment | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Business Organization And Significant Accounting Policies [Line Items] | |||
Number of business segment | payment | 1 | ||
Allowance for doubtful accounts | $ 0 | $ 0 | |
Accounts receivable | 18,051,241 | 17,329,034 | |
Accumulated depreciation | $ 10,200,000 | 8,900,000 | |
Client performance period | 5 years | ||
Revenue | $ 136,716,371 | 154,496,019 | $ 182,193,837 |
Cash equivalents | 44,171,397 | 60,412,001 | |
Asset Under Management Contractual Period End Date 4 | |||
Business Organization And Significant Accounting Policies [Line Items] | |||
Performance-based fees | 518,900,000 | ||
Level 1 | |||
Business Organization And Significant Accounting Policies [Line Items] | |||
Cash equivalents | 44,171,397 | 60,412,001 | |
Related Party | |||
Business Organization And Significant Accounting Policies [Line Items] | |||
Accounts receivable | 9,100,000 | 9,300,000 | |
Demand Deposits | Level 1 | |||
Business Organization And Significant Accounting Policies [Line Items] | |||
Cash equivalents | 2,800,000 | 2,800,000 | |
Money Market Funds | Level 1 | |||
Business Organization And Significant Accounting Policies [Line Items] | |||
Cash equivalents | 44,200,000 | 60,400,000 | |
Variable rate fees | |||
Business Organization And Significant Accounting Policies [Line Items] | |||
Revenue | 1,200,000 | 1,500,000 | 11,900,000 |
Mutual fund administration, net | |||
Business Organization And Significant Accounting Policies [Line Items] | |||
Revenue | $ 7,536,871 | $ 10,170,502 | $ 12,056,228 |
Investments - Summary of Market
Investments - Summary of Market Value of Investments (Detail) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Investment Holdings [Line Items] | ||
Company sponsored equity method investments | $ 84,530,289 | $ 24,105,808 |
Total Investments | 147,738,862 | 145,675,711 |
Securities held in Consolidated Funds | ||
Investment Holdings [Line Items] | ||
Fair value investments | 0 | 54,740,993 |
Securities held in Consolidated Funds | Parent | ||
Investment Holdings [Line Items] | ||
Fair value investments | 37,500,000 | |
Securities held in Consolidated Funds | Redeemable Noncontrolling Interest | ||
Investment Holdings [Line Items] | ||
Fair value investments | 17,200,000 | |
Company sponsored investments | ||
Investment Holdings [Line Items] | ||
Fair value investments | 63,208,573 | 66,828,910 |
Fair value investments | $ 63,208,573 | $ 66,828,910 |
Investments - Investment Income
Investments - Investment Income (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |||
Realized gains | $ 39,096 | $ (118,408) | $ 15,676,405 |
Unrealized gains (losses) | 15,690,012 | (24,082,672) | (2,352,649) |
Dividends | 7,517,393 | 4,193,792 | 3,221,448 |
Other investment income (loss) | (175,060) | (179,223) | (163,988) |
Net investment income (loss) | $ 23,071,441 | $ (20,186,511) | $ 16,381,216 |
Investments - Equity Method Inv
Investments - Equity Method Investments (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of Equity Method Investments [Line Items] | |||
Assets | $ 232,094,348 | $ 249,821,410 | |
Liabilities | (71,777,540) | (72,022,967) | |
Company sponsored equity method investments | 84,530,289 | 24,105,808 | |
Investment income (loss), net | 23,071,441 | (20,186,511) | $ 16,381,216 |
Realized gains | 39,096 | (118,408) | 15,676,405 |
Unrealized gains (losses) | 15,690,012 | (24,082,672) | (2,352,649) |
DHCM’s portion of net income (loss) | 9,728,056 | (405,393) | 914,855 |
Equity Method Investment, Nonconsolidated Investee or Group of Investees | |||
Schedule of Equity Method Investments [Line Items] | |||
Assets | 162,145,182 | 38,828,388 | |
Liabilities | (4,551,099) | (278,675) | |
Net assets | 157,594,083 | 38,549,713 | |
Investment income (loss), net | 1,349,183 | 413,528 | 106,440 |
Other Cost and Expense, Operating | 460,670 | 134,478 | 37,820 |
Realized gains | 311,950 | 378,476 | 0 |
Unrealized gains (losses) | 15,879,847 | (402,230) | 977,920 |
Net income | $ 17,080,310 | $ 255,296 | $ 1,046,540 |
Investments - Textual (Details)
Investments - Textual (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Debt and Equity Securities, FV-NI [Line Items] | ||
Equity Method Investment, Deferred Compensation Plan Investments | $ 6,900,000 | |
Company sponsored equity method investments | $ 84,530,289 | $ 24,105,808 |
Micro Cap Fund LP | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Equity method investment | 85% | |
DMHF | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Company sponsored equity method investments | $ 17,700,000 | 13,100,000 |
Large Cap Concentrated Fund | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Equity method investment | 47% | |
Securities held in Consolidated Funds | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Trading Investments | $ 0 | 54,740,993 |
Parent | Securities held in Consolidated Funds | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Trading Investments | 37,500,000 | |
Redeemable Noncontrolling Interest | Securities held in Consolidated Funds | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Trading Investments | $ 17,200,000 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Investment Values Based Upon Fair Value Hierarchy (Detail) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | $ 44,171,397 | $ 60,412,001 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 44,171,397 | 60,412,001 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Securities held in Consolidated Funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value investments | 0 | 54,740,993 |
Securities held in Consolidated Funds | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value investments | 21,542,950 | |
Securities held in Consolidated Funds | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value investments | 33,198,043 | |
Securities held in Consolidated Funds | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value investments | 0 | |
Company sponsored investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value investments | 63,208,573 | 66,828,910 |
Company sponsored investments | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value investments | 63,208,573 | 66,828,910 |
Company sponsored investments | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value investments | 0 | 0 |
Company sponsored investments | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value investments | $ 0 | 0 |
Parent | Securities held in Consolidated Funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value investments | 37,500,000 | |
Redeemable Noncontrolling Interest | Securities held in Consolidated Funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value investments | $ 17,200,000 |
Fair Value Measurements - Textu
Fair Value Measurements - Textual (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | $ 44,171,397 | $ 60,412,001 |
Securities held in Consolidated Funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value investments | 0 | 54,740,993 |
Parent | Securities held in Consolidated Funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value investments | 37,500,000 | |
Redeemable Noncontrolling Interest | Securities held in Consolidated Funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value investments | 17,200,000 | |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | $ 44,171,397 | 60,412,001 |
Level 1 | Securities held in Consolidated Funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value investments | $ 21,542,950 |
Line Of Credit (Details)
Line Of Credit (Details) - The Credit Agreement - Line of Credit | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Line of Credit Facility [Line Items] | |
Line of Credit Facility, Maximum Borrowing Capacity | $ 25,000,000 |
Debt Instrument, Unused Borrowing Capacity Fee Rate | 0.10% |
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | |
Line of Credit Facility [Line Items] | |
Debt Instrument, Basis Spread on Variable Rate | 1.10% |
Capital Stock (Details)
Capital Stock (Details) - shares | Dec. 31, 2023 | Dec. 31, 2022 |
Equity [Abstract] | ||
Preferred stock, shares authorized (in shares) | 1,000,000 | 1,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Compensation Plans - Roll Forwa
Compensation Plans - Roll Forward of Restricted Stock Grants (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Shares | |||
Outstanding shares, Beginning Balance (in shares) | 211,575 | ||
Outstanding shares, Ending Balance (in shares) | 190,172 | 211,575 | |
Restricted Stock Units (RSUs) | |||
Shares | |||
Outstanding shares, Beginning Balance (in shares) | 219,459 | ||
Grants issued (in shares) | 59,578 | ||
Grants vested (in shares) | (81,745) | ||
Grants forfeited (in shares) | (7,120) | ||
Outstanding shares, Ending Balance (in shares) | 190,172 | 219,459 | |
Weighted-Average Grant Date Price per Share | |||
Beginning of the period (in dollars per share) | $ 165.62 | ||
Grants issued (in dollars per share) | 186.85 | $ 176.46 | $ 158.92 |
Grants vested (in dollars per share) | 183.64 | ||
Grants forfeited (in dollars per share) | 161.14 | ||
End of the period (in dollars per share) | $ 164.69 | $ 165.62 |
Compensation Plans - Summary of
Compensation Plans - Summary of Deferred Compensation Expense Recognition (Details) - Restricted Stock Units (RSUs) | Dec. 31, 2023 USD ($) |
Expense recognition of deferred compensation | |
2020 | $ 8,956,756 |
2021 | 4,603,980 |
2022 | 1,299,220 |
2023 | 366,417 |
2024 | 165,854 |
Thereafter | 191 |
Total | $ 15,392,418 |
Compensation Plans - Schedule o
Compensation Plans - Schedule of Grants Issued and Grant Date Fair Value (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Grant Date Value | $ 0 | $ 487,870 | $ 529,806 |
Common Stock | |||
Shares Issued | 2,743 | 3,681 | |
Grant Date Value | $ 487,870 | $ 529,806 |
Compensation Plans - 401(k) Pla
Compensation Plans - 401(k) Plan (Details) - 401K - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Issuance of common stock related to 401k plan match (in shares) | 99 | 211 | 506 |
Share Contributions | $ 16,344 | $ 37,313 | $ 87,667 |
Cash Contributions | 3,067,630 | 2,910,156 | 2,779,641 |
Total Company Contributions | $ 3,083,974 | $ 2,947,469 | $ 2,867,308 |
Compensation Plans - Textual (D
Compensation Plans - Textual (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | $ 13,800,000 | $ 9,100,000 | $ 5,200,000 |
Deferred compensation equity | 15,392,418 | 17,011,144 | |
Proceeds received under employee stock purchase plan | $ 409,790 | 526,285 | $ 603,268 |
Deferred compensation arrangement, fully vested employee elected deferral period | 5 years | ||
Deferred compensation liability, current and noncurrent | $ 36,087,170 | $ 30,744,990 | |
2022 Equity and Cash Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Authorizes the issuance of Common Shares in various forms of equity awards (in shares) | 300,000 | ||
2011 Equity and Cash Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common Shares available for awards (in shares) | 234,952 | ||
Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Grants issued (in dollars per share) | $ 186.85 | $ 176.46 | $ 158.92 |
Employee Stock Purchase Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Authorizes the issuance of Common Shares in various forms of equity awards (in shares) | 89,426 | ||
ESPP shares purchased during year (in shares) | 2,904 | 3,392 | |
Proceeds received under employee stock purchase plan | $ 400,000 | $ 500,000 | |
Share based payment expense | $ 100,000 | $ 100,000 |
Operating Leases - Textual (Det
Operating Leases - Textual (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 USD ($) ft² Location | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Leases [Abstract] | |||
Lessee leasing agreements, operating leases, area under lease (in sqft) | ft² | 37,829 | ||
Number of office space locations | Location | 1 | ||
Operating Lease, Right-of-Use Asset | $ 0.6 | $ 1.1 | |
Operating Lease, Liability | 0.8 | 1.4 | |
Operating lease expense excluding rent | $ 0.4 | $ 0.4 | $ 0.4 |
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Accounts Payable and Accrued Liabilities | Accounts Payable and Accrued Liabilities | |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Property, Plant and Equipment, Net | Property, Plant and Equipment, Net |
Operating Leases - Summary of L
Operating Leases - Summary of Lease and Operating Expenses (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Summary of total lease and operating expense | |||
Lease and related operating expenses | $ 908,516 | $ 918,496 | $ 932,637 |
Operating Leases - Schedule of
Operating Leases - Schedule of Future Minimum Lease Payments (Details) | Dec. 31, 2023 USD ($) |
Future minimum lease payments under the operating leases | |
2024 | $ 624,179 |
2025 | 156,044 |
Thereafter | 0 |
Total | $ 780,223 |
Income Taxes - Summary of Conso
Income Taxes - Summary of Consolidated Provision for Income Taxes (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Summary of consolidated Federal income tax return | |||
Current federal income tax provision | $ 9,974,451 | $ 14,494,857 | $ 20,987,801 |
Current state and local income tax provision | 2,731,661 | 4,119,580 | 6,472,120 |
Deferred income tax expense (benefit) | 2,783,768 | (4,526,654) | (1,410,106) |
Provision for income taxes | $ 15,489,880 | $ 14,087,783 | $ 26,049,815 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Income Tax Expense to Federal Statutory Rate (Details) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Summary of reconciliation of income tax expense | |||
Statutory U.S. federal income tax rate | 21% | 21% | 21% |
State and local income taxes, net of federal benefit | 4.70% | 4.70% | 4.80% |
Internal revenue code section 162 limitations | 1.30% | 1.50% | 0.90% |
Excess tax deficit on vesting of restricted stock | 0.30% | 0.10% | 0.10% |
Income tax benefit from dividends paid on restricted stock | (0.50%) | (0.90%) | (1.00%) |
Other | 0% | (0.60%) | 0.20% |
Unconsolidated effective income tax rate | 26.80% | 25.80% | 26% |
Impact attributable to redeemable noncontrolling interest (a) | (0.40%) | 1.80% | (0.40%) |
Effective income tax rate | 26.40% | 27.60% | 25.60% |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Summary of Deferred tax assets and liabilities | ||
Stock-based compensation | $ 2,778,585 | $ 3,416,038 |
Accrued compensation | 10,715,239 | 9,297,425 |
Unrealized (gains) losses | (1,487,350) | |
Unrealized (gains) losses | 2,362,688 | |
Property and equipment | (422,062) | (712,794) |
Other assets and liabilities | 6,026 | 10,849 |
Net deferred tax assets | $ 11,590,438 | $ 14,374,206 |
Income Taxes - Textual (Details
Income Taxes - Textual (Details) | Dec. 31, 2023 USD ($) |
Income Tax Disclosure [Abstract] | |
Deferred tax assets, valuation allowance | $ 0 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |||
Net income | $ 43,085,548 | $ 36,870,762 | $ 75,589,539 |
Less: Net loss (income) attributable to redeemable noncontrolling interest | (859,126) | 3,563,345 | (1,388,930) |
NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS | $ 42,226,422 | $ 40,434,107 | $ 74,200,609 |
Weighted Average Number of Shares Outstanding, Diluted [Abstract] | |||
Weighted average number of outstanding shares (in shares) | 2,948,625 | 3,107,604 | 3,179,497 |
Weighted average number of outstanding shares - Diluted (in shares) | 2,948,625 | 3,107,604 | 3,179,497 |
Earnings per share attributable to common shareholders | |||
Basic (in dollars per share) | $ 14.32 | $ 13.01 | $ 23.34 |
Diluted (in dollars per share) | $ 14.32 | $ 13.01 | $ 23.34 |
Sale of Diamond Hill's High Y_2
Sale of Diamond Hill's High Yield-Focused Funds (Details) - Disposal Group, Disposed of by Sale, Not Discontinued Operations - Acquired Funds - USD ($) $ in Millions | Jul. 30, 2022 | Feb. 02, 2021 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Consideration received | $ 9 | |
Additional payment amount | $ 6.8 |
Subsequent Events (Details)
Subsequent Events (Details) | Feb. 28, 2024 $ / shares |
Subsequent Event | |
Subsequent Event [Line Items] | |
Dividends Payable, Amount Per Share | $ 1.50 |