Is Diamond Hill Large Cap Fund A (DHLAX) a Strong Mutual Fund Pick Right Now?

If investors are looking at the Large Cap Blend fund category, Diamond Hill Large Cap Fund A (DHLAX) could be a potential option. DHLAX bears a Zacks Mutual Fund Rank of 2 (Buy), which is based on various forecasting factors like size, cost, and past performance.ObjectiveDHLAX is classified in the Large Cap Blend segment by Zacks, which is an area full of potential. Targeting companies with market caps of more than $10 billion, Large Cap Blend mutual funds offer a stable investment choice; these funds are perfect for investors with a " buy and hold " mindset. Since blended funds mix large, more established firms into their portfolios, investors are exposed to both value and growth opportunities.History of Fund/ManagerDHLAX finds itself in the Diamond Hill family, based out of Columbus, OH. Since Diamond Hill Large Cap Fund A made its debut in July of 2001, DHLAX has garnered more than $317 million in assets. The fund is currently managed by Austin Hawley who has been in charge of the fund since February of 2015.PerformanceObviously, what investors are looking for in these funds is strong performance relative to their peers. DHLAX has a 5-year annualized total return of 10.51% and it sits in the middle third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 6.94%, which places it in the bottom third during this time-frame.It is important to note that the product's returns may not reflect all its expenses. Any fees not reflected would lower the returns. Total returns do not reflect the fund's [%] sale charge. If sales charges were included, total returns would have been lower.When looking at a fund's performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. The standard deviation of DHLAX over the past three years is 17.87% compared to the category average of 15.15%. Over the past 5 years, the standard deviation of the fund is 19.53% compared to the category average of 16.29%. This makes the fund more volatile than its peers over the past half-decade.Risk FactorsInvestors should note that the fund has a 5-year beta of 1.01, which means it is hypothetically as volatile as the market at large. Another factor to consider is alpha, as it reflects a portfolio's performance on a risk-adjusted basis relative to a benchmark-in this case, the S&P 500. Over the past 5 years, the fund has a negative alpha of -4.61. This means that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.HoldingsExamining the equity holdings of a mutual fund is also a valuable exercise. This can show us how the manager is applying their stated methodology, as well as if there are any inherent biases in their approach. For this particular fund, the focus is primarily on equities that are traded in the United States.As of the last filing date, the mutual fund has 81.96% of its assets in stocks, which have an average market capitalization of $115.74 billion. The fund has the heaviest exposure to the following market sectors: Finance Retail Trade Health Industrial Cyclical Technology Turnover is 24%, which means, on average, the fund makes fewer trades than its comparable peers.ExpensesAs competition heats up in the mutual fund market, costs become increasingly important. Compared to its otherwise identical counterpart, a low-cost product will be an outperformer, all other things being equal. Thus, taking a closer look at cost-related metrics is vital for investors. In terms of fees, DHLAX is a no load fund. It has an expense ratio of 0.96% compared to the category average of 0.94%. From a cost perspective, DHLAX is actually more expensive than its peers.While the minimum initial investment for the product is $2,500, investors should also note that there is no minimum for each subsequent investment.Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.Bottom LineOverall, even with its comparatively similar performance, average downside risk, and higher fees, Diamond Hill Large Cap Fund A ( DHLAX ) has a high Zacks Mutual Fund rank, and therefore looks a good potential choice for investors right now.For additional information on the Large Cap Blend area of the mutual fund world, make sure to check out www.zacks.com/funds/mutual-funds. There, you can see more about the ranking process, and dive even deeper into DHLAX too for additional information. And don't forget, Zacks has all of your needs covered on the equity side too! 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