Diamond Hill Investment Group, Inc. derives its consolidated revenue and net income from investment advisory and fund administration services. As of December 31, 2011, it had four subsidiaries: Diamond Hill Capital Management, Inc. (DHCM), Diamond Hill GP (Cayman) Ltd. (DHGP), Beacon Hill Fund Services, Inc. (BHFS) and BHIL Distributors, Inc. (BHIL). DHCM is an investment adviser and offers advisory services to institutional and individual investors. BHFS provides certain compliance, treasury, and fund administration services to mutual fund companies. BHIL provides underwriting and distribution services to mutual fund companies. BHFS and BHIL collectively operate as Beacon Hill. Beacon Hill provides fund administration services and underwriting services to mutual fund companies, including Diamond Hill Funds (the Funds). It sponsors, markets, and provides investment advisory and related services to clients, including mutual funds, separate accounts, and private investment funds.