CEO: Why I Want My Firm Off the 'No-Short' List
Rick Dillon, fund manager and chief executive of Diamond Hill Investment Group, demanded that his firm be removed from the SEC's "no-short" list. He told CNBC why short sellers are healthy for his business—and offered his favorite stock now.
Dillon also manages the Diamond Hill Long/Short Fund; it's down 11.80 percent year-to-date; but the fund has grown 2.97 percent over the last three years; and it's up 10.79 percent over the last five years.
"It's better for shareholders to have [shorts] as participants," said Dillon. "Short sellers provide a valuable service in two ways: price discovery—their information content is valuable; and they provide liquidity."
Turning to stock picks, Dillon said "it's time to invest" in crude oil exploration and production. He believes the drops in commodities and oil prices in particular are "strictly short-term," adding, "We look at the next five years."
Dillon's top stock pick: Apache.
Disclosure information was not available for Dillon or for his company.
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