Favorite picks from managers of top-ranked fund

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Even with the sharp drop in the indexes this month, the Diamond Hill Select Fund is up 4.5 percent for the year, beating the market by 8 percent as of Thursday's close.

Diamond Hill manages $17 billion in assets, with the Select Fund strategy including mutual fund and separate accounts at $596 million.

The Select Fund's performance ranks in the top 1 percent of its mutual fund category this year and the last three years, according to Morningstar.

The fund was up 44 percent in 2013 and 12 percent in 2014.

In an interview, the fund's portfolio managers, Austin Hawley and Rick Snowdon, discussed their top ideas and how they are beating the market since they took over the fund 2 ½ years ago.

Here is what they said…