Davenport Small Cap Focus emphasizes smaller capitalization companies with significant growth potential through a concentrated approach.
The Small Cap Focus Fund recently celebrated its 3 year anniversary and earned a 4 star rating from Morningstar. Read More Here
DSCPX portfolio managers, George Smith and Chris Pearson, discuss how they manage assets in the small cap space.
- Long-term growth of capital
- Differentiated ideas in a Less Efficient Universe: Under-followed names with strong growth potential
- Owner/Operators: Potential small cap break-outs with high returns on invested capital
- Out of Favor Situations: Investment opportunities facing temporary challenges
- Position sizes typically start in the 1-2% range
- Low portfolio turnover
- Broad sector diversification
- Tend to avoid significant balance sheet or business risk
- Rigorous research enables greater depth of knowledge of companies we follow and own
- Valuation sensitive with focus on margin of safety embedded in purchase price
George L. Smith, CFA