Davenport Equity Opportunities portfolio is focused on capital appreciation through a concentrated and flexible approach.
Portfolio Objective
- Long-term capital appreciation
Investment Themes
- Compounding Growth: Strong capital allocation practices and high returns on invested capital
- Owner/Operator: Ownership cultures vested in the long-term growth and success of their companies
- Differentiated Perspective: Rigorous research helps to yield superior risk/return opportunities
Portfolio Construction
- The portfolio typically owns 25-30 stocks
- Position sizes typically start in the 2-3% range
- Overweight high conviction ideas
- Low portfolio turnover
Risk Management
- 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