Davenport Core Leaders Portfolio is focused on high quality growth opportunities including market leaders that typically outperform in volatile markets.
Portfolio Objective
- Long-term growth of capital
Investment Themes
- Market capitalizations in excess of $25 billion
- Industry Leadership: Wide competitive moat with commanding and/or growing market share
- Above Average Earnings Growth: Favorable 3-5 year EPS1 trajectory vs. the broader market
- Shrewd Capital Allocation: Savvy use of free cash flow and strong and/or rising ROIC
- Balance Sheet Strength: Manageable debt levels and strong credit rating
- Reasonable Valuation: Cheap relative to the market, peers, history or growth rate
- Leadership: Talented, honest and aligned with shareholders
Portfolio Construction
- The portfolio typically owns 45-55 stocks
- Position sizes typically start in the 1-2% range
- Broad sector diversification
- Low portfolio turnover
Risk Management
- Tend to avoid significant balance sheet or business risk
- Valuation sensitive with focus on margin of safety embedded in purchase price
- Setting upside and downside price targets for all positions
- Typically close to fully invested
Portfolio Management
George L. Smith III, CFA
Jeff Omohundro, CFA
Christopher G. Pearson, CFA