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