Davenport Value and Income focuses on value opportunities and companies with meaningful dividends and dividend growth potential
Portfolio Objective
- Long-term growth of capital and current income
Investment Themes
- Dividend Aristocrats: High-quality business with track records of maintaining and increasing dividends
- High-Yielders with Capital Appreciation Potential: Above-average dividend yields and potential growth
- Contrarian/Special Situations: Deep values, distressed stocks with temporary headwinds
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