Equity Investments

EAFE High Conviction

Philosophy

DuPont Capital focuses on exploiting asset class specific risk premia they have identified though their differentiated research and insights.

The firm’s EAFE High Conviction strategy aims to generate alpha over the long-term by taking concentrated positions in companies with unique business models and high or improving return characteristics. The firm believes that superior, long-term risk adjusted returns are generated by companies that exhibit industry-leading characteristics and are well-exposed to areas with persistent growth advantages. Such companies tend to have unique, sustainable, and hard to replicate business models.


Process

DuPont Capital believes that share prices are ultimately driven by company fundamentals. The firm takes a long-term approach to investing, measuring growth and return sustainability over a multi-year economic cycle. This approach allows the investment team to consider the behavior of various sectors independently and look beyond the often transitory impact of short-term market sentiment, or the impact of economic cycles.

The firm believes that superior, long-term risk-adjusted returns are generated by companies that exhibit defendable returns’ leadership and are well-exposed to areas with persistent growth advantages. Perceived valuation opportunities reflect a differentiated view from market consensus. A non-consensus view is typically driven by the belief that the earnings power of a company or the persistence of its return advantage has been underestimated. Alternatively, it could be found that company or industry risk has been overestimated, or there are unsubstantiated doubts about expected improvements in growth or margins, due to behavioral biases within the marketplace.


EAFE High Conviction

Assets Under Management:

$211 million

Strategy Inception:

January 2017

Relevant Information:
EAFE High Conviction 3Q 2019 Fact Sheet Equity Outlook 3Q19 - EAFE High Conviction

Portfolio Management

Lode J. Devlaminck

Managing Director, Equities