Equity Investments

US Large and Mid-Cap Value Creators

Philosophy

DuPont Capital’s active equity strategies seek to identify and target sustainable inefficiencies specific to the asset class. Within the US Large and Mid Cap space, DuPont Capital invests in companies with strong franchises, significant free cash flow (FCF) generation power, and value-generating capital allocation policies. The firm believes that strategic use of cash exceeding a company’s organic growth needs can have a significant impact on the long-term value of an investment.


Process

The firm finds that high-quality, reasonably priced stocks with high levels of free cash flow generating power are best identified using a fundamental research approach supplemented by proprietary quantitative screens. Analysts use a structured research process to look for five key characteristics in a company including industry leading position, favorable competitive environment, excellent management team, superior growth outlook, and alignment of interests between management and shareholders. These “value creating” characteristics, as measured by Return on Invested Capital, are blended with relative valuation measures to determine the optimal investments for the strategy.

Due to the time required to realize value from the investments, the strategy is best executed over a long-term investment horizon.


US Mid Cap Value Creators

Assets Under Management:

$180 MM

Strategy Inception:

January 2017

Relevant Information:
US Mid Cap Value Creators 3Q 2019 Equity Outlook 3Q19 - Value Creators

US Large Cap Value Creators

Assets Under Management:

$414 MM

Strategy Inception:

January 2017

Relevant Information:
US Large Cap Value Creators 3Q 2019 Equity Outlook 3Q19 - Value Creators

Latest Insights


Portfolio Management

Kevin M. Fogarty, CFA

Portfolio Manager and Senior Equity Analyst