Equity Investments

Value Creators – US Large and Mid-Cap

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.


Value Creators – US Mid Cap

Assets Under Management:

$181 MM

Strategy Inception:

January 2017

Relevant Information:
Value Creators - US Mid Cap 3Q 2020 Fact Sheet Equity Outlook 3Q20 - Value Creators

Value Creators – US Large Cap

Assets Under Management:

$536 MM

Strategy Inception:

January 2017

Relevant Information:
Value Creators - US Large Cap 3Q 2020 Fact Sheet Equity Outlook 3Q20 - Value Creators

Latest Insights


Portfolio Management

Kevin M. Fogarty, CFA

Portfolio Manager and Senior Equity Analyst