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Institutional Investors

Investment Philosophy & Approach

All Cap Equity Strategy

DeRoy & Devereaux’s All Cap Equity strategy is an all capitalization core value approach.  We typically maintain focused portfolios (approximately 40 – 60 stocks) of higher-quality issues purchased at what we believe to be material discounts to their fundamental values.  D&D believes in a flexible approach to investing instead of rigid adherence to market benchmarks and style groupings. We typically own stocks across all capitalization ranges, focusing on those companies that offer the most fundamental value. Security selection decisions are based on fundamental research and risk/reward analysis. D&D will try to minimize turnover without forgoing opportunities the market presents.

The cornerstone of the investment approach is our emphasis on security selection based on fundamental research conducted by the firm’s portfolio managers. While mindful of macroeconomic trends and their potential impact on security prices, D&D has a largely bottom-up investment process.

A distinguishing feature of the Firm is that individuals with considerable investment experience conduct all security selection and portfolio management duties. With knowledge of individual companies built up over many years by each of D&D’s portfolio managers, we prefer to invest in companies that we know well as opposed to a defined universe.

Smid Cap Equity Strategy

DeRoy & Devereaux’s Smid Cap Equity strategy leverages the same philosophy and process as our All Cap Equity Strategy with a concentration on the small to mid-cap sector of the market.   The portfolio typically consists of approximately 35-50 names with a market cap less than $15 billion, purchased at what we believe to be material discounts to their fundamental values.  Security selection decisions are based on fundamental research and risk/reward analysis.

Total Return Bond Strategy

DeRoy & Devereaux’s Total Return Bond strategy begins with a disciplined focus on yield.   Over a longer-term investment horizon, the majority of a bond’s return comes from its income stream.  Our investment approach concentrates on this basic fact by emphasizing the higher yielding segments of the bond market.  As total return investors, we select bonds from across the spectrum of maturities, quality, and capital structure.  In building bond portfolios we are comfortable with sector weightings that may differ significantly from popular indices.  We seek to design well-diversified portfolios of quality, high income producing bonds with significant total return potential.  In our effort to build a strong yield advantage portfolio we emphasize corporate bonds, focus on undervalued bonds with a catalyst for improving credit trends and approach sector rotation actively.