Philosophy

Over time, we believe stock performance is highly correlated with growth in earnings. We are long-term investors in financially strong, well-managed companies with sustainable growth prospects. We are all cap growth managers who believe that the individual characteristics of a business are far more important than its size. We prefer to operate across the full market capitalization spectrum and invest in companies that are market leaders of an industry niche. Within these companies, we look for world-class management teams with superior execution skills who deliver on a consistent basis in varied environments. We prefer managements that do not draw large salaries but rather have meaningful equity positions in their companies.

By adhering to our disciplines of primary research, objective valuation analysis and patience, we have been able to achieve superior and consistent returns in managed portfolios. We firmly believe that the constant application of these disciplines protects our portfolios from the temptation of buying into investment fads and “popular” stocks.

Our objective is to provide our clients with long-term growth of their capital as owners of successful well-managed enterprises. To this end and in an effort to preserve capital, the DF Dent Equity Composite has experienced only four negative return years over the last 40 years versus seven negative return years for the S&P 500 Index. In three of those four down years, the DF Dent Equity Composite outperformed the S&P 500 Index. We structure portfolios to reduce exposure to a disappointing year resulting from any one market sector or mistakes in individual security selection. By sticking to our knitting and not getting caught up in short-term investment fads, our investments have demonstrated significant excess returns in both up and down markets.