Founded in 1995, Daruma Capital Management invests in high-conviction small- and smid-cap portfolios of no more than 35 stocks. Our firm is 100% employee-owned and manages $949 million for public and corporate pension plans, endowments, foundations and individuals.
We practice true active management by owning only our most compelling ideas. We buy stocks with the potential to go up 50% or more over the next two years, with a reward-to-risk ratio of three to one.
This strategy has resulted in outstanding small-cap long-term performance with average annual portfolio turnover of under 50%.
TRUE ACTIVE MANAGEMENTWe run concentrated portfolios because, in our experience, concentration works. A concentrated portfolio means that every stock has to earn its keep.
A WILL TO WINAs a 100% employee-owned company, our destiny hinges on long-term investment results. We prefer to measure success by our investment track record rather than the amount of assets under management.
OPEN DOOR POLICYOur clients tell us we are refreshingly honest in our updates. We believe that you have a right to speak to the investment team whenever you want, and we will always tell it to you straight.