Our Portfolios

Daruma manages two strategies: a Small-Cap Equity strategy (07/28/95 inception) and a SMid-Cap Equity strategy (04/30/10 inception).

Vera BradleyThe same Investment Team manages both strategies, following the same investment philosophy and process of investing in high-conviction portfolios of no more than 35 stocks.

Our performance confirms that, in a concentrated portfolio, every stock counts. While having big winners and avoiding big losers helps, it’s the main body of the portfolio that drives results, not just the outliers. Our returns come from stockpicking, not index hugging.

image2We depend upon a repeatable investment process, classic fundamental research, a strong investment team, and a culture that demands courage and conviction.

What we do is quite simple. We know that over time, smaller capitalization stocks have outperformed most other asset classes so we operate in the small-cap space. We know that a concentrated, high conviction portfolio of well-chosen stocks should outperform the benchmark so we run portfolios of no more than 35 stocks and make sure every stock counts.  We know that successful stock picking isn’t easy so we bring high levels of intensity, curiosity, discernment, and conviction to the process and constantly challenge ourselves to be better. We know that sourcing compelling new ideas is the single best portfolio construction tool so we focus on identifying new opportunities and make each of our stocks earn its keep.