We run concentrated portfolios with returns dictated by stock selection, not by hugging the index. In our longest-running strategy, we have achieved style consistency one stock at a time while ignoring style boxes.

Daruma Small-Cap versus Russell 2000 Style Indices

The map below reflects our consistent style since inception on 07/28/95 through 03/31/11.

Daruma’s small-cap style of investing consistently falls between deep value and core. By paying attention to valuation, we aim to beat the Russell 2000 with less risk. Over the long haul, we aim to beat all three indices — growth, value and core. In highly speculative, high-growth periods, we will lag the Russell 2000 Growth Index, and when interest rate-sensitive sectors (e.g., REITs and financials) dominate, we may lag the Russell 2000 Value Index.

How We Invest / Style

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