PHILOSOPHY & PROCESS
Our Opportunistic Growth portfolios seek long-term growth of capital. Portfolios are typically invested in a broadly diverse selection of companies that we believe show a high probability for superior growth.
DG Capital believes that corporate earnings are the primary driver of stock prices. Thus we seek to own mid- to large-capitalization companies with growing revenues, a history of strong management and reasonable price-to-earnings valuation. We use a disciplined approach that combines internal research with industry contacts, interviews with company management, trade shows and conferences. The majority of the portfolio will have a core to growth style bias. We will also invest in special situations stocks when such investments will benefit the portfolio.
We focus primarily on the long-term investment horizon with the premise that equity returns will be superior to other asset classes, and growth stocks will provide the best opportunities for significant capital appreciation. However, stock market volatility makes capital preservation strategies important as well.
To this end, we may increase cash levels and/or employ short selling as a defensive measure when we believe that stocks are overvalued (subject to client approval). Employing this active strategy allows us to be quick in reacting to changing market conditions.
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