Investment Approach

We are Value Investors

De Novo Capital’s investment approach is based on the principles of value investing:

Conduct independent research and analysis.
Focus on the underlying business, not short term stock price swings.
Only invest where we see value.
Invest for the long term.
Use market swings to our advantage.
Be willing to admit when we are wrong and change course quickly.

The portfolio manager will conservatively estimate the intrinsic value of the companies analyzed and only invest when the price is less than this independent assessment of value. Over time, we believe the share price will reflect the intrinsic value of the business.

While the portfolio manager gives consideration to overall economic and market conditions in our analyses and investment decisions, the investment process is “bottom-up,” focusing on companies that will provide good returns over the long term as opposed to trying to predict short term market movements.

We are opportunistic

Many asset management firms invest in indexes or own hundreds of stocks, meaning their returns will mimic the market. De Novo Capital’s client portfolios are concentrated in our best ideas, with generally 12-20 holdings. This allows for focused analysis and lets our best ideas flourish while avoiding stocks that are overvalued.

We are independent

Our independence allows us to move quickly when opportunity knocks.

Rather than follow the crowd into fads or bubbles, De Novo Capital uses selectivity, patience and discipline to take advantage of the mood swings of the market. Stock market volatility provides the opportunity to buy stocks at less than their intrinsic value or sell them for more.

De Novo Capital often holds a portion of our portfolios in cash until we identify investments offering attractive long term returns. While this may reduce returns in a rising market, having cash available in market declines allows us to take advantage of market swings and buy stocks at prices offering attractive long term returns.

Our strategy is a good fit for long-term investors looking to invest a portion of their assets in a concentrated portfolio in pursuit of differentiated returns.

(916) 751-6421
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Contact Us
We’re based in
Granite Bay, CA
[email protected]

Disclaimer

De Novo Capital LLC (“De Novo Capital”) is registered as an investment adviser with the state of California. Registration with the Securities and Exchange Commission or any state securities authority does not imply a certain level of skill or training. This website is intended only for persons in jurisdictions where De Novo Capital is authorized to provide investment advice, and no content should be construed as an offer to provide investment advisory services in any location where such offer would be unlawful. Provision of information about De Novo Capital’s services does not constitute an offer to provide investment advisory services. Such offer can be made only by means of a written advisory agreement. No content herein should be viewed as advice regarding the value of any securities or the advisability of investing in, purchasing, or selling securities. Investing involves risks and may result in the loss of some or all of the principal invested. Before investing, prospective clients should consider their investment objectives and the costs and risks. Investments are not FDIC insured and may lose value. Past performance may not be indicative of future results. The material on this website should be read only in conjunction with the disclosures in De Novo Capital’s Form ADV.