Candoris works together with DSM Capital Partners, an employee owned Asset Manager focused only on Global and US Large Cap Growth companies based in Palm Beach Gardens.
DSM Capital Partners, the firm:
- Founded in 2001, fully employee owned
- Concentrated strategy, focused exclusively on Large Cap Growth companies, investing with a strict valuation discipline
- DSM Capital Partners currently manages US$ 7.8 bn of which US$ 5.7 bn in US Large Cap Growth and US$ 2.1 bn in Global Growth Equities
The Investment Philosophy is as follows:
DSM believes quality growth companies with predictable streams of earnings generate attractive rates of return over time when purchased at rational prices.
DSM’s philosophy focuses on careful selection of quality growth companies from around the world. There are about 600 companies of various market capitalization ranges that meet our criteria. For the US strategy, this is about half.
DSM seeks to invest primarily in large capitalization growth companies with predictable streams of earnings which DSM believes will generate attractive rates of return over time when purchased at rational prices. The US Large Cap Growth strategy may invest up to 15% of its assets in ADR’s of non-domiciled companies. The portfolio generally will contain 35 to 45 stocks.
DSM’s focus on quality growth companies with predictable streams of earnings is coupled with a unique valuation discipline such that we purchase at rational prices and trim/sell when higher valuations reduce projected returns.
DSM assembles a portfolio of these attractive holdings with an eye on diversity of business models and geography of revenue, informed by our macro views.
DSM’s investment philosophy captures various short-term inefficiencies in the market that include:
- overreaction to company reports or news;
- collateral damage or benefit within a sector;
- company inflection point that is not appreciated by investors;
- market corrections that are overdone and
- chronic mis-valuation by investors (high or low).
Our in‑depth knowledge of thorough fundamental analysis, the compact nature of the team, the quality of the information flow and the speed of decision‑making often allows us to take advantage of such typical mispricing of the securities.
DSM will generally only buy a stock that we believe has a forward four quarter P/E ratio that will rise over the next three years. DSM will typically buy when the company clears two hurdles: 1) it must have a P/E on forward four quarters earnings that is at least 10% below the target P/E three years from now and 2) it must have attractive fundamental business characteristics that translate into a reasonably predictable and growing stream of earnings.