Nick Watson: Silver-rated Delaware Small Cap Value benefits from a long-tenured team that implements a consistent approach.
Lead manager Chris Beck has been at the helm of this strategy for over two decades. His process emphasizes free cash flow. He looks to identify attractively valued firms that he believes can generate sustainable free cash flows over the long term. That long-term outlook is evident in the portfolio’s low turnover ratio--Beck tends to hold on to his winning picks, which will often appreciate into mid-cap territory. As a result, the portfolio’s average market cap has historically been higher than its Russell 2000 Value benchmark’s.
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Nick Watson does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.