One of the UK’s newer investment boutiques, Devon Equity Management, has joined the Group of Boutique Asset Managers (GBAM).
Devon is an independent fund management company founded in 2019 by fund manager Alexander Darwall, and former colleagues, Richard Pavry and Luca Emo. The firm invests primarily in long-only European equities on behalf of a FTSE 250 investment trust, European Opportunities Trust PLC (JEO.LN), which Darwall has managed since launch in November 2000.
Devon has also recently launched a Luxembourg SICAV comprising two sub funds, a European equities strategy (run along similar lines to the investment trust) and a long only global equities strategy created for colleague, Charlie Southern, who joined Devon from Indus Capital in 2020.
The team at Devon invests in a relatively limited number of “special” companies. These are companies that have above average returns and margins that they can sustain for longer than the market expects. Attributes of such businesses include a strong underlying business model with viable new options for growth; the ability to monetise what they do; they are less dependent on governments and regulators; they typically have a dominant market position and an abundance of intellectual property that makes them, in their view, good investments.
Before investing for its clients, Devon will meet the companies to assess their business model and management team. They will only invest in companies that are considered to have a strong, open and accountable management team whose interests are aligned with shareholders as far as is possible. In addition, Devon looks for companies that stand to benefit from long-term structural trends, such as changing consumer habits, technology and regulation.
Chief executive, Richard Pavry, says: “GBAM and its members share our values. The new perspectives we will gain through being an active participant in the GBAM community will be most helpful in the development of our business.”
GBAM Chairman and CEO of Skagen Funds Tim Warrington, says: “We are delighted to welcome Richard and his colleagues into the GBAM fold. The team at Devon have an impressive long term investment record which, together with their insights, will help further strengthen the Group’s knowledge and understanding of international markets – particularly in Europe.”
