Investment Philosophy

Diversified Capital Group follows a conservative top-down, fundamental analysis philosophy through a long-only strategy. We invest in large companies that have market capitalizations over $10 billion. We find the most compelling large-cap companies best positioned to capitalize on industry/macroeconomic trends. Our benchmark of comparison is the S&P 500.

We invest in five core industries: 

  • Consumer & Retail

  • Technology

  • Energy

  • Healthcare

  • Financials

Students are placed into industry coverage groups depending on their interests and expertise. The intellectual diversity in DCG provides us with a competitive advantage in being experts of our respective sectors.

Initially, each sector will be comprised of broad index funds that correspond to each sector. Following this, it will become the task of each coverage group to convert up to 80% of the index fund investment into an individual security.

To mitigate risk, a single stock cannot comprise more than 7% of DCG’s portfolio. We will also keep 5% of our portfolio in the gold ETF (GLD).