Penn Davis Mcfarland Inc.

Investment Strategy

Penn Davis McFarland implements a disciplined, long-term investment process focusing on fundamental research and concentrated portfolios. Their philosophy is to seek global opportunities through U.S.-listed equities, prioritizing companies with market leadership, high barriers to entry, strong cash flow, healthy balance sheets, shareholder-aligned management, sales growth, margin expansion prospects, and high returns on capital. The firm is unconstrained by style mandates and practices a contrarian, value-focused approach—waiting to invest only when compelling opportunities exist and willing to hold significant cash positions when appropriate. Risk management centers around capital preservation, creating a margin of safety, strong sell discipline, and incremental position building. The firm also offers family office services for select clients.