Strategy
A strategy for identifying undervalued bonds.
For nearly three decades, Dolan McEniry Capital Management has applied the same patient and thoughtful approach to investing in U.S. corporate bonds - identifying securities we believe are undervalued through disciplined credit research, credit analysis, and a steadfast focus on free cash flow. By staying true to this process we have uncovered opportunities where others may see risk.
Our investment philosophy
Finding value through patience, focus, and precision.
Dolan McEniry is a value investor specializing in U.S. corporate bonds. We search for securities that trade at relatively wide spreads and attractive prices but are issued by companies we find to have strong, sustainable cash flow and wide margins of safety. Our objective is to deliver outperformance over time by finding good fundamental values, not through interest-rate or macroeconomic forecasts.
Our investment process
Independent research. Our own Credit analysis. Unwavering execution.
We conduct all credit research in-house - never relying on Wall street reports, rating agencies, or other third parties. Our credit analysis centers on free cash flow: how companies generate it, how they use it, and what it reveals about value and risk. Portfolios are concentrated and deliberately constructed to reflect conviction. Interest rate forecasts are not part of our investment process. We do not invest in banks, insurance companies, or broker-dealers and we limit maturities to ten years or less.
Our Investment Process
Credit analysis guides our process
Cash Flow Strength Drives Value
We evaluate a company's history of generating and allocating free cash flow. We invest in companies who we believe generate it well, allocate it wisely, and have bonds outstanding with attractive prices.
Research Supports Decisive Investing
Credit analysis is our firm’s core competence and all investment research and idea generation is performed in-house without relying on the credit rating agencies or providers of third-party research. Clients get our homework and our ideas.
Contrarian Mindset Provides Clarity
We emphasize investment fundamentals and margins of safety rather than forecasts, trying hard to always avoid herd behavior and short-term thinking.
Long-Term Focus
We measure success over decades, reflecting the trust our clients place in our disciplined strategy and process.
The result
Performance built on a strategy that never wavers.
For nearly three decades, our disciplined and repeatable strategy has focused on producing long-term, risk adjusted performance for our clients. By staying true to our philosophy - striving to find undervalued bonds through credit analysis - Dolan McEniry believes it is well positioned to deliver results through changing markets.