Devotion Capital Management, formerly Schacht Value Investors, is a value-oriented investment management and research firm. As a registered investment advisory firm, we manage separate accounts for individuals and institutions.
Collectively, these individuals are known as the founding fathers of security analysis and “value investing”. One example… In 1934, Benjamin Graham, along with David Dodd, wrote the first textbook on investment research entitled Security Analysis. In 1949, Graham authored The Intelligent Investor, which Warren Buffett calls, “the best book on investing ever written.” The value investing tradition that grew out of these works has guided many of world’s most successful investors. That tradition also informs the investment approach of Devotion Capital Management today.
These securities are built into a concentrated portfolio, which reflects our best ideas. Each holding, therefore, has a meaningful impact on our investment performance.
Our job does not end with the purchase of a security. Ownership involves responsibility. We are active, not passive owners. Devotion Capital Management monitors each holding while promoting good corporate governance and shareholder-friendly initiatives. This reflects our philosophy of being an investor in and owner of a business.
Value investing flies in the face of modern portfolio management theory. It is designed to minimize risk AND maximize return potential. In this way, we work to advance our investors through the preservation and substantial appreciation of client capital over the long-term. The current principals of Devotion Capital Management and our families have a significant portion of our net worth invested alongside our clients.
Henry W. Schacht is the Founder and Chief Investment Officer of Devotion Capital Management, which was established in 2002. He has held the Chartered Financial Analyst designation since 1999. Henry earned an MBA from the University of Chicago Graduate School of Business with concentrations in finance, accounting, and economics in 2002. He graduated from the University of Notre Dame with a degree in finance and a minor in theology in 1995. Henry is a member of the CFA Institute (formerly the Association for Investment Management and Research – AIMR), the Investment Analysts Society of Chicago (IASC), and the National Association of Corporate Directors (NACD).
Henry grew up in the Florida citrus industry in Vero Beach, Florida. The business was founded in 1950 by his grandfather, a serial entrepreneur, who had always nurtured the romantic idea of owning a farm and growing citrus from his earliest days. Growing up in agriculture taught Henry the value of hard work, but perhaps more importantly, incredible lessons about business. He learned the basics of price vs value, the dangers of extrapolating the recent past into the distant future, and the primary importance of cash flow. An early trip to Disney World got Henry thinking about the difference between commodity businesses and a franchise business with pricing power – that some businesses are inherently profitable, while others are at the mercy of forces outside management control. It turns out that growing up in a farming family was a perfect training for a future value investor.
The path to Devotion Capital was paved by the early and kind mentorship of many. Several deserve special mention. Maternal grandmother Jeanette Riel was a successful investor and meticulous bookkeeper, who fired a fascination with all things financial. She also successfully ran a variety of businesses starting at a young age and encouraged Henry’s entrepreneurial bent. Family friend and stockbroker Claude Lee Ives Jr. provided practical guidance in the early years. Henry spent many nights watching Wall Street Week with Louis Rukeyser with his father. This led to a discovery of Warren Buffett and by his early teens, Henry had read The Intelligent Investor and other value investing classics. After college graduation, Henry had the good fortune to meet industry veteran Phil Young whose guidance and support led to an early equity research position. Without these individuals, Devotion Capital would not exist.
Outside of the investing world, Henry enjoys archery, reading, and travel, especially spending time and exploring with his 2 children. He is the owner of Michiana Archery, one of the Midwest’s premier archery facilities. Henry is a USA Archery Level 4 Coach/Trainer and the Head Coach of the University of Notre Dame’s Archery Club. Henry is an Eagle Scout and is involved with Scouting USA at the local level.