Donald Smith & Co

Name

Donald Smith & Co

Legal name

Donald Smith & Co., Inc.

Website

https://donaldsmithandco.com

Company type

Private

Founded year

1980

Operating status

Operating

Headcount range

1–10 employees

Ownership category

akta.pro rank

Headquarters

HQ city

New York

HQ country

United States

HQ region

North America

Offices1 record

Markets served

GTM type

B2B

Offering type

Services

Cost components

Personnel, Operations, Technology or R&D, Marketing or Sales, Infrastructure, Others

Revenue model

1. Separately Managed Account Fees: The firm generates revenue through management fees on separately managed accounts across six composites: All Cap, Large, Mid, Small, Micro, and Global Value. These are institutional investment mandates managed within the same time-tested investment framework.

Go-to-market motion1 record

Distribution channels1 record

Marketing channels2 records

Core offering

Donald Smith & Co. provides deep value equity investment management to institutional clients through six separately managed account composites (All Cap, Large Cap Concentrated, Mid Cap, Small Cap, Micro Cap, and Global Value). The firm applies a proprietary quantitative screen for stocks in the lowest decile of price-to-tangible-book-value, followed by intensive fundamental research to build concentrated portfolios of companies with significant underappreciated earnings potential over a 2-4 year horizon.

Product overview

Donald Smith & Co. is an investment management firm offering six separately managed account composites managed within a unified deep value equity investing framework: All Cap Value Equity, Large Cap Concentrated Value Equity, Mid Cap Value Equity, Small Cap Value Equity, Micro Cap Value Equity, and Global Value Equity. All six composites are managed by the same team using the same disciplined, process-driven approach of investing in stocks trading in the lowest decile of price-to-tangible book value ratios. The firm employs a bottom-up stock selection process that begins with quantitative screening and is followed by intensive fundamental research to identify companies with significant underappreciated earnings potential over the next 2-4 years.

Differentiator

Problem solved

Functional benefit

Products and services

• All Cap Value Equity Composite
• Large Cap Concentrated Value Equity Composite
• Mid Cap Value Equity Composite
• Small Cap Value Equity Composite
• Micro Cap Value Equity Composite
• Global Value Equity Composite

Quantifiable outcome

• 16.8% annualized return (equity only) vs 12.1% S&P 500 from 1980-2024
• +3 more outcomes

Segments1 record

Ideal customer profiles1 record

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature3 records

Scale indicators6 records

Recent moves7 records

Expansion highlights4 records

Direct peers

• Pzena Investment Management: Classic deep value equity manager focused on the cheapest decile of the global equity universe. Donald Smith & Co. and Pzena both pursue fundamentally-driven, contrarian value strategies for institutional clients, with overlapping product structures and target universes.
• Longleaf Partners: Concentrated, patient value manager running a 'business-like ownership' approach across small, mid and global value composites. Highly comparable to DS&Co in delivering concentrated best-ideas portfolios to institutional clients using a value bias.
• Tweedy, Browne Company: Boutique deep value manager with global value composites running a bottom-up, balance-sheet-focused approach. Closely comparable philosophy and product set to DS&Co's deep value framework for institutional separately managed accounts.
• Heartland Advisors: Mid- and small-cap U.S. value manager founded in the 1980s using a fundamental, balance-sheet-driven approach. Operates in the same sub-segment of the value universe as DS&Co's small and mid-cap composites.
• Davis Advisors: Multi-generational, employee-controlled equity manager running large-, mid- and global value strategies, often with concentrated positions. Similar structure to DS&Co with comparable separately managed account offerings for institutional clients.
• Oakmark Funds (Harris Associates): Concentrated, long-only value manager running U.S. and international value composites. Similar concentrated, contrarian approach and institutional client base to DS&Co, though with broader product set.
• Ariel Investments: Mid/small-cap deep value manager founded in 1983, employee-owned, run concentrated value portfolios for institutional clients. Highly analogous to DS&Co in vintage, ownership structure and target universe.

Broad incumbents

• GAMCO Investors: Larger, established fundamental value manager running multiple small-, mid- and large-cap value strategies alongside a broader alternative and closed-end fund business. Overlaps with DS&Co in value equity but operates on a much wider scale.
• LSV Asset Management: Large quantitative value manager running global, U.S. and international value strategies for institutional clients. Overlaps with DS&Co's All Cap and Global Value composites but uses a systematic rather than fundamental approach.

Others

• Brandywine Global (Franklin Templeton): Multi-affiliate value manager that competes with DS&Co for institutional value equity mandates as part of a broader fixed-income and equity platform. Not a direct competitor on style but competes in the same institutional consultant selection process.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat5 records

Key risks6 records

Key highlights7 records

Customer concentration

Revenue estimate

Valuation estimate

Number of profiles

Profiles11 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Donald Smith & Co