David C. Muccia
Managing Director, Portfolio Manager, Research Analyst
Years at First
David Muccia is a Managing Director, Portfolio Manager, and Research Analyst with more than 15 years of investment research experience. He works with his brother, Timothy Muccia.
Prior to joining First Manhattan Co. in 2007, David was a Senior Analyst at both Pirate Capital—where he evaluated and recommended concentrated equity investments—and at FrontPoint Partners—where he focused on convertible arbitrage. Before that, he was a Senior Associate at Fleet Bank, analyzing high-yield bond investments in the Restaurant and Supermarket sectors.
David serves on the Board of Directors of the McCaddin McQuirk Foundation. He holds an MBA from the School of Business at Babson College and a BSFS from Georgetown University's School of Foreign Service.
Portfolio construction and management
David’s primary goal is to compound returns over a long period of time and in a tax-efficient manner. To meet that goal, he looks to invest in companies with proven management teams that are explicitly aligned with shareholders’ interests, dominant market positions, and have strong balance sheets, sustainable margins, and the ability to generate free cash flow.
David spends a significant amount of time meeting with management teams in order to understand their capital allocation strategy and how returns on invested capital will create value through earnings and cash flow growth over time. His accounts typically are:
- Constructed to meet each client’s specific risk profile and needs. To that end, cash is not typically fully invested on Day 1, but rather over time as opportunities arise.
- Designed for a long-term investment horizon. David seeks to identify companies that he can own for several years—which typically show high returns on invested capital, generate strong free cash flow, and have low fixed-rate, long-term debt.
- Diversified and stable, with investments in 25 – 30 companies. Historically, turnover has been low, at approximately 20% – 25% per year.