Dennis Delafield and Vincent Sellechia’s little-known Delafield Fund has beaten 99% of funds in its category over the past five and ten years, and the latest issue of Financial Planning magazine takes a look at how the two managers have fared so well.

The fund allows Delafield and Sellechia to roam the entire market, regardless of market cap or style distinction, Financial Planning’s Ilana Polyak reports. But most often, she says, the fund ends up investing in small- and mid-sized firms, because that is where the biggest mispricings of solid companies occur.

Delafield and Sellechia key on cheap, beaten-down stocks, and “follow up picks with old-fashioned research, which places importance on face-to-face meetings with management, and conversations with competitors and suppliers,” Polyak writes. “We want to find a company that seems to be undervalued, and then understand who they are and why they might change for the better,” Delafield says.

While they don’t make macroeconomic calls, Delafield and Sellechia often end up investing in industrial materials companies. Currently, more than half of the fund is invested in that area, according to Polyak, with Honeywell and Ingersoll-Rand among the fund’s holdings.