Chautauqua Global Growth Strategy

OVERVIEW

The Chautauqua Global Growth Strategy invests in equity securities of both U.S. and non-U.S. companies with large market capitalizations. The strategy will normally be diversified among at least three different countries, including the United States. The strategy invests primarily in developed markets but may invest in emerging and less developed markets. The portfolio contains high-quality companies that employ better governance and disclosure, more conservative accounting, less financial leverage and “best-in-class” management. This reduces the risk of negative surprises and mitigates the risk of loss, which is a primary concern. In addition to generating high risk-adjusted returns, the approach creates upside market participation and downside protection.

Portfolio Construction

  • Concentrated portfolio of generally 35–45 stocks
  • Positions are typically 1–6% at the time of purchase 
  • Market caps in excess of $5 billion at the time of purchase 
  • Sector weights limited to 50% of portfolio 
TEAM

For more information, contact David Lubchenco or the Intermediary Specialist in your region.

COMMENTARY

Q1 2018 International and Global Growth Equity Strategies

Headwinds and tailwinds can result in choppy waters. In his initial Congressional testimony, incoming Federal Reserve Chairman Jerome Powell spoke of headwinds becoming tailwinds and vice versa. We are not sure that we agree with his assessment of which is which, but we do see policy headwinds and technology-driven tailwinds. So while this is an extraordinary time for advantaged companies to produce wealth for shareholders, policy missteps, power grabs and the removal of monetary accommodation are a counter-weight. With this as a backdrop, while the first quarter was a bumpy ride, we were able to outperform. 

In the first quarter of 2018, the Chautauqua Capital International Growth Equity composite appreciated 1.90%. This compared favorably to the MSCI ACWI ex-U.S. Index®, which declined 1.08%, and the MSCI EAFE Index®, which declined 1.41%. This quarterly outperformance continues the same rend from 2017. The Chautauqua Capital Global Growth Equity composite appreciated 1.34%. This compared favorably to the MSCI ACWI Index®, which declined 0.84%, and continues the trend of outperformance from 2017.

Read Full International and Global Commentary

PERFORMANCE

Performance*

Annualized Returns (%)

 3-MonthYTD1-Year3-Year5-Year10-YearSince InceptionInception Date
Chautauqua Global Growth (gross) 1.34 1.34 26.95 15.18 14.37 10.14 9.76 1/1/07
Chautauqua Global Growth (net) 1.17 1.17 25.73 14.37 13.65 9.71 9.38 1/1/07
MSCI ACWI GD -0.84 -0.84 15.44 8.71 9.79 6.15 5.62
Excess Return (net) 2.01 2.01 10.29 5.66 3.86 3.56 3.76


Annual Total Returns (%)

20172016201520142013201220112010200920082007
Chautauqua Global Growth (gross) 38.97 2.24 9.64 8.24 19.44 15.40 -8.67 22.62 70.29 -49.38 25.32
MSCI ACWI GD 24.62 8.49 -1.84 4.71 23.44 16.80 -6.86 13.21 35.41 -41.85 12.18

*Data as of 3/31/18