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 2017 International and Global Growth Equity Strategies

The first quarter saw global markets rally. Economic growth forecasts for most regions, both developed and emerging, were revised higher, while the market internals (style and sector dominance) demonstrated a broad reversal of driving factors that were present in the fourth quarter

In this environment, the Chautauqua Capital International Growth Equity composite appreciated 10.76%, outperforming the MSCI ACWI ex-U.S. Index®, which appreciated 7.98%, and outperforming the MSCI EAFE Index®, which appreciated 7.39%. The Chautauqua Capital Global Growth Equity composite appreciated 10.94%, outperforming the MSCI ACWI Index®, which appreciated 7.05%.

For the MSCI ACWI ex-U.S. Index®, growth style outperformed value style. Within emerging markets, growth style also outperformed value style. Large capitalization stocks outperformed small capitalization stocks in both the developed and emerging market sub-indices. This was in sharp contrast to the fourth quarter of 2016, when value styles and small capitalization stocks prevailed. For the MSCI EAFE Index®, growth style outperformed value style, and large capitalization stocks outperformed small capitalization stocks. This was in sharp contrast to the fourth quarter of 2016 when value styles and small capitalization stocks prevailed.

Read Full International and Global Commentary