Chautauqua International Growth Strategy


The Chautauqua International Growth Strategy invests in equity securities of non-U.S. companies with large market capitalizations. The strategy will normally be diversified among at least three countries. 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 25–35 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

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


Q4 2017 International and Global Growth Equity Strategies

At the height of this eight year bull market, we are trying to reconcile the notion that the markets and the global economy may be "as good as it gets" with the potential that, as a result of technological change, increased market volatility and the strength of the Chautauqua Capital team, "the best may be yet to come".

For the fourth quarter, and likewise for the first three quarters of 2017, managed portfolios achieved superior returns. The Chautauqua Capital approach is to identify trends and companies that, as a result of their business model advantage, benefit disproportionately from these trends. In some periods the trends evolve more slowly than we had anticipated of the company's ability to translate better business conditions into more rapid profits growth is delayed as they re-invest in their advantage to maximize its potential. In some cases, the fundamentals unfold beautifully but the markets do not seem to care. In the fourth quarter, and for much of 2017, several trends accelerated faster, the companies we invested in realized their expected potential and the markets recognized the enhanced underlying value. We caution that what we experienced in 2017 will not always be possible. We do believe that our approach is the very best way to achieve capital appreciation but optimally, in order to capture the benefit of our skill and approach, investments should be made for a multi-year period.

In the fourth quarter of 2017, the Chautauqua Capital International Growth Composite appreciated 6.13%, outperforming the MSCI ACWI ex-U.S. Index®, which appreciated 5.06%. The Chautauqua Capital Global Growth Composite appreciated 6.85%, outperforming the MSCI ACWI Index®, which appreciated 5.84%.

Read Full International and Global Commentary


Annualized Returns (%)

 3-MonthYTD1-Year3-Year5-Year10-YearSince InceptionInception Date
Chautauqua International Growth (gross) 6.13 37.04 37.04 12.89 10.50 4.92 8.70 1/1/06
Chautauqua International Growth (net) 6.07 36.62 36.62 12.45 10.09 4.64 8.47 1/1/06
MSCI ACWI ex-U.S. GD 5.06 27.77 27.77 8.33 7.28 2.31 5.36
Excess Return (net) 1.01 8.85 8.85 4.12 2.81 2.33 3.08

Annual Total Returns (%)

Chautauqua International Growth (gross) 37.04 -0.09 5.11 0.01 14.49 12.38 -9.85 1.52 63.39 -50.03 29.21
MSCI ACWI ex-U.S. GD 27.77 5.01 -5.25 -3.44 15.78 17.39 -13.33 11.60 42.14 -45.24 17.12

*Data as of 12/31/17