Tradition. Innovation. Results.

Growth & Income Strategy

 

Inception: June 30, 1999

Benchmark: S&P 500 and Barclays Aggregate Bond Index

Who We Are

Patricia D. Journeay, CFA

R. Randall Grace, Jr., CFA

Patricia D. Journeay, CFA

Portfolio Manager & Analyst

Experience: 29 years

 

Ms. Journeay is the portfolio manager for the firm's Growth & Income strategy and an assistant Portfolio Manager on the Growth strategy. She is also lead analyst in the consumer discretionary, software, Internet, aerospace, defense, and consumer staples sectors. Prior to joining Chilton Capital Management, Ms. Journeay served as manager of operations for Criterion Investment Management Co. and Nicholas Applegate.  Ms. Journeay joined Chilton Capital Management in 1998 and is an owner of the firm.

 

Ms. Journeay has a BS from the University of Pittsburgh. She is a CFA charter holder and member of the CFA Institute.

R. Randall Grace, Jr., CFA

Portfolio Manager & Analyst

Experience: 20 years

 

Mr. Grace is the assistant Portfolio Manager for the Growth and Income strategy and is a member of the portfolio management team for the firm's Growth strategy.  He is also the lead analyst responsible for energy, materials, utilities and MLP’s as well as semiconductors and various growth industrials.  In addition, Mr. Grace oversees corporate fixed income research for the firm.  Mr. Grace joined Chilton Capital Management in 1997 and is an owner of the firm.

 

Mr. Grace has a BA from Skidmore College. He is a CFA charter holder and member of the CFA Institute, the CFA Society of Houston, and the National Association of Petroleum Investment Analysts.

Investment Philosophy

 

We believe our Growth & Income investment approach diversifies cash flows from a variety of asset classes with the goal of preserving capital during bear markets and providing the benefits of an equity portfolio during bull markets. The identification of securities across multiple asset classes and multiple capital structures increases the investable opportunity set and assists in balancing portfolio risk with reward.

 

Mitigating portfolio risk and paying reasonable prices for investments are central to our philosophy. We are tax and transaction cost conscious, and strive to be opportunistic across multiple asset classes. The objectives of the strategy are capital preservation, current income with long-term capital appreciation, and creation of portfolios with lower risk compared to traditional all equity portfolios. Equities are diversified across sectors to balance risk. Most equity investments will be made in large capitalization companies with a history of growing earnings and dividends. The goal of the strategy is to have more equity exposure in securities with a dividend yield greater than the S&P 500.

 

We believe dividend-paying stocks are less volatile and tend to better hold their value in a declining market. A properly constructed portfolio of stocks combined with corporate fixed income securities, preferred stocks, US government securities, and cash, should mitigate risk, preserve capital and generate current income and capital growth.

 

Investment Process

 

The research and portfolio management team is comprised of individuals having industry and sector specific knowledge. Analyst-specific expertise within industries and companies, combined with an emphasis on critical thinking, collegial debate and sharing of knowledge, drives idea generation. The process is rooted in traditional fundamental security analysis. The team seeks companies with strong balance sheets, free cash flow, generation, earnings and revenue growth, pricing power, and sustainable competitive advantage.

 

Investing in any asset class is valuation sensitive focusing on factors such as credit quality and outlook, price/earnings, price/book and price/free cash flow. Qualitative assessments are also considered and include quality of company management, health of customers, competitive forces, market opportunity, and potential regulatory impact.

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