Tradition. Innovation. Results.

Growth Equity Strategy

 

Inception: March 31, 1996

Benchmark: Russell 1000® Growth Index

Who We Are

Patricia D. Journeay, CFA

R. Randall Grace, Jr., CFA

Patricia D. Journeay, CFA

Portfolio Manager & Analyst

Experience: 27 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: 18 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 and Context

 

Key differentiators for our Growth Equity strategy include the following tenets of our process:  (1) Experience: March 2015 marks our 20th year managing Growth Equity mandates,  (2) prioritizing early identification of change occurring at any one company or industry level, (3) critical thought: utilizing our own internal classification methodology (Established Growth, Emerging Growth, Special)  to catalogue each portfolio holding according to our analysts’ assessment of the individual company’s position within its own life cycle, and (4) within reason, an agnostic approach to any one company’s market capitalization: minimum market capitalization for inclusion in the strategy is typically at least $2 billion.  Market capitalization is not a factor in determining our classification of portfolio holdings.

 

As growth stock investors, we are typically benchmarked against the Russell 1000® Growth Index.

 

Portfolio Construction

 

Companies irrespective of their market capitalization are classified into one of three categories-–Emerging Growth, Established Growth, or Special Growth.

 

• Emerging Growth: Companies usually have more than five years operating history, a leadership position in a nascent technology or industry, and may have limited Wall Street coverage. The historical exposure to this category has ranged from 5% to 18%

 

• Established Growth: Companies have at least ten years of revenue history, proven management teams/processes, and may include a competitive advantage over its peer group. The historical exposure to this category has ranged from 63% to 85%

 

• Special Growth: Companies are typically established companies that are reinventing themselves and their recent history may not reflect future opportunity. The historical exposure to this category has ranged from 0% to 16%

 

Investment Team

 

Our Growth Equity research and portfolio management team is comprised of four individuals each having assigned sector industry and company coverage. Analyst-specific expertise within industries and companies, combined with an emphasis on primary research, critical thought, collegial debate, and sharing of knowledge drives idea generation.

 

Investment Process

 

Our process, rooted in traditional fundamental securities analysis, seeks to identify companies with growing earnings and revenues, pricing power, and, in our estimation, sustainable competitive advantages. We are valuation-sensitive investors focusing on factors such as Price/Earnings, PEG, Price/Book, and Price/Free Cash Flow. Additionally, qualitative factors are considered, including strength of company management, health of customers, competitive forces, market opportunity, and potential regulatory impact.

 

Strategy Availability

 

The strategy is available to investors through separately managed account and unified managed account structures.

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