Blue Chip Equity
Investing in high quality companies that are managed by owner-operators. The process and people are the same as our MidCap strategy, but they're applied to an expanded opportunity set that includes larger companies.
We launched our Blue Chip Equity strategy in 2012 after noticing a trend in our MidCap strategy – many of our successful MidCap investments eventually “graduated” from our universe. We still thought highly of these companies – great businesses, talented management, trading at a discount to intrinsic value – but over time we would let them go as they grew further away from our MidCap mandate.
With Blue Chip, we no longer have to sell for market cap reasons – our market cap “lid” has effectively been taken off. The people and process are the same, but we now have an expanded opportunity set that includes large-cap companies. As always, our focus is on investing in companies that we believe possess sustainable competitive advantages and owner-operator management teams, while keeping a constant focus on valuation and risk reduction.
Please see the link below for additional information.