Quality Growth Boutique

Global equity specialists since 1984

Active, high-conviction investors

Our goal is to deliver to our clients long-term performance driven by stable, high-quality underlying earnings growth, paid for at sensible prices. To achieve this, we seek to invest in companies with market leading positions and powerful franchises. Our investment team has consistently followed this approach for more than 30 years.

In making our investment decisions, we undertake deep, company-by-company research that enables us to bring a clarity of understanding to the long-term market opportunity, susceptibility to competition, management strength and exposure to ESG risk. This is vital to maintain conviction through the bumps and bad headlines over time. Our return goal is built on providing absolute returns that beat the benchmark while exposing our investors to less risk through the economic cycle.

We actively manage our portfolios and are benchmark-agnostic.

As a fiduciary, we put our investors' interests above our own, making every effort to be a partner who understands our clients' needs and objectives.

1984 $31.9bn New York 74
 

Quality Growth Businesses

Seek to identify highly-profitable companies with consistent earnings growth, stable franchises and solid fundamentals. Global growth companies that perform well during economic expansions and tend to be resilient in difficult market environments.

 

ESG Integrated

Sustainability is a core strength required by long-term investors. Management choices towards the company’s stakeholders and the environment can have significant impact on a business. We engage managements on ESG issues.

 

Independent View

As bottom-up investors, a benchmark does not influence where we invest – but we are cognizant of how our portfolios compare to the broader universe.

 

Long-term Focus

Aim to compound earnings at a higher rate than the market over a full market cycle, with lower volatility.

 

Sensible Price

A conservative measure of value, with a margin of safety built into the earnings forecast.

 

Downside Protection

We strive to position our portfolios to participate in rising markets, but also protect capital in difficult market conditions. We believe that minimizing losses during market downturns has been the key to compounding client returns.

Our people

Our research team is skilled and experienced. Passionate about bottom-up, fundamental research, our team thinks and invests like business owners. This means they naturally deviate from consensus views and benchmark weights.

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Our long team tenure is particularly valuable given our approach – we build concentrated portfolios with low turnover from year to year. Having worked together, on average, for more than a decade, our team develops a deep understanding of the businesses they cover over time. And our investigative analysts dig deeper to help quantify risk and encourage debate.

Our Management Team

Our management team, together with the Board of Directors, develops the company's business strategy.

Our Portfolio Managers

First and foremost, our portfolio managers conduct bottom-up, intensive stock research. They collaborate with research analysts and traders on valuations and sizing of positions. Ultimately, portfolio managers make all final decisions regarding purchases and sales.

Our Client Portfolio Managers

Experts on both the markets and Vontobel's strategies, Client Portfolio Managers (CPMs) serve as the client's window to portfolio managers and research analysts. They are responsible for communicating the firm’s philosophy, process, performance, portfolio positioning and risk management.

Our Research Analysts

Research analysts generate the best investment ideas in their individual sectors across the globe, by analyzing, among other metrics, a company's past performance, underlying business model, accounting issues, management track record, and ability to sustain earnings growth.

Our Traders

Our dedicated trading desk spends 100% of their time handling the execution and implementation of our portfolio managers' buy/sell decisions. The trading desk is located in New York City, and runs 24 hours a day to encompass all global markets and address all trading requirements in real time.

Our philosophy

We believe that the earnings growth of an underlying business will ultimately be reflected in its stock price. Since genuine high quality businesses are scarce, our research team focuses on identifying those names that we believe can sustain superior earnings growth longer and are underappreciated by the markets. We believe that we can take advantage of this long-tail growth effect and add value for our clients by carefully constructing a portfolio of these types of businesses.

This belief system drives our bottom-up approach. Without the constraint of a benchmark, we start with a universe of investable names that meet our quality criteria. After rigorous research, we then consider the quality companies that, in our opinion, trade at attractive valuations for inclusion into our portfolios. This is a select group of companies, and, as a result, our portfolios are quite concentrated. By adhering to this investment approach, we seek to protect our clients’ assets in declining markets, while growing their assets in rising markets, thus driving superior long-term risk-adjusted returns.

Our process

Our portfolios are built from the bottom-up, company by company. We consistently apply the same disciplined approach across all strategies.

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“At Vontobel, our primary focus has always been on absolute risk. Our risk management approach is embedded in our investment process and is based on a common sense view that risk primarily lies in the underlying businesses in which we invest. We further control risk by meaningfully diversifying the earnings streams of our holdings.”

Igor Krutov, Director of Research

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Insights

Quality Growth Boutique
2021-02-25_MU_us-tech_teaser
Market Update

What’s justified and what’s not in the hype over US technology stocks

While COVID has been a key source of disruption across multiple facets of our lives, the virus-induced effects have served a useful purpose by accelerating some important business trends that were already underway. We can all agree data proliferation and the continued digitization of the world certainly are not slowing. What's less clear is which companies will benefit.

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Quality Growth Boutique
2021-02-24_VP_qg-china-a_teaser
Viewpoint

A Prudent Approach to Navigating Equity Markets in China

Chinese equities can offer an exciting and dynamic opportunity, but investors must navigate a complex regulatory environment and quickly changing competitive dynamics. Our research team sheds light on the outlook for e-commerce giant Alibaba, how to approach the A-shares universe and pressing issues investors face in China today.

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Quality Growth Boutique
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Market Update

Will rising anti-monopoly regulations impair the growth of the Chinese internet giants?

Alibaba had hoped to position Ant with a greater emphasis on the “tech” part of the business and the margins and returns that usually accompany that model, but now it clearly could be a much less profitable, albeit still very large and successful, financial holding company. Portfolio manager Brian Bandsma breaks down what increased regulatory scrutiny means for some of China’s large internet companies.

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Quality Growth Boutique
2021-02-11_VP_hey-you-never-know_teaser
Viewpoint

"Hey, You Never Know" – A Lottery Ticket or an Investment?

Investors could try their luck like the NY State Lotto ad “Hey, You Never Know” suggests. But successful investing over time is not a game of luck. It requires discipline and skill. “Lottery Ticket” stocks – fast growing yet unprofitable and highly valued companies – and other signs of market exuberance amid rising economic uncertainty warrant attention.

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Quality Growth Boutique
2021-01-20_QG_a-change-in-administration-in-the-US-typically_teaser
Market Update

A change in administration in the US typically has little impact on long-term market returns

The market craves stability and transparency. As an efficient auction mechanism, it relies on visibility to price stocks and economic activity. Typically, the market—and people in general—do not like change, but this time, as we stand at the precipice of a tremendous change, what we are seeing is actually a potential return to real stability, normality and transparency.

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