The Wall Street Transcript Interviews William Blair’s Jim Golan

 

March 2017


Jim Golan, partner and co-portfolio manager on William Blair’s Large-Cap Growth team, talked with The Wall Street Transcript about the Large Cap Growth strategy, market inefficiencies he seeks to exploit, and U.S. trade policy implications.

In the interview, Golan highlighted that William Blair's Large Cap Growth strategy is a high-conviction, concentrated portfolio that focuses on a long-term investment horizon of three to five years.  Golan believes that “short-term money chasing the market and chasing the latest investment trends” creates opportunities for his team to provide value to clients.

Golan gave several examples of companies in which that strategy currently invests, noting that these companies fall into two categories of market inefficiencies the team seeks to exploit.  The first he calls “traditional quality growth” companies. These structurally advantaged companies are underestimated in terms of durability of growth and long-term earnings power and, therefore, mispriced.

Companies that fall into the second category, “fallen quality growth,” are also structurally advantaged companies, but a short-term issue has reduced the visibility of their potential. “The first reaction is to sell the stock and walk away,” Golan told The Wall Street Transcript. Instead, the team views this as an opportunity, especially if they have high conviction in their investment thesis.

Investors tend to react to the short term.  “We do best by remaining consistent to our strategy;” said Golan, “as macro issues like Brexit and the new administration generally resolve themselves over time.”

That said, Golan urges investors to pay attention to how the new administration’s trade policy unfolds.  For larger multinational companies, the effects could be negative, as they have built significant supply chains across the globe. “It’s still early in the process, and we will have to see how it shakes out,” said Golan.

In the meantime, Golan and team plan to remain focused on picking companies and great stocks.

 

Read Jim Golan’s interview with The WallStreet Transcript