Street Transcript Interviews William Blair’s Jim Golan
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
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