Jackson Square Partners

Philosophy

Jackson Square Partners believes that superior risk-adjusted returns can be achieved by investing in concentrated, conviction-weighted portfolios of companies that have steady, stable business models and opportunities to generate consistent, long-term growth of intrinsic business value.This tenet drives the team’s analysis of the risk/reward profile of every company they consider for investment.

When evaluating a company, they emphasize its intrinsic business value, meaning its returns on invested capital and its ability to generate free cash flow. They invest behind positive fundamental change and believe the companies they select will have a clear and sustainable competitive advantage, unique secular opportunities, and an exceptional management team, dedicated to creating shareholder value. Jackson Square Partners looks to create differentiated portfolios with exposure to both secular and idiosyncratic growth drivers. The team takes a consultative approach with company management teams, engaging on key value drivers with receptive portfolio companies.

Approach

Because the Jackson Square Partners investment team members are generalists, they are charged with finding the most attractive companies in the marketplace, irrespective of sector, industry, or geography. Idea generation is organic, rather than filter-driven, often originating from a change or catalyst within a company or sector. The team’s financial rigor is focused on identifying the key metrics for each business model and the underlying levers that will drive future performance for each company.

Company-specific research and portfolio construction considerations for each of Jackson Square’s investment strategies are discussed regularly with the entire investment team. Ideas are presented to the group for vetting and deliberation, a vibrant example of the firm’s ‘culture of debate.’ Their portfolios are built to be benchmark-agnostic, with weightings determined by a careful assessment of risk and reward.