Q4 2017 International and Global Growth Equity Strategies

At the height of this eight year bull market, we are trying to reconcile the notion that the markets and the global economy may be "as good as it gets" with the potential that, as a result of technological change, increased market volatility and the strength of the Chautauqua Capital team, "the best may be yet to come".

For the fourth quarter, and likewise for the first three quarters of 2017, managed portfolios achieved superior returns. The Chautauqua Capital approach is to identify trends and companies that, as a result of their business model advantage, benefit disproportionately from these trends. In some periods the trends evolve more slowly than we had anticipated of the company's ability to translate better business conditions into more rapid profits growth is delayed as they re-invest in their advantage to maximize its potential. In some cases, the fundamentals unfold beautifully but the markets do not seem to care. In the fourth quarter, and for much of 2017, several trends accelerated faster, the companies we invested in realized their expected potential and the markets recognized the enhanced underlying value. We caution that what we experienced in 2017 will not always be possible. We do believe that our approach is the very best way to achieve capital appreciation but optimally, in order to capture the benefit of our skill and approach, investments should be made for a multi-year period.

In the fourth quarter of 2017, the Chautauqua Capital International Growth Composite appreciated 6.13%, outperforming the MSCI ACWI ex-U.S. Index®, which appreciated 5.06%. The Chautauqua Capital Global Growth Composite appreciated 6.85%, outperforming the MSCI ACWI Index®, which appreciated 5.84%.

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