Large Cap Value Portfolio

Introduction

Large Cap Value Portfolio Introduction

Grisanti Capital Management’s (“GCM”) belief is that the market is generally efficient and there are limited opportunities that combine superior upside potential with acceptable risk. We look for this infrequent combination in two ways: either identifying securities selling at a discount to their current asset value or at a discount to their future cash flows (discussed in greater in Philosophy and Process).

Our process is bottom-up because we believe each company must possess its own compelling investment thesis. Often during our research we identify investable trends amon several companies in the same sector that combine compelling macro dynamics with equity valuations that are attractive on either cash flow or asset value metrics. These themes usually last for a multi-year period. Examples include:

  • The American Oil Renaissance
  • The American Manufacturing Renaissance
  • Cable, Satellite, & Telcomm Providers
  • The Rebirth of the American Airlines Industry

Since our firm was founded in 1999, GCM has managed a concentrated portfolio of 15 to 25 stocks. We typically reject more than 90% of the potential investments that we research. Our holdings portfolio are predominantly large capitalization (over $10 billion). No one position is to exceed 8% at the time of purchase. Stocks are held for an average of three to four years. Our portfolio is not index-driven and does not mimic benchmarks, which is the primary reason for GCM’s long-term record of outperformance.

 

To learn about our Large Cap Value Portfolio’s performance, email us at info@grisanti.com.

 

Contact Us