Jackson Square Partners’ culture is characterized and cultivated by a collaborative, flat, team-oriented structure where every individual has a voice that is valued by all firm members. Performance and team-orientation is encouraged and rewarded. The firm’s personnel retention statistics prove Jackson Square Partners (“Jackson Square”) has a culture that is strong and time-tested. The majority of the Investment Team has been together for well over a decade and the team has not experienced any member turnover in 15 years.
Jackson Square is a growth investor but the team is not bound by consensus definitions of growth. Jackson Square believes that attractive returns can be realized by maintaining a concentrated portfolio of companies that have superior business models, strong cash flows and the opportunity to generate consistent, long-term growth of intrinsic business value.
Key Tenets of Jackson Square Partners' Philosophy
Concentration - Portfolios should be constructed with a strong emphasis on the highest-conviction companies in a manager’s coverage universe. This is done with a keen focus on both the risk and the reward of each holding.
Consistent, long-term investment horizon - Jackson Square generally holds companies with steady, consistent business models and end markets, and prefers to hold them for five years or more.
Intrinsic business value focus - While Jackson Square, like other growth investors, invests with the expectation of attractive revenue and earnings growth from the companies it holds, a company’s cash economics – its returns on invested capital and its ability to generate free cash flow*, i.e., its intrinsic business value – is key to Jackson Square’s evaluation.
KEY AREAS OF DIFFERENTIATION
- Jackson Square is benchmark agnostic, holding a concentrated, conviction-weighted portfolio.
- Jackson Square emphasizes growth in intrinsic business value as opposed to more traditional definitions of growth that are often restricted to revenue and reported earnings. Cash generation and return on invested capital are more important to Jackson Square than accounting earnings.
- Jackson Square has a flat team structure with a stable, veteran team which values high levels of accountability and internal peer scrutiny. While members of the team may have portfolio management responsibilities, everyone on the team is first and foremost an analyst.
- Jackson Square’s concentrated portfolio approach limits asset capacity in all strategies, resulting in a performance-driven investment culture.
- Jackson Square is majority owned by employees.