Must-know: Key ideas from Blue Ridge Capital’s investment strategy
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About Blue Ridge Capital
Blue Ridge Capital is a New York–based hedge fund founded in 1996 by Tiger Cub John Griffin. The fund generally targets “absolute returns” by investing in and short-selling companies, with a focus on going long. Blue Ridge’s investment thesis is based on fundamental analysis. This hedge fund focuses on companies that have competitive advantages in their industries while shorting those thought to have fundamental problems.
According to hedgefundletters.com, based on Tiger Cubs’ philosophy, Blue Ridge’s investment decisions are based on bottom-up in-depth research of the fundamentals to determine the long-term perspectives of each individual company, with some consideration given to the general prevailing environment. Griffin add his own touch to the long/short strategy by filtering all the generated investment ideas via an exhaustive checklist. Under this checklist method, the industry is judged on some basic factors such as the relative power of stakeholders, barriers of entry, core competencies for success, opportunities, and assessments of these factors by competitors—and also how a high performer can differentiate itself from companies that don’t perform well in a particular market.
Founder John Griffin has an undergraduate degree from the University of Virginia and an MBA from Stanford Graduate School of Business. He launched his investment career as an analyst at Morgan Stanley in the Merchant Banking group. Before setting up Blue Ridge, Griffin was believed to have been a “right-hand man” to Julian Robertson at Tiger Management. Griffin is also an active philanthropist, and he serves on the boards of iMentor (founding chair), the Robin Hood Foundation, and the Robertson Foundation. He was a past board member of the Michael J. Fox Foundation, among other organizations. Griffin is an adjunct professor of finance at Columbia Business School and a visiting professor at the University of Virginia.
For more hedge fund analysis, see Market Realist’s 13-F page.