Industry Investment management Products Hedge funds Founded 1996 Type Privately held company | Founder John Griffin Headquarters New York City Total assets 5.3 billion USD | |
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100 top traders 67 season2 blue ridge capital
Blue Ridge Capital is an American hedge fund founded in 1996 by "Tiger Cub" John Griffin, a protege of Julian Robertson, which invests globally.
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Background
The founder of Blue Ridge Capital, John Griffin, is believed to have been a "right-hand man" to the billionaire manager Robertson. Blue Ridge Capital generally targets "absolute returns" by investing in and short-selling companies, with a focus on "going long" (i.e. buying the stock of companies rather than selling it short.) Blue Ridge's investment thesis is based on fundamental analysis, and focuses on companies that have competitive advantages in their industries, while shorting those thought to have "fundamental problems." The principal, Griffin, is highly compensated and after a 65% return on the fund in 2007 he reportedly made $625 million. That was their best year, however: after surviving the financial crisis with a loss of only 8%, the fund has since underperformed the S&P 500.
Investment process
Blue Ridge has a lengthy process for vetting both long and short investments. Generally, they are focused on individual companies rather than a sector; a "checklist methodology" is used to identify good performers in a given category. Industry outlook is also taken into account in the investment process. Key factors in the consideration of industry-relevant matters are the power of stakeholders, barriers to market entries, ingredients of success, and business development opportunities. Analysts at Blue Ridge also need to address the business model, the management, the financial structure, and the risks of the company they're considering; a detailed time line is also created, which attempts to pin down catalysts for a changed valuation in the share price. A prospective investment must also be evaluated for the presence of questionable accounting practices.
Joint ventures
In 2008, Blue Ridge Capital's division in China started a joint venture with Equity International investing in Xinyuan Real Estate. In December 2007, Xinyuan Real Estate went public on the NYSE as an ADR ticker symbol XIN. It traded slightly above $15 per share but settled between $1–$3.
Political activities
Blue Ridge donated $100,000 to Restore Our Future, the Super PAC supporting Mitt Romney's presidential candidacy.