Blue Oceans Wholesale Strategy

The Blue Oceans Capital Wholesale Strategy targets companies with rapidly-growing revenues and scalable-business-models, that have high performance across sustainability and ESG. We recognise that the transition to a more sustainable economy is a global mega-trend that is creating opportunities for companies delivering positive-disruption.

Objective
The Blue Oceans Capital Wholesale Investment Strategy aims to invest in
sustainable companies while achieving annualised portfolio growth in excess of
15% per annum over a 5 year period. 

Methodology

Sustainability
The strategy uses a proprietary research and analysis process that applies both negative and positive screens to identify companies best positioned to benefit from the transition to a more sustainable economy. We apply thresholds relating to fossil-fuel exposure, as well as operations within controversial industries; while also ensuring the portfolio is inline with the Paris Agreement’s target of keeping global temperature increases below 1.5°C.

The details are available in our Sustainable Investment Policy. 

We assess a range of environmental, social and governance (ESG) factors to give us a complete picture of the risks and opportunities surrounding a company. The bottom-up process involves a proprietary qualitative assessment of the company's approach to a broad range of ESG issues. It helps to inform our decision-making process across the phases of screening, stock selection and portfolio construction.

Fundamental Analysis
When looking for new investment possibilities we search for compelling business models first and complete valuations second. This means understanding the business models of 1000’s of companies by manually looking at each one. We build our valuations from an in-depth knowledge of the company and its industry. This approach allows us to identify opportunities not recognised by the market.  

Concentration
The portfolio is concentrated, typically holding less than 15 of the best investment opportunities we are aware of. The depth of our analysis enables a concentrated portfolio and that concentration enables outperformance. 

Long-term Holdings
We are long-term holders of our investments only selling if material changes
occur that threaten the business model of our investment. Short-term market
movements don’t concern us.

Performance Fee 

The Blue Oceans Capital Wholesale Strategy has a performance fee of 12% over a hurdle rate of 10% with a high water mark which is reset every 20 quarters. The performance fee is calculated and paid on a quarterly basis. 

Portfolio Holdings*
 
As of 1st July 2022 the portfolio holdings were; 
 

Adyen 
Alfen 
DLocal 
Doximity

Nu Holdings
Paycom
SolarEdge
The Trade Desk
Upstart