Founded in 1977, GMO is a global investment manager committed to delivering superior performance and advice to their clients. They partner with a broad range of sophisticated investors around the world, including leading endowments, foundations, corporate and public retirement plans, sovereign wealth funds, financial intermediaries, and philanthropic family offices. GMO's sole business is investment management, and they are privately owned, which enables their investors to maintain a singular focus on achieving outstanding long-term client outcomes.
GMO investment teams are grounded in a common philosophical belief that a long-term, valuation-based, high-conviction approach will maximize risk-adjusted returns. Each of GMO's teams has focused expertise and employs its own active investment process best suited to generating above benchmark performance in multi-asset class, equity, fixed income, and alternative strategies. Experienced GMO investors use both innovative quantitative tools and deep fundamental analysis in managing portfolios.
Legendary investor Jeremy Grantham is one of GMO's co-founders, current Chairman of the GMO Board of Directors, and GMO's Long-Term Investment Strategist. He has long been known for his expertise in asset allocation and market bubbles. Also widely recognized as a leading global advocate for climate change mitigation efforts and investment, he has been featured on Barron's list of "The 20 Most Influential People in ESG Investing."
The GMO Quality Strategy, with a 21-year track record and nearly USD30 billion in assets, is a global core equity portfolio that invests in companies meeting GMO's definition of high quality – companies with high and stable profitability, low debt levels, and competitive moats – a framework first developed by Jeremy Grantham and colleagues in the 1980s, positioning GMO as a pioneer in quality investing. Three key differentiators – and strengths – of the GMO Quality Strategy include:
- Valuation Discipline: The investment team maintains a strong focus on valuation, rebalancing the portfolio when necessary to enhance long-term returns. This discipline has been a key source of alpha over time.
- Blended Quantitative and Fundamental Approach: A proprietary quantitative screen defines the quality universe, while fundamental research identifies the most compelling stock opportunities within it.
- Downside Protection: The Strategy's emphasis on quality and valuation has helped mitigate losses during market downturns, as high-quality businesses tend to be more resilient than the broader market.
