Grand-Jean Capital Management – Overview

Grand-Jean Capital Management, Inc. (the “Firm”) provides equity portfolio management primarily to individuals. Founder and President Steven Grand-Jean spent a 20-year career in investment banking with Salomon Brothers and Montgomery Securities, where he developed insights and management relationships across a wide variety of industries. The officers of the firm invest substantially all of their liquid assets in the same securities as their clients.

Year Founded: 1990

Fee Structure (Payable Quarterly):

$1 Million to $5 Million 1.25% Annual Fee on Assets
$5 Million to $10 Million 1.00% Annual Fee on Assets
Over $10 Million 0.75% Annual  Fee on Assets

Incentive Fee: None

Liquidity: Clients can request to terminate their investment advisory agreement and liquidate all positions with one business day’s notice.

Transparency: Full transparency on positions held and trading activity.

Account Structure: Each account is managed individually, but accounts generally hold the same securities in more or less the same percentages.

Investment Philosophy

We are domestic equity investors with a bias toward long-term investing. We seek superior returns without undue risk to capital. Our focus is on undervalued companies with strong management, strong free cash flow, and a shareholder orientation. Independent research, personal relationships with management teams and investment discipline have allowed us to generate superior investment results over the past decade.

Investment Strategy: Primarily U.S. equities. Long only. No leverage or derivatives

Investment Objective: Long-term growth of capital and capital preservation.

Diversification: Generally hold 15 to 25 stocks per portfolio with no more than a 5% concentration in any one security. These amounts may vary depending on the circumstances.

Research: Independent research focused on bottom-up company analysis.

Our targeted investments are companies with the following attributes:

  • Operating in industries that we actively follow and believe we understand well; for the most part, industries that we have been involved with throughout our careers.
  • Sustainable, industry-leading market positions generating significant cash flow.
  • Restructurings, reorganizations or other turnaround situations where we know the management team, understand the industry, and feel the market is incorrectly pricing the opportunity.

Investment Process

Once we have identified a promising company, we tend to follow the company’s progress for a time before investing, and then invest in stages. Before committing capital we put each of our potential investments through a thorough review process that includes analysis of the following:

  • Management
  • Valuation, both relative and absolute
  • Accounting practices
  • Economic, business and product cycles
  • Competitive position
  • Business model and projected financial performance
  • Trends in industry, subsector and comparable companies
  • Corporate governance

Services

Each client portfolio is managed separately. This allows us the flexibility to somewhat tailor each individual’s portfolio and to be as tax efficient as market conditions warrant. We have discretionary trading authority over accounts. Clients receive monthly brokerage statements and trade confirmations, as well as a quarterly performance review that we prepare. We also provide an unaudited realized gains and losses report at year end.

Management terms and conditions are set forth in our Investment Advisory Agreement, a copy of which is available upon request.

People

INVESTMENT PROFESSIONALS

Steven Grand-Jean, President

Steven practiced corporate and securities law in Chicago from 1967-69. He then joined Salomon Brothers as an associate in investment banking, becoming a general partner in 1979 and a managing director in 1981. He specialized in mergers and debt and equity capital raising. He left Salomon Brothers and joined Montgomery Securities in 1988 where he served as a general partner in charge of mergers and acquisitions. Steven has a BA from Stanford University and an LLB from Harvard Law School.

Thomas Lloyd-Butler, Senior Vice President

Tom has 31 years of experience as a portfolio manager and research analyst in the investment business.  He began his career as an equity analyst at Morgan Guaranty Trust Co., from 1982-1986 where he completed the bank’s management program.  He joined Montgomery Securities in 1986 as a research analyst following technology and industrials.  Subsequent to that, Tom was a partner at Gruber & McBaine from 1992-2002, a $1.5 billion hedge fund where he was one of three portfolio managers.  In 2002, Tom started his own firm, TLB Capital Management, where he was a portfolio manager until 2010.  Tom has a BA from the University of California at Berkeley.

Timothy J. Humphries, Vice President

OPERATIONS/CLIENT SERVICES PROFESSIONALS

Crystal Smolinski
Chief Compliance Officer, Director Of Operations

Mieke Vandewalle
Database Manager

Tanisia Greer
Administrative Assistant

Contact Us

You may reach our company by:

Address:
Grand-Jean Capital Management
One Market Plaza, Steuart Tower
Suite 1440
San Francisco, CA 94105

Phone: (415) 512-5430

You may also reach us through our contact form below.
We do not accept solicitation messages. Thank you.