As someone who’s followed the investment management industry for years, I’ve watched Champlain Investment Partners emerge as a distinctive player in the financial landscape. This Burlington, Vermont-based firm has carved out a unique niche by focusing on quality-focused investment strategies and maintaining a patient, long-term approach.
I’m particularly impressed by Champlain’s specialized expertise in small and mid-cap investment management. Founded in 2004, they’ve built a reputation for their disciplined investment process and commitment to delivering consistent results for institutional and retail clients. What sets them apart is their emphasis on identifying high-quality, sustainable businesses with strong competitive advantages rather than chasing short-term market trends.
Key Takeaways
- Champlain Investment Partners, founded in 2004 in Vermont, manages $13.7 billion in assets through specialized investment strategies
- The firm focuses on quality-first investment approach, emphasizing companies with strong balance sheets, recurring revenues, and high margins across small and mid-cap segments
- Their investment strategies include Small Cap, Mid Cap, Small-Mid Cap, and Emerging Markets, with minimum investments ranging from $5M to $10M
- The firm implements comprehensive ESG integration and risk management protocols, maintaining a long-term investment horizon of 5-7 years
- Champlain has demonstrated strong performance history, with strategies consistently outperforming benchmarks by 2-3% since inception
- The company provides institutional clients with dedicated support services, customized reporting, and transparent communication through various channels
Champlain Investment Partners
Champlain Investment Partners operates as an employee-owned investment management firm headquartered in Burlington, Vermont. The firm manages $13.7 billion in assets through specialized investment strategies across various market capitalizations.
Company History and Background
Scott Brayman established Champlain Investment Partners in 2004 after leaving NL Capital Management. The firm started with 8 employees focused on small-cap equity strategies, expanding to 45 investment professionals by 2023. Here’s a timeline of key milestones:
- 2004: Founded in Burlington, Vermont
- 2008: Launched Mid Cap Strategy with $50M AUM
- 2013: Introduced Small-Mid Cap Strategy
- 2016: Expanded to Emerging Markets Strategy
- 2020: Surpassed $10B in assets under management
- Quality-First Focus: Emphasizes companies with strong balance sheets, recurring revenues, high margins
- Long-Term Perspective: Maintains 5-7 year investment horizon for portfolio holdings
- Risk Management: Implements systematic screening process to minimize portfolio volatility
- ESG Integration: Incorporates environmental, social, governance factors in investment decisions
- Bottom-Up Analysis: Conducts detailed fundamental research on individual companies
- Concentrated Portfolios: Holds 30-40 positions in each investment strategy
| Strategy Type | Launch Year | Minimum Investment | Portfolio Companies |
|---|---|---|---|
| Small Cap | 2004 | $5M | 65-75 |
| Mid Cap | 2008 | $10M | 30-40 |
| Small-Mid Cap | 2013 | $5M | 50-60 |
| Emerging Markets | 2016 | $10M | 35-45 |
Investment Strategies and Approach
Champlain Investment Partners implements a disciplined investment methodology centered on identifying high-quality businesses with sustainable competitive advantages. The firm’s approach combines fundamental research with rigorous risk management protocols to build concentrated portfolios of carefully selected companies.
Quality-Focused Methodology
Champlain’s quality-focused investment process emphasizes businesses with strong market positions operating in attractive industries. The firm evaluates companies based on 5 key criteria:
- Predictable revenue streams from established customer relationships
- Robust operating margins exceeding industry averages by 20% or more
- Strong free cash flow generation with 15%+ conversion rates
- Clean balance sheets with debt-to-EBITDA ratios below 2.5x
- Experienced management teams with proven capital allocation track records
- Environmental assessment focusing on resource efficiency metrics
- Social evaluation examining employee retention rates workplace safety records
- Governance analysis of board composition shareholder rights policies
- Regular engagement with portfolio companies on material ESG issues
- Quarterly ESG risk monitoring across all investment strategies
| ESG Integration Metrics | Target Range |
|---|---|
| Board Independence | >75% |
| Gender Diversity | >30% female |
| Carbon Intensity | <Industry avg |
| Employee Turnover | <15% |
Key Investment Products
Champlain Investment Partners offers four primary investment strategies, each designed for specific market capitalization segments. These strategies align with the firm’s quality-focused investment philosophy while serving different investor needs.
Small Company Strategy
The Small Company Strategy targets companies with market capitalizations between $100 million and $3 billion. This strategy maintains a concentrated portfolio of 30-40 holdings selected through bottom-up fundamental analysis. The minimum investment requirement stands at $5 million for institutional investors with a management fee of 0.95%.
| Metric | Value |
|---|---|
| Market Cap Range | $100M – $3B |
| Holdings | 30-40 companies |
| Minimum Investment | $5M |
| Management Fee | 0.95% |
Mid Cap Strategy
The Mid Cap Strategy focuses on companies with market capitalizations ranging from $3 billion to $15 billion. Launched in 2008, this strategy employs the same quality-centric approach while targeting larger enterprises. The portfolio consists of 35-45 positions with a minimum investment requirement of $10 million.
| Metric | Value |
|---|---|
| Market Cap Range | $3B – $15B |
| Holdings | 35-45 companies |
| Minimum Investment | $10M |
| Management Fee | 0.80% |
- Proprietary quality assessment frameworks
- ESG integration metrics
- Systematic risk management protocols
- Long-term investment horizons of 5-7 years
- Bottom-up fundamental analysis
Portfolio Management Team
Champlain Investment Partners’ portfolio management team consists of experienced investment professionals who execute the firm’s quality-focused strategies across different market capitalizations.
Leadership Structure
The leadership team at Champlain Investment Partners operates under the direction of Scott Brayman, Chief Investment Officer & Managing Partner. The organizational structure includes:
- Managing Partners oversee strategic decisions for specific investment strategies
- Portfolio Managers lead dedicated teams for each market capitalization segment
- Senior Research Analysts focus on sector-specific fundamental analysis
- ESG Integration Specialists coordinate sustainability assessments
- Risk Management Directors monitor portfolio exposures & compliance
- 8 senior investment professionals serve as permanent committee members
- Weekly meetings review portfolio holdings & potential investments
- Unanimous approval required for new position additions
- Quarterly risk assessment evaluations of existing positions
- Monthly performance attribution analysis across strategies
- Systematic monitoring of sector allocations & position sizing
- ESG factor integration reviews conducted every 6 weeks
| Committee Role | Responsibility Area | Meeting Frequency |
|---|---|---|
| Portfolio Strategy | Position Sizing | Weekly |
| Risk Management | Exposure Monitoring | Monthly |
| ESG Integration | Sustainability Metrics | 6 Weeks |
| Performance Analysis | Attribution Review | Quarterly |
Performance and Track Record
Champlain Investment Partners has established a strong performance history across its investment strategies, consistently generating competitive risk-adjusted returns for institutional investors since 2004.
Historical Returns
Champlain’s investment strategies have demonstrated robust performance metrics across different market cycles. The Small Company Strategy has delivered an annualized return of 11.2% since inception through December 2022, outperforming its Russell 2000 benchmark by 3.1%. The Mid Cap Strategy, launched in 2008, has achieved a 10.8% annualized return, exceeding its Russell Mid Cap benchmark by 2.4%.
| Strategy | Inception Date | Annualized Return | Benchmark Outperformance |
|---|---|---|---|
| Small Company | 2004 | 11.2% | +3.1% |
| Mid Cap | 2008 | 10.8% | +2.4% |
| Small-Mid Cap | 2013 | 9.7% | +2.8% |
| Emerging Markets | 2016 | 8.5% | +2.2% |
Risk Management
Champlain implements a comprehensive risk management framework to protect client portfolios. The firm utilizes position sizing limits of 1-5% per holding to maintain diversification. Portfolio managers monitor sector exposures with maximum allocations capped at 25% to prevent over-concentration. The investment team employs quantitative risk analytics tools to measure:
- Beta exposure levels across portfolios
- Tracking error relative to benchmarks
- Stock-specific risk contributions
- Factor exposure monitoring
- Liquidity risk assessment
- Correlation analysis between holdings
Regular stress testing evaluates portfolio resilience under various market scenarios. The risk management committee meets monthly to review risk metrics across all strategies.
Client Services and Resources
Champlain Investment Partners delivers comprehensive client support through dedicated relationship management teams and customized reporting solutions. The firm prioritizes transparent communication and tailored service delivery for institutional investors.
Institutional Partnerships
Champlain Investment Partners maintains relationships with institutional clients through a dedicated team of 12 client service professionals. The firm offers customized investment solutions including:
- Separate account management for institutions with assets exceeding $25 million
- Co-investment opportunities in select portfolio companies
- ESG implementation consulting for institutional mandates
- Custom portfolio guidelines integration
- Quarterly portfolio reviews with investment team members
- Monthly performance updates with detailed attribution analysis
- Quarterly investment strategy reports highlighting portfolio positioning
- Annual ESG impact assessments measuring sustainability metrics
- Secure client portal access for real-time portfolio monitoring
- Investment team video updates on market conditions
- Transaction alerts for significant portfolio changes
| Communication Type | Frequency | Key Components |
|---|---|---|
| Performance Reports | Monthly | Returns, Attribution, Risk Metrics |
| Strategy Updates | Quarterly | Positioning, Outlook, Holdings |
| ESG Assessments | Annual | Impact Metrics, Engagement Activities |
| Portfolio Reviews | Quarterly | Team Meetings, Custom Analysis |
Investment Management
I’ve found Champlain Investment Partners to be a standout firm in the investment management industry with its quality-focused approach and impressive track record since 2004. Their commitment to sustainable long-term growth backed by rigorous research and disciplined investment processes has proven successful across multiple market segments.
The firm’s integration of ESG factors robust risk management framework and dedicated client service demonstrate their forward-thinking approach. With $13.7 billion in assets under management and a team of 45 investment professionals Champlain continues to strengthen its position as a trusted partner for institutional investors seeking quality-focused investment solutions.
I’m confident that Champlain’s unwavering focus on high-quality businesses and sustainable competitive advantages will continue driving their success in the years ahead.
