HCM believes its Focused Advantage Equity Portfolio can be a valuable tool to add Alpha to your overall asset allocation. HCM’s more diversified Advantage Equity Portfolio can provide an excellent backbone to your large cap equity allocation.
As you know, the securities industry is often obsessed with theoretical models of value and growth. It seems to us that the industry is enamored with volatility-based or market-oriented formulas for investing and managing risk. But, in our view, no one formula works at all times in all markets.
So we search for “firms for all seasons” -- strong companies that we expect will do better than weaker companies in good times and bad. Based on our experience, we have found that investing in these industry standouts makes sense, particularly if they appear to be undervalued.
And we think this gives you the opportunity to build a solid, diversified asset base while effectively mitigating risk. We seek to offer our clients several benefits, including:
- The comfort of investing in strong companies. Because we strive to select companies with a clear, sustainable competitive advantage, we seek to identify companies that our research shows are more likely to be “winners” in their industries over the long run.
- The ability to easily understand our investment process. While some investment advisers have extremely complex processes or operate in a “black box,” we find that our approach is straightforward and clear.
- The protection of a powerful approach to mitigating risk. Most portfolios rely on diversification to reduce risk. We attempt to control risk by investing in strong companies. For us, volatility represents opportunity: a great company with a depressed stock price is an excellent value. HCM seeks to provide an approach that complements the diversification approaches that many of our clients are already using.
- The broadening of your portfolio strategy beyond the “conventional wisdom.” Some investment advisers “follow the crowd”; others are “contrarians” who follow the crowd in the opposite direction. Our analysis seeks to go beyond this bi-polar “conventional wisdom” to select those companies that we see as best for our clients over the long run – whether or not the firms are currently “popular.”