We believe that discipline and independent analysis are the keys to finding undervalued securities. While short-term market sentiment moves prices, long-term value is driven by a company’s ability to generate future cash flows. We favor companies with durable business models, strong balance sheets, and shareholder friendly capital allocation.
Our Investment Culture
Our goal is to generate excess returns through a disciplined, research-intensive, fundamental approach to value investing. Our experienced team has worked together for over a decade in an environment of high communication, collaboration and trust. A culture based on teamwork and intensive research creates an environment where ideas are rigorously challenged and thoroughly debated.
On asset valuation and risk-adjusted returns set us apart
Our Investment Team
We have built a team of individuals with a passion for investing and a unique combination of analytical ability, creativity, experience, and discipline. Most are equity owners of our firm. We believe that our clients benefit from working with seasoned, skilled professionals whose interests are aligned with their own.
- Analytical Ability
Our Investment Process
With fundamental research as our foundation, we encourage intensive, creative thinking at all levels and stages of our investment process. Our experienced industry analysts leverage their expertise across all market capitalizations and contacts across the globe to source new ideas. Our dedicated sector teams are structured to challenge analyst assumptions, actively debate investment theses, consider alternate views and, ultimately, capture investment opportunities.
- Review screens
- Leverage H&W analyst networks
- Discuss ideas with team
- Investigate industry
- Analyze company and competitors
- Assess quality, risk and ESG considerations
- Determine normal earnings and fair value
- Undertake initial peer review
- Challenge thesis and assumptions
- Evaluate opposing views
- Recommend a position weight, balancing risk and return
Build and Manage
- Determine security weights and target portfolio
- Continually review with analysts and sector teams
- Monitor macro exposures through Economic Scenario Analysis (ESA)
Is the foundation for everything we do
Our Risk Management
The active evaluation of risk is integral to our portfolio construction. We believe that avoiding the permanent loss of capital should be the principal risk objective for long-term investors. Our portfolio managers consider macro exposure, ESG factors, and diversification along with security level risk controls including valuation support, financial strength, sustainability of business model, governance, and liquidity.
While we often run concentrated portfolios, our strategies are designed to be diversified. Key aspects of portfolio level risk controls include maximum position sizes, maximum industry and sector weights and the incorporation of economic scenario analysis.