Investment Process

What We Do

The HGP international equity portfolios are concentrated and derived from a universe of publicly traded companies located outside of the United States. The firm employs a bottom-up, “quantamental” approach to select stocks that are assembled into portfolios.

  • Proprietary multi-factor, quantitative model is employed to identify companies with appealing characteristics trading at attractive valuations

  • Validates the information unearthed through the quantitative screening process
  • Verifies the sustainability of the screen results, financial statements, company-specific factors, and industry dynamics to better understand the underlying businesses
  • Seeks stocks, entire industries, and/or countries that exhibit asymmetric risk profiles to safeguard investors, while offering the potential for compelling returns

  • Concentrated, diversified and driven by bottom-up process
  • Generally limit cash to 5% of the total portfolio 
  • Results in tracking error ranging between 3% and 7%, with objective of delivering superior risk-adjusted performance over market cycles

Stocks are sold for a variety of reasons, including:

  • Realization of the fair value or target price
  • Limit positions to 5% of total portfolio value
  • Change in the management or a change in the opinion of management
  • Significant deterioration in company fundamentals