Investment Strategies And Process
The mutual funds selected for inclusion in the portfolios of H&S's clients are managed to specific objectives following tightly prescribed strategies with generally predictable investment characteristics.
The mutual funds are managed by top-rated national and international investment managers, thereby offering H&S's clients access to a level of skill and expertise ordinarily available only to large institutional investors. The managers included in each portfolio are selected based upon their complementary investment styles and their consistent performance in up and down markets. Their excellent long-term track records indicate why they have been selected to manage the assets for a virtual "who's who" of Fortune 500 companies, foundations and governmental agencies.
Selection Criteria
In selecting the mutual finds to be included within the portfolios of its clients, H&S looks for managers with distinctive investment styles and utilizes a number of outside services to perform the initial due diligence on each fund. Funds within each asset class are evaluated based upon:
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Performance that falls within the top tier of funds in their category |
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Consistent performance over market cycles versus episodic returns |
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Internal factors such as sector weightings, P/E ratios, turnover statistics, and standard deviation |
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Each fund manager's qualifications, tenure, and consistency of investment philosophy/style |
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Each fund family's compliance standards |
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Continuous Monitoring And Review
To maintain long-term investor satisfaction, H&S closely monitors each fund's investment policy and performance. The managers selected have already achieved outstanding results and are, therefore, expected to continue to strive to consistently achieve investment returns that will stand out against comparable funds within the same asset class.
The multi manager approach adopted by H&S is predicated on the premise that no fund manager is going to provide top performance every year. Factors that would cause H&S to consider replacing a fund could include, among others, a change in the fund manager, performance over several quarters that varies significantly from other funds in its peer group, a change in the manager's investment philosophy/style, or an investment in stocks or bonds inconsistent with the fund's stated investment objective. Based upon changes in market conditions, H&S may also reallocate funds and/or remove an asset class to reduce risk and improve returns.
Clients derive a sense of comfort and security knowing that they can select a managed portfolio that is professionally designed to perform within their stated risk/reward parameters; a portfolio that is closely monitored, periodically rebalanced and adjusted so that the portfolio has the best chance of performing within its stated risk/reward parameters over long periods of time.
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