How We Manage Money
Welcome to a better way to invest. Unlike money managers who chase short term performance we focus on producing sustainable long-term returns for our clients.
At Hyperion, our investment process is guided by a set of core principles. We never invest in fads. Our analysis of investment targets is based on a fundamentals-driven, logical process that discards companies that do not pass our rigorous investment criteria.
Our high conviction strategy means we never hold companies that we do not expect to perform, resulting in concentrated portfolios of high-performing equities.
This means we totally ignore index weightings and construct portfolios of only our best ideas. Our Active Share, a measure of a fund’s divergence from an index, is usually greater than 67%, meaning our portfolios differ substantially from the index A 2006 Yale University study showed that “... funds with the highest Active Share significantly outperform their benchmarks both before and after expenses and their returns are persistent from year to year”. Our clients can be confident that they are really investing with an active fund manager and not a “closet index hugger”.
Our investment approach is designed to maximise returns over rolling five-year periods. We believe that by investing in high quality and predictable businesses at prices that offer attractive medium term returns, we will achieve our aim. In order to realise our goals, we emphasise the importance of the predictability of a business’s medium term future economic performance because the more predictable the future cash flows, the more confident we will be that our forecasts will be achieved.
K. J. Martijn Cremers & Antti Petajisto 'How active is your fund manager? A new measure that predicts performance', Review of Financial Studies, 6 August 2009