Investing in a winner takes all world
Hyperion Asset Management’s Guide to Successful Long-Term Investing
The COVID-19 crisis exposed the fragility of our interconnected financial system and it may be the most significant economic event that many investors will experience in their lifetimes.
However, we believe there are macro factors investors need to consider and which will prevail even after the pandemic passes. These include high levels of debt, declining monetary tailwinds, rising wealth inequality, climate change, and technological innovation which is deflationary and disruptive.
This is why we expect economic growth to remain stagnant for at least the next decade, making it more difficult for investors to be successful long term.
In a low growth world, we believe that the best way for investors to find outperformance is to identify the small group of winners that will continue to take market share and grow in challenging market environments.
Such a winner-takes-all environment means that returns will be concentrated in a small number of companies. Our investment process is focused on identifying these businesses along with the key themes which will deliver alpha.
We encourage you to download a copy of our guide to learn more about Hyperion's analysis of equity markets over time and how we think about investing for success over the long term.
We hope you find this guide both insightful and useful on your investment journey.
Australian and global equity portfolios constructed with a long term mindset.
Hyperion Asset Management exists to help our clients protect and grow their capital over the long term. When we invest capital in listed companies on our clients’ behalves, we have the mindset of long-term business owners, not short-term traders. The average holding period for the companies in our portfolios is 10 years and long-term sustainability of the businesses we invest in is core to our philosophy.
Sustainability is essential because over long time periods, the value proposition to all relevant stakeholders needs to be sufficiently attractive for the business to grow and thrive. In the very long term, this includes the wider community, society and the environment. Long term capital preservation is a core part of our investment philosophy as we see risk as permanent loss of capital, not short-term market price volatility.
Our mindset is centred on achieving attractive long-term absolute positive real (inflation adjusted) returns on our clients’ portfolios. Our investment philosophy and process are designed to compound our clients’ capital at rates of return that are not only positive in absolute (inflation adjusted) terms but also materially above the relevant passive benchmarks over long time horizons. Compounding returns on capital are core to how we invest and how we have been able to grow our clients’ capital.
Since Hyperion was established in 1996, we have achieved our goal of producing attractive positive absolute real returns (preserving capital) whilst also achieving long-term returns significantly above the relevant benchmarks (after fees).
This guide is aimed at sophisticated investors looking to learn directly from Hyperion Asset Management's investment specialists.
Past performance is not a reliable indicator of future performance.