As a registered investment adviser, HCM manages individual accounts in accordance with its philosophy of investing in strong companies when their stocks are undervalued.
HCM works closely with brokers, who retain custody of the funds invested. For qualified investors with broker held transaction-based fee accounts, there is a $2 million investment minimum. There are lower minimums available for wrap fee accounts.
For applicable guidelines, see your financial institution’s link below or contact our Client Services Department at
In general, HCM takes two approaches to managing these accounts. In the first, it builds its Focused Advantage Equity Portfolios by purchasing in equal proportion the 20 securities held in its Focused Advantage Equity model. Each stock represents approximately 5% of the total market value but no one industry may represent more than 25% of the total portfolio at cost.
In the second approach, to construct its Advantage Equity Portfolios, HCM purchases, in equal proportion, the 45 securities held in its Advantage Equity model. Each stock represents approximately 2.2% of total market value, subject to the limitation that no industry may represent more than 10% of the total portfolio.
For both Portfolios, the “sell” discipline is similar:
- Sell all shares if a portfolio holding fails the qualitative screen.
- Sell all shares if the price of a security exceeds fair value by more than 20% using our quantitative measures.
- Re-balance each holding to its target weight; for Advantage Equity, buying if its position is less than 1.5% of total market value and selling if its position exceeds 2.9% of total market value; for Focused Advantage, buying if its position is less than 2.5% of total market value and selling if its position exceeds 10% of total market value.
For more information on performance click on this link. For additional information on the Portfolios, contact us or see the Portfolio Characteristics section on this website.
HCM is also the investment adviser to a family of registered Mutual Funds.