Fund Strategy
The multi-strategy, multi-style fund HCP Black aims for the best risk-adjusted return through active diversification. In the process, we cannot achieve the level of diversification between asset classes brought forward by Markowitz, where all world securities, including wine collections and stamp collections, are added to the diversified portfolio.
However, instead of trying to buy as many assets within as many asset classes as possible, or analysing the historical correlation between securities, we focus on analysing the fundamentals of each investment to see how much it is related to the other investments that we have. This active diversification that starts from the fundamentals should result in high return compared to risk.
Fund Performance
The returns are net returns (returns after fees)
The returns are net returns (returns after fees)
Articles and Interviews by the Portfolio Manager
How to make profits in declining markets?
What is active diversification?
What is a balance sheet recession? It is a situation where the high indebtedness of consumers and companies makes them focus on paying off their debts instead of consuming and investing.Beggar Thy Neighbour – the whole picture of over-indebtedness and protectionist trade policy
Do you want to read more? Please see the HCP Black blog archive or order HCP Newsletter.
Allocation history
By clicking the graph, you will see the exact proportions of each asset in comparison to gross investments. The graph is updated two times a year.
Latest reported allocation
By clicking the allocation pie, you will see a brief description of each asset class. Percentages of gross investments. The pie is updated once each quarter.
PORTFOLIO MANAGEMENT TEAM
I barely have any resistance to change, which makes it easier to have an objective approach to changes in portfolio allocation. Excess returns can be achieved from many different kind of sources when one only learns to keep one’s eyes open. For example, the HCP Focus strategy’s stocks are mainly the kind of stocks that I had considered to be overvalued, just because I didn’t understand the companies’ 25-year trend. Similarly, the small cap companies in the HCP Quant strategy don’t allow large players to invest in them due to lack of liquidity, and only a few smaller investors have the knowhow that we do to perform an extensive fundamental analysis of several companies simultaneously. Cyclicality, which is the Achilles’ heel of HCP Quant and HCP Focus, is balanced by managing HCP Black so that it has enough uncorrelated investments like insurance-linked securities.
Analyst
Toivo Toikka
Head of Fund Administration
Portfolio Manager’s Deputy
Pasi Havia
HCP Quant’s Portfolio Manager
Portfolio Manager’s Twitter
My collection for the season https://t.co/cPZP0QJdBT #recession #investing
— HCP (@hcpgroup) March 12, 2020
The long 100y time perspective is the relevant one. The downside risk full-cycle is substantial. https://t.co/bLPTEkPucX
— HCP (@hcpgroup) February 28, 2020
What is the current dominant set of rules is very much how I structure my thinking on markets https://t.co/YDWcCtTwrw Here @RayDalio with his take on same theme of paradigm shifts which is articulated in detail https://t.co/lEKowFyTKE pic.twitter.com/vj3wOhUClf
— HCP (@hcpgroup) July 18, 2019
"... but those finding themselves in a typical slowdown phase of the cycle may be interested in finding out which hedge fund strategies perform best during this phase." #multistrategy https://t.co/ZonJqodK6U via Fidante Partners & @HedgeNordic pic.twitter.com/oAZjvXmBa4
— HCP (@hcpgroup) October 5, 2018