Fund Strategy

The fund follows the discipline of value investing by primarily purchasing high-quality, large- and mid-cap stocks at substantial discounts from the estimated intrinsic value. In other words, it concentrates on identifying exceptional companies that are underpriced.

In this article, we give an overview of the investment strategy, the underlying philosophy, and the applied processes of the HCP Focus equity strategy. The cornerstones of the strategy may be described as follows:

  1. Attempt to identify high-quality companies that may be purchased at a significant discount from our best estimate of underlying (intrinsic or fundamental) value.
  2. Assemble a concentrated portfolio (8–15 stocks) of such investments.
  3. Hold them until: (i) the intrinsic value of the security is fully reflected in its market value, (ii) the conditions regarding the security change making the original investment thesis obsolete, (iii) a markedly superior investment opportunity appears, or (iv) it becomes apparent that the original investment thesis was faulty.

Fund Performance

The returns are net returns (returns after fees)
Please note that past performance is not indicative of future performance. The HCP Focus strategy commenced operations 31.5.2007. The strategy has been operating under a mutual fund structure since 31.11.2012. The returns for the period 31.5.2007 – 15.12.2009 are gross returns (returns before fees). The returns for the period starting 16.12.2009 and onwards are net returns (returns after fees). All indices are total-return indices with all dividends reinvested. The return numbers are audited. All returns are calculated in euros.
The returns are net returns (returns after fees)
Please note that past performance is not indicative of future performance. The HCP Focus strategy commenced operations 31.5.2007. The strategy has been operating under a mutual fund structure since 31.11.2012. The returns for the period 31.5.2007 – 15.12.2009 are gross returns (returns before fees). The returns for the period starting 16.12.2009 and onwards are net returns (returns after fees). All indices are total-return indices with all dividends reinvested. The return numbers are audited. All returns are calculated in euros.

Megatrends and Investing

Both financial theory and practical experience clearly show that the most successful investment strategies are usually long-term strategies.

The longer the investment horizon is, the more important it is to account for megatrends in the decision-making process.

Good examples of current active trends are globalisation, the digital revolution, and the demographic shift taking place in the industrialised world.

In the article below, we discuss a number of such trends from the vantage point of the long-term investor.

Article: Secular Trends

HCP Focus’ Portfolio Management Team

Pasi Havia

Portfolio Manager

Pasi Havia
Portfolio Manager, Partner for Private Clients

Junior Portfolio Manager

Elias Koski
COO, Head of Fund Administration

Analyst

Anthony Simola
Analyst, Institutional Sales

Investor Updates