For over four decades, a continuous growing list of private clients from around the world have benefited from Hui Portfolio Management's disciplined investment philosophy that is rooted in a multi-faceted analysis of individual companies to identify value and growth opportunities.
Over time, our focus on broad-based exposure to best-of-breed large-cap companies coupled with an "invest as business owners" process has produced solid, long-term risk-adjusted returns for our investors.
Less is more.
It is becoming increasingly challenging to find investment solutions that consistently perform well. As the investment universe becomes more correlated through globalization, it is difficult to outperform. Often, samples of "over-diversified" portfolios come across our desks where too much emphasis is placed on diversification in an attempt to dampen volatility while simultaneously taking too much away from the benefits of fundamental stock picking. Holding a basket of exchange-traded funds (ETFs) or too many mutual funds in a portfolio can often lead an investor to hold thousands of individual positions where diversification is taken to an extreme, and ultimately, investors hold positions that are very similar to the benchmark.
Traditional finance theory often suggests that holding a diversified portfolio will lead to risk-reduction benefits. In reality, more recent quantitative evidence show that diversification benefits can be realized with much fewer holdings. This evidence confirms our belief that holding an optimal number of concentrated holdings is not riskier, but actually offers the best chance of delivering enhanced risk-adjusted performance over the long run.
Our two proprietary models are constructed on the basis of high-conviction that truly focuses on the art of fundamental stock picking. Each mandate invests in dominant companies of the highest quality, each carefully selected based on a three-pronged analysis: fundamental, technical and sentiment. Investments that make it into the final portfolio must satisfy all three filters which allows an investment the highest probability of succeeding.
One of the major investment themes underlying our investment philosophy is the concept of risk-adjusted performance. In other words, we are constantly asking ourselves how to achieve a certain acceptable rate of return on investment while undertaking less volatility. With this methodology underpinning both the overall portfolio construction and individual investment selection, our investors experience a relatively more comfortable and smoother return over time.
Our two investment models serve as the core building blocks of our client portfolios:
Hui North American Large Cap Equity: 45% Canadian / 55% U.S. & Multinational (Dual Currency: CAD and USD)
Hui U.S. Resilient Opportunities: 100% U.S. and Multinational (USD or CAD)
Hui Portfolio Management utilizes a true open architecture framework. This means there is no bias towards in-house investment products. To construct our portfolios, we strategically pair our investment management with leading, award-winning asset managers to come up with the optimal investment mix.