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.




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

I believe that the two key success factors of active investing are: (1) the applied investment strategy and; (2) the portfolio manager’s skills.

A fitting metaphor could be a racing scenario; it isn’t enough that the car (strategy) is top class if the driver (portfolio manager) can’t drive properly. A fund investor’s situation can be compared to a person betting on the results of a car race; the victory goes to the person who finds the optimal car-driver combination. A lot has been written about sound investment strategies, but surprisingly little about portfolio managers and the qualities they should possess.

Read more…

HCP Focus Investment Wisdom

“If I have seen further it is by standing on the shoulders of giants.”

This famous quote is traditionally attributed to Sir Isaac Newton in his letter to Robert Hooke in 1676, although the original phrase itself probably originates from the 12th-century Neo-Platonist philosopher Bernard of Chartres.

It has come to stand for an attitude of humility and gratitude for the passed-down wisdom of past and current masters, and a method of discovering truth by building on previous discoveries. To some, this might seem like a meek admittance of one’s limitations, but if Newton, one of the most brilliant minds in the history of mankind, had no trouble admitting this, why should we?

According to an old proverb, one should not “reinvent the wheel”. It would be both arrogant and foolish to attempt to solve problems that others, much wiser than us, have solved long ago.

When we actively try to learn from our predecessors, we simultaneously free scarce resources that can be used to find creative and effective solutions to those problems that actually are unique to us and our clients.

Below is a collection of business and investment related quotations by both well known and less well known investing legends, as well as other people worth looking up to and learning from. They have inspired us and they also allow you to get a good glimpse of our way of thinking. Enjoy!

Investing quotes