- Investment Strategy
HGI's International Growth Strategy seeks to outperform the MSCI ACWI ex USA benchmark by investing in extraordinary companies - industry leaders that generate sustainable earnings growth. This Strategy invests principally in equity securities of international companies, including emerging markets. Securities selected are generally those of large-cap companies with a market capitalization of over $1 billion. Securities purchased are from ideas generated by the team's bottom-up research efforts. The Strategy does not use derivatives to hedge currency exposure. Cash and cash equivalents are generally less than 5% of the portfolio.
Regional / Sector Allocation
The Strategy's major regions are Developed Europe, Other Developed and Emerging Markets. This Strategy controls basis risk by centering its model portfolio over its benchmark with modest regional and sector tilts from the benchmark weight. Thus, exposure to any sector or region will fluctuate depending on the benchmark weight and the Team's CIO's determination on how much to deviate the portfolio from the benchmark weight.
The Strategy results in a portfolio that typically holds 50-70 securities. The team's growth discipline has typically resulted in a portfolio diversified among companies, regions and sectors, with no single position usually exceeding 5% of the portfolio at time of purchase.