HGK’s value driven and risk averse domestic equity investment process has been employed in its current form since 1990. The equity team screens for disciplined companies with improving cash flows selling below their discounted present value. Rigorous qualitative fundamental analysis is applied to make the final security selection. During this analysis, the equity team focuses on undervalued companies that operate from a position of competitive advantage and whose management team understands the principles of shareholder wealth creation.
In order to reduce portfolio volatility the funds maintain exposure to all major industry sectors. Each fund strategy maintains guidelines that limit its sector allocations to between 50% and 150% of a designated market benchmark. Additionally, this process serves to reduce systematic risk and allows HGK’s superior stock picking abilities to generate alpha for its clients.
Small Cap Value Equity
|Market Cap Range||Number of Holdings||Minimum Institutional
|> $200 million – $4 billion||65 – 75||$1 million|