Important Disclosures

  • The use of the terms “HS Management Partners,”  “HSMP,”  “Firm,”  “we,”  “our,”  “its,”  and  “us” on this website refer to HS Management Partners, LLC.   The use of the term “Composite” on this website refers to our HS Management Partners Concentrated Quality Growth Composite.  The use of the term “net-of-fees” on this website means net of our investment advisory fees and net of trading costs only.
  • HSMP offers one sole investment strategy:   HSMP Concentrated Quality Growth Equity strategy.   See Item 8 of our Firm Brochure (ADV Part 2A) for a description of our investment process.    We seek to apply our investment strategy to all client accounts with the goal of minimizing dispersion and providing similar investment results across accounts over time.    However, the implementation of our investment strategy depends on several factors, including client restrictions, type and size of the account, timing and market conditions at the account’s inception and further contributions or withdrawals, timing and terms of trade execution orders, and client directed brokerage and commission recapture instructions.    Therefore, an account’s holdings and investment performance could deviate from other client accounts managed in accordance with our sole strategy.    Clients’ experience may vary for several reasons, and clients and prospective clients should not assume or infer that their experience will be similar to that of other past or existing clients.    Given our investment strategy as stated above, we tailor our investment advice to clients in limited circumstances.
  • The decision to open an account with HSMP is that of the client, and therefore it is up to each client to determine whether HSMP’s management strategy is appropriate for his/her specific situation.    We solely advise clients as to the portion of their assets for which we have been given discretionary management in accordance with our investment strategy.    We do not advise clients on their overall financial plan.    Further, we do not take into consideration clients’ assets or investments outside of our management when implementing our strategy in their accounts at HSMP.
  • In implementing our investment strategy, we typically build a concentrated portfolio with a hard cap on company names and with an aim to keeping our client’s capital nearly fully invested.    Client accounts generally hold 20 to 25 companies, although in certain circumstances they may hold more or less names (for example, during certain transitional periods of selling or buying a security or due to some corporate actions such as spinoffs, or due to some other factors).    Cash is not a major component of our strategy and we tend to keep very low cash balances in client accounts.    Although we primarily invest in domestic securities in the form of common stock, client portfolios can include foreign issuer equity securities in the form of American Depository Receipts (both sponsored and non-sponsored) or Ordinary shares.    As bottom-up, fundamentals-first investors, we do not maintain limits on industry or sector weightings, and while we do limit portfolio positions by company, clients’ portfolios are likely to be significantly concentrated by sector, industry and/or geography, among other factors (for example, clients’ portfolios can have over 50% exposure to the consumer discretionary, consumer staples and/or technology sectors).    We take an incremental approach to actively managing client portfolios.    Historically, our annual portfolio turnover rate has ranged generally between 70% to 100% (measured in dollars), and is comprised of new names and incremental changes to existing positions.
  • HSMP claims compliance with the Global Investment Performance Standards (GIPS®).    For the purpose of complying with GIPS®, HS Management Partners defines itself as HS Management Partners, LLC, an independent SEC registered investment adviser.    (Please note that although HSMP is registered with the SEC as an investment adviser, SEC registration does not imply any certain level of skill or training.)    The Composite includes all fully discretionary fee paying accounts which employ our style of investing in 20 to 25 quality growth businesses.    These accounts must have a market value of greater than $500,000 at the time of initial inclusion, including those accounts no longer with the Firm.    The U.S. Dollar is the currency used to express performance.    For more information or for a copy of our fully compliant GIPS® presentation and/or list of composite descriptions, please contact us at 212.888.0060.
  • For benchmark purposes, the Composite is compared to the S&P 500® and Russell 1000® Growth indices.    The S&P 500® Index is an unmanaged capitalization-weighted index of 500 stocks designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries.    The Russell 1000® Growth Index measures the performance of those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values.  The Performance comparisons on this website are provided for market context only, and there are meaningful differences between the Composite and the S&P 500® and Russell 1000® Growth indices that should be considered when comparing performance.    For example, the average market capitalization of companies in the Composite will likely differ from that of either index, the Composite is much more concentrated than either index in terms of companies and sectors, and the volatility of the Composite may be greater or less than that of either index.    In addition, market or economic conditions may affect positively or negatively the performance of the Composite but not the indices, which do not bear market risk.    Moreover, the performance of the Composite may vary from that of the indices due to the performance of stocks held in the Composite but not included in the indices, or stocks included in the indices but not held in the Composite.
  • Client account performance may vary from that of the Composite or from that of other client accounts for reasons such as client restrictions, type and size of the account, timing and market conditions at the account’s inception and further contributions or withdrawals, timing and terms of trade execution orders, and client directed brokerage and commission recapture instructions.
  • Performance (returns) presented on this website reflect the reinvestment of dividends and other earnings.    Composite returns are presented net of advisory fees and trading costs but do not reflect the effect of U.S. or foreign taxes.    Neither index bears fees and expenses, and investors cannot invest directly in either of them.
  • The year-to-date performance results shown on our Performance page are preliminary and have not been verified.
  • Upside [downside] ratios shown on our Risk page were computed by dividing the cumulative annualized return of the HSMP Composite (net-of-fee) in months of positive [negative] index returns by the cumulative annualized return of said index for those same months. In other words, the upside ratio represents the percentage share of participation the HSMP Concentrated Quality Growth Portfolio captured as a percentage of the index gain in the months when the respective index was positive, while the downside capture ratio represents the percentage share of participation the HSMP Portfolio captured as a percentage of the index decline in months when the respective index was negative. There is no guarantee that investing with HSMP will be profitable or that we will be able to effectively manage risk or maintain these or similar upside [downside] ratios going forward.  Past performance is not indicative of and does not guarantee future results.  Please refer to our Firm Brochure (ADV Part 2A) for more information about risks applicable to our investment strategy.
  • Investing in equity securities involves significant risks that clients should be prepared to bear, including the risk of loss of the original amount invested.    Material risks applicable to our investment strategy include active management risk, concentration risk, sector risk, cybersecurity risk, equities securities risk, foreign securities risk, legal and regulatory risk, low cash balance risk, market capitalization risk, and reliance on key personnel risk.    This does not list every potential risk associated with our investment strategy.    Please refer to our Firm Brochure (ADV Part 2A) for more information about risks applicable to our investment strategy.  There can be no guarantee that investing with us will be profitable.    Past performance is not indicative of and does not guarantee future results.
  • Information provided on this website may be estimated.    It should not be relied upon for tax preparation.    Official records for client accounts are maintained by their respective custodians.
  • Each investment service or related product referred to on this website is intended to be made available only to U.S. residents located in states where HSMP is authorized to transact business as an investment adviser.    This website should not be considered a solicitation for or offering of any investment service to any person in any jurisdiction where such solicitation or offering would be illegal.
  • The information provided on this website is for informational, educational and non-commercial purposes only and should not be construed as investment, financial, legal, tax or other advice.   Although we may provide on this website data, information or content relating to investments or investment strategies, nothing presented on this website or in any report or other materials posted on or linked to this website, constitutes investment advice or a solicitation, recommendation, endorsement, representation of suitability or offer by HSMP to buy or sell any security or investment product.    Nothing on this website should be used as the basis for making investment decisions.
  • This website includes general information and has not been tailored for any specific recipient or recipients.  Accordingly, the information presented on this website is not intended to cause HS Management Partners, LLC to become a fiduciary within the meaning of Section 3(21)(A)(ii) of the Employee Retirement Income Security Act of 1974, as amended or Section 4975(e)(3)(B) of the Internal Revenue Code of 1986, as amended.
  • All information on this website concerning our Firm, our personnel, our investment strategy, fees, risks, and related matters is qualified by and should be read in conjunction with our Firm Brochure (ADV Part 2A), which is also available on the SEC’s website at www.adviserinfo.sec.gov (CRD Number 145480).
  • GIPS® is a registered trademark of the CFA Institute.    CFA Institute has not been involved in the preparation or review of any content on this website.    Russell® is a trademark of Russell Investment Group.    Russell Investment Group is the source and owner of the trademarks, service marks, and copyrights related to the Russell Indexes.    S&P 500® Index is a registered trademark of Standard and Poor’s Financial Services LLC, a division of the McGraw-Hill Companies, Inc.   Standard & Poor’s is the owner of the trademarks, service marks, and copyrights related to its indexes.