A justifiably high degree of manager research intellectual capital among clients is dedicated to understanding HS Management Partners’ investment philosophy and approach. Rich conversations surround what we deem important in evaluating a company, the decision points governing how and why a security enters and exits our Concentrated Quality Growth portfolio, our philosophy around portfolio construction, the responsibilities of various team members and how the pieces come together to form the broader HSMP investment mosaic. The discussion often then pivots to performance, with the bridge between process and performance one where we’re asked to detail the important constituents contributing to performance in a given interval. Essentially, what worked, what didn’t, and why?
NFL Hall of Fame Football Coach Bill Parcells famously once quipped, “If they want you to cook the dinner, at least they ought to let you shop for some of the groceries.” In other words, given that he was accountable for the performance and win/loss record of the team, Parcells believed he should have greater influence on the players selected to play under his watch. In the investment profession, our win/loss record is measured by our absolute and relative performance, and our ingredient list is comprised of either attribution or contribution.
To read more, download the full thought piece here.