In assessing risk, we ask ourselves to consider ‘the reasoned probability’ of loss in value.
At HSMP, we do not subscribe to the “Modern Portfolio” view that volatility equals risk. Rather, we view risk in largely the same fashion that we view reward- as a function of the underlying business, earnings, and valuation. Our investment approach and valuation discipline have allowed us to capture much of the upside during months in which the market registered positive performance and less of the downside during months in which the market registered negative performance. Preservation of capital through more challenging times coupled with the power of compounding has facilitated long-term outperformance.
|Upside and Downside Capture Ratios|
|HSMP (net) vs. S&P 500®||HSMP (net) vs. R1000G®|
Note: Based on monthly returns since inception (4/1/07) through 9/30/21. Performance results are presented net-of-fees and include the reinvestment of dividends and other earnings. 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 ratios going forward. Please refer to Disclosures for more information, including the ratios calculation methodology, and our Firm Brochure (ADV Part 2A) for more information about our Firm, strategy, fees, and risks.