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® | |
Up Markets | 95% |
Down Markets | 89% |
Note: Based on monthly returns since inception (4/1/07) through 9/30/24. 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.
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. Standard and Poor’s does not endorse, promote, or sponsor HSMP.
Investing in securities involves significant risks, including the risk of loss of the original amount invested. Some material risks applicable to our investment strategy include (listed alphabetically): Active Management Risk, Concentration Risk, Equity/Foreign Securities Risk, General Economic and Market Conditions Risk, Liquidity Risk and Market Capitalization Risk. This does not list every potential risk associated with our investment strategy. See material risks applicable to our investment strategy and important information and disclosures regarding our Firm at www.hsmanage.com/disclosures/ and our Firm Brochure (at www.hsmanage.com/documents/ or upon request at 212-888-0060. There can be no guarantee that investing with us will be profitable. Past performance is not indicative of and does not guarantee future results.