Portfolio Management

In the long run, it's not just how much money you make that will determine your future prosperity. It's how much of that money you put to work by saving it and investing it.

– Peter Lynch

Your financial partner for life


Investment philosophy.

HFG follows an evidence-based investment philosophy focused on helping clients build diversified portfolios in cost conscience manner. We have a strong belief in capital markets and that a portfolio can be structured to pursue higher expected returns. Evidence has illustrated that overpaying for active management with high turnover has not produced consistent or better results. In fact, only approximately 1 in 5 active managers outperform passive indexes.

Academically, we have followed the research and teachings of Nobel Laureate Eugene Fama and professor Kenneth French, who published a seminal paper in 1992 that demonstrated certain areas of the market consistently produced better results or otherwise known as premiums.

We have spent years modeling our philosophy and follow a series of steps to construct a globally diversified portfolio.

This involves a three-step process:

Step 1

Step 1

Understand the investment climate and use valuations to measure risk level and return potential among equity asset classes.

  • Shiller P/E (price to earnings) Ratio.
  • P/B (price to book) Ratio.

*Data originally published by Research Affiliates

Step 2

Step 2

Identify criterion and factors in the marketplace that have been proven by academic research to increase the probability of enhancing returns.

  • Size Premium (Small companies outperform Large).
  • Value Premium (Value companies outperform Growth).
  • Profitability Premium (Profitable companies outperform the market).

Step 3

Step 3

Focus on what we can control.

  • Create an investment plan that fits your risk and return goals.
  • Create a financial plan that identifies personal and financial objectives.
  • Manage expectations and exercise discipline during market fluctuations.
  • Minimize taxes through careful planning and proactive review.
  • Control management expenses and transaction costs.