Investment Philosophy

We believe stocks deviate from their fair value due to behavioral biases. Hillcrest understands and exploits these biases to consistently add value relative to the benchmark.

    • Our investment philosophy is deeply rooted in our expertise in Behavioral Finance.
    • We understand and take advantage of the Behavioral cycle of stock movements.
    • We believe biases – such as expert overconfidence and the base-rate effect – are common traps for active managers.
    • Behavioral approaches can offer a better way to determine stock valuations and future growth prospects.
    • We combine the strengths of model-driven Behavioral analysis screens with rigorous traditional fundamental research with the goal of adding value equally through both.

 

The Behavioral Cycle

Philosophy Calibri JPEG