- Investment philosophy and process based on Behavioral Finance will continue to drive outperformance
- Blend of quantitative behavioral screens and rigorous fundamental analysis
- We avoid behavioral flaws by constructing portfolios using current information, not past statistical relationships (i.e., optimizers)
- Hillcrest neutralizes non-alpha factors to benchmark by only taking significant deviations relative to the benchmark on stock-specific factors like value, growth and sentiment
- Hillcrest portfolios control risk by monitoring and managing sector weights, stock weights, characteristics and common factors to the S&P MidCap 400® index.
- Hillcrest follows both internal risk-control guidelines and any client-specific restrictions when managing portfolios.
|Benchmark||S&P MidCap 400® Index|
|Number of Holdings:||30 to 60 (depending on the client’s risk level)|
|Sector Weights:||Typically -5% to +5% of S&P MidCap 400® Index weights|
|Minimum Sector Weight:||0%|
|Initial Position Size:||1.5% to 4%|
|Turnover:||Typically about 25% to 35% annually|
|Liquidity:||Less than 25% of average daily volume (based on an assumed $2 billion AUM)|