Investment Philosophy

Hillcrest’s investment philosophy is centered on the understanding that market participants consistently fall victim to behavioral biases that impact judgment and decision making. Investors try to make buy, hold or sell decisions about a stock based on an analysis of financial data and other available information. However, they are also prone to behavioral biases, such as decision error and affect, which involve emotions and feelings about a company. This behavioral effect is the reason that stocks trade at prices that often deviate from fair value.

 

Hillcrest understands and exploits behavioral biases to consistently add value as an active investment manager. Our expertise in Behavioral Finance differentiates us from many other active managers as we have a deeper understanding of the market anomalies that we leverage to generate sustainable outperformance.