Our investment philosophy is founded on the belief that investing in undervalued companies with above average growth prospects will provide strong returns on invested capital. As such, our investment style is best described as a value approach complimented by a growth overlay.

A typical Hesperian stock has a low trailing price to earnings (P/E) multiple, a low trailing price to cash flow (P/CF) multiple, a high return on equity (ROE), and a clean balance sheet. This approach limits our downside risk by focusing on trailing numbers rather than expected numbers that may or may not materialize.

We run concentrated portfolios containing 30-40 of our ideas, with the top ten holdings representing 40-50% of the funds. Even with this concentration, our portfolios remain balanced as we continually aim to maintain positions in at least seven of the ten market sectors.

Two qualified Portfolio Managers jointly run each of our products and investment decisions are reviewed by at least three Portfolio Managers. This methodology provides the additional benefit of having multiple investment professionals contributing on each product rather than a single manager researching and executing all investment decisions. Our management structure also ensures continuity in the event that a member of our investment team is required to step back from daily operations.
 
The members of our investment team are focused on generating “measurably superior” performance not gathering assets. Each member brings a different set of skills and techniques to the investment process, ensuring that each decision is analyzed from multiple perspectives. Further to that, our Portfolio Managers are significant investors in our funds as well as owners of Hesperian Capital management therefore, further aligning our interests with those who invest in our funds.