Hermes Global Equities Advisors

The strength of our Global Equity capability lies in the following:

  • An experienced and complementary sector-based global team: We believe that investors are best served by portfolio managers who can look globally across sectors to find the best stocks. Large research platforms looking at stocks locally often miss the best opportunities because they view the investable universe through a fragmented and limited lens. Our global equity team consists of global sector specialists averaging 19 years of experience that draw off a broad range of resources and industry contacts to identify the most attractive opportunities within their respective sectors on a global basis. The highly diverse team then leverages their own collective range of perspectives, experience and insight to ensure that each holding within the broader portfolio is analyzed from every angle.
  • A focused bottom-up investment process: We believe that the best way to consistently add value for our clients is through stock selection. We have therefore aligned our investment process with the explicit skill of our team by maintaining a relatively neutral approach with respect to sector and region allocations. This structure ensures that alpha is predominantly derived from our stock selection, which we believe can provide a more consistent and higher quality performance stream for our clients.
  • High conviction balanced with disciplined risk-budgeting: We believe that active managers should seek to maximize the risk in their proven skill set to capitalize on their strengths. Given our focus on stock selection we manage a relatively concentrated portfolio of 50 stocks which typically results in higher stock-specific risk. However it is important to note that while a lower number of stocks may increase stock-specific risk, it does not necessarily increase total portfolio risk. Our risk-based approach to portfolio construction seeks to maximize risk-adjusted returns by striking a balance between insightful research, stock-level conviction and disciplined portfolio risk control.
  • 50 independent stock stories: The idea behind our strategy is to seek out the 50 best stocks globally that also provide non-correlated sources of growth. A 50 stock portfolio provides ample diversification through a sufficient number of independent investment decisions. We reduce portfolio risk initially through our relative sector and region neutrality. We further reduce risk by ensuring the drivers of growth in the companies that we hold are not dependent on each other. This requires a deep understanding of the various business lines within the companies held in our portfolio and is more visible and controllable in a concentrated portfolio.

Hermes Global Equities Advisors is a division of Hermes Fund Managers (North America) LP, an SEC registered adviser.