HS Management Partners, LLC Celebrates 15-Year Performance Milestone

NEW YORK, April 25, 2022 /PRNewswire/ -- HS Management Partners, LLC (HSMP), a boutique equity investment advisor, is proud to announce the completion of its 15-year performance track record, ending March 31^st, 2022 for its sole investment strategy, the HSMP Concentrated Quality Growth Equity portfolio.

 The Firm, located at 640 Fifth Avenue in New York City, was established in 2007 and currently advises assets approaching $4 billion applying a focused, bottom-up fundamentals-first approach to portfolio construction. 

Harry Segalas, Managing Partner & Chief Investment Officer, remarks, "Since inception to our 15-Year mark, our Composite has annualized compounded returns at a 12.8% annual post-fee rate (4/1/2007 through 3/31/2022).  The power of this compounding shows that cumulative returns amounted to 512.3% in that period and that $1 million invested at our start (4/1/2007) is now worth $5,123,000.  We believe this represents a strong track record during that period, even in the face of three Black Swan events in the past 15 years (the Financial Crisis in 2008, the Pandemic in 2020, and the Russian Invasion of Ukraine in 2022). 

Continuing forward, we are committed to our sole focus on our concentrated quality growth methodology.  This includes a strong valuation discipline and active management.  Undoubtedly, we will face many challenges but believe this approach will serve our clients well in our drive toward absolute returns in the years ahead.

Many thanks to the incredible HS Management Partners team that has been assembled over the years and who work tirelessly on behalf of our clients.  My partners and I feel enormous pride at the professionalism, commitment, and culture that we see at work every day.  And thanks most of all to our clients, who have stood with us over the years, entrusting us with the management of their valuable assets.  It is a responsibility that we take with utmost seriousness."

Greg Nejmeh, Partner & President, adds, "The key to our future is the same as the key to our past- our culture.  When asked by a client along the way what was the best decision we'd made, and after some reflection, I offered our best decision was to model HS Management Partners in a manner consistent with the criteria we prize among our portfolio holdings: a long-term perspective, a highly focused approach, and a relentless emphasis on quality in people, processes, products, and services.  We invested behind the core of our convictions, and that has made, and will continue to make, all the difference." 

With David Altman, Partner and Director of Research and Bart Buxbaum, Partner and Director of Client Service, the four Partners have over 150 years of combined industry experience.  In total, HSMP consists of 18 professionals with an average of 27 years of experience.  The entire HSMP team is determined to continue to manage and service client assets with the same purpose, resolve and integrity that have served as the blueprint for past success.

For HSMP market commentary and quarterly updates, follow the Firm's LinkedIn page or #HSPerspectives.  For additional information on HSMP, visit the Firm's website at www.hsmanage.com which includes a Firm video or contact Bart Buxbaum or Tom Bylaitis at 212-888-0060 or [email protected]. 

Disclosures

HSMP claims compliance with the Global Investment Performance Standards (GIPS®).  HS Management Partners, LLC is an independent SEC registered investment adviser (SEC registration does not imply any certain level of skill or training).  The HS Management Partners Concentrated Quality Growth Composite includes all fully discretionary, actively managed, fee-paying accounts (accounts that pay us an investment advisory fee even if they pay zero trading commissions) which employ our style of investing in 20-25 quality growth businesses.  These accounts must have a market value exceeding $500,000 at the time of initial inclusion in the Composite and have a market value exceeding $300,000 to maintain inclusion.  Results are based on fully discretionary accounts under management that meet our Composite's inclusion criteria, including those accounts no longer with HSMP.  Results reflect accounts managed at another entity: prior to January 1, 2008, the accounts in the Composite were non-fee paying (non-investment-advisory fee-paying) individual accounts managed by Harry Segalas in accordance with HSMP's investment policies, becoming HSMP's accounts in December 2007.  The U.S. Dollar is the currency used to express performance.  For more information or for a copy of our fully compliant GIPS® Report and/or list of composite descriptions, please contact us at 212-888-0060.  GIPS® is a registered trademark of the CFA Institute.  CFA Institute does not endorse or promote this organization, nor does it warrant the accuracy or quality of the content contained herein.

The 12.8% annualized Composite compounded return indicated here is net-of-fees and was used for the $1 million investment example.  The $1 million investment example is for illustration/discussion and there is no assurance that the indicated return was attained by any client account or could be attained in the future.  Not all client accounts are in the Composite and client accounts can have lower/higher performance than our Composite and between themselves (even accounts of the same client) for several reasons, such as:  account restrictions, account type and size, account inception, account contributions/withdrawals, timing and terms of trades and market conditions, and account investment advisory fees or lack thereof.  Also, the performance of model portfolio clients is not attributable to us as we do not make the investment decisions and do not trade the accounts.  Composite performance is presented net-of-fees (net of actual investment advisory fees and trading costs) and include the reinvestment of dividends and other earnings.  The Composite is compared to the Russell 1000® Growth Index and the S&P 500® Index as benchmarks for market context only.  The Russell 1000 Growth Index is an unmanaged index that measures the performance of those Russell 1000® Index companies (largest 1,000 U.S. companies based on market capitalization) with higher price-to-book ratios and higher forecasted growth values.  The S&P 500® Index is an unmanaged market capitalization-weighted index designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries.  There are meaningful differences between the Composite and each index that should be considered when comparing performance, such as in terms of composition, concentration and volatility (e.g., the Composite contains securities not represented in either or both indices and is much more concentrated than either index in terms of companies and sectors; the average market capitalization of companies in the Composite will likely differ from that of either index; and market or economic conditions can affect positively/negatively the Composite's performance but not the indices to the same extent).  In addition, neither index bears fees and expenses and investors cannot invest directly in either of them.  Furthermore, we do not seek to mimic any market index in our investment approach and do not maintain limits on industry or sector weightings.  In any event, Composite performance should not be taken as an indication of how the Composite or a client account will perform in the future.  Past performance is not indicative of and does not guarantee future results.  While we believe that our investment strategy will produce desired returns, we cannot guarantee that we will achieve our investment objectives.  Investing in securities involves significant risks, including the risk of loss of the original amount invested.  As of 3/31/22, our discretionary assets under management are $3.6 billion and our assets under advisement (model portfolio arrangements) are S233.6 million.  We encourage you to refer to HSMP's website www.hsmanage.com and our Firm Brochure (ADV Part 2A) and our Form CRS posted there for some material risks applicable to our investment strategy and additional information regarding our Firm and our investment strategy.  This is an opinion piece that is subject to change without notice, should not be construed as a recommendation to buy or sell any particular security, has not been tailored for any specific recipient, and should not be used as basis for making investment decisions.  The information here is not intended to cause HSMP to become a fiduciary within the meaning of Section 3(21)(A)(ii) of the Employee Retirement Income Security Act of 1974, as amended, or Section 4975(e)(3)(B) of the Internal Revenue Code of 1986, as amended.

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