At HMI, we seek companies with high-quality business models – ones that can grow and generate real free cash flow during and beyond a ten-year horizon. We find these enterprises occupying strategic points in expanding economic value chains, where competition or substitution will not impair their growth, return on capital or free cash flow.
We are creative and resourceful in finding value in these companies anywhere on the balance sheet and across geographies, exploiting our knowledge and relationships to gain advantage. We tolerate and exploit price volatility in investment instruments to find value. We sell our investments when the price no longer offers an attractive return. We trust in our knowledge to act counter to conventional wisdom when we believe it is in error. We avoid those people, places and structures that could separate us from our capital.
We nurture a culture of intellectual curiosity and truth-seeking, underpinned by the humility to admit what we do not know. We seek to always learn more about our sectors and companies through relentless research, sector specialization, concentration, iteration and institutional accumulation of knowledge. Our portfolio is concentrated and focused on five industry sectors (currently):
- Information Services
- Financial Services
- Media & Marketing Services
We maintain the highest ethical standards for our industry and forego shortcuts that violate laws, our ethics or common sense.