HMI’S INVESTABLE UNIVERSE

HMI invests in companies with high-quality business models – ones that can grow robustly and produce genuine free cash flow during and beyond a 5- to 10-year horizon. We find these enterprises occupying strategic choke points in expanding economic value chains (industry sectors), where competition or substitution will not impair their growth, return on capital or free cash flow.

HMI favors management teams that have a strong growth orientation balanced with disciplined and thoughtful use of resources in pursuit of that growth.

VALUE

HMI is creative and resourceful in finding value anywhere on the balance sheet and across geographies, utilizing the firm’s deep sector knowledge to exploit value differentials when they arise. We actively manage our portfolio – tolerating and exploiting price volatility in investment instruments to find value and selling when the price no longer offers an attractive return.

ENGAGEMENT WITH COMPANIES

HMI seeks to leave each portfolio company stronger than before HMI engaged. While not all companies will benefit from a high degree of involvement, HMI will work with management teams where appropriate. HMI’s strengths in capital allocation, strategy and alignment of interests can be brought to bear through direct, positive and constructive dialogue with management as well as a company’s board of directors.

FOCUS

Do one thing and do it well. HMI operates a single strategy with a tightly scripted target universe of possible investments. The firm’s entire operational and fund structure are built to support the investment team in pursuit of this single strategy.

CULTURE

HMI nurtures a culture of intellectual curiosity and truth-seeking, underpinned by a willingness to admit what we do not know. The HMI team seeks to always learn more through relentless research, sector specialization, concentration, iteration and institutional accumulation of knowledge. The HMI team trusts in its knowledge to act counter to conventional wisdom when we believe it is in error.