International Value Strategy

Strategy Overview

HGI's International Value Strategy seeks to outperform the MSCI ACWI ex USA benchmark by investing in companies that have good fundamental prospects and are undervalued. This Strategy invests principally in equity securities of international companies, including emerging markets. Securities selected are generally those of large-cap companies with a market capitalization of over $1 billion. Securities purchased are from ideas generated by the Value Team's bottom-up research efforts. The Strategy does not use derivatives to hedge currency exposure. Cash and cash equivalents are generally less than 5% of the portfolio.

Regional / Sector Allocation

The Strategy's major regions are Europe, Japan and the Rest of the World. The Strategy does not have static percentage limits on specific sectors or regions. Rather, stock selection based on bottom-up fundamental research is meant to drive sector and regional allocations. Thus, exposure to any sector or region will fluctuate depending on the conclusion reached during the course of the Team's fundamental research. However, regional allocation has generally ranged between +/-30% of the index weight and sector allocation has generally ranged between 0.5x - 2x of the index weight. Emerging markets exposure is limited to the greater of 25% of the portfolio or +50% of the relative index weight.

Portfolio Construction

Portfolios are constructed utilizing a bottom-up process. The Strategy results in a portfolio that typically holds 75-85 securities. The Team's value discipline has typically resulted in a portfolio diversified among companies, regions and sectors, with no single position usually exceeding 5% of the portfolio at time of purchase.

For detailed information sheet and performance history, please click here (PDF)

To view a full performance presentation for this product, please click here (PDF)

To read a Commentary for the Quarter Ending March 31, 2012, please click here (PDF)