We construct strategies designed for the pursuit of superior, risk-adjusted returns. Our approach leverages a full spectrum of opportunities, from traditional asset classes to carefully selected alternative investments. For qualified investors, these alternatives can serve as powerful tools for enhancing diversification and pursuing attractive, sustainable returns.
To suit your preferred level of involvement, we offer both discretionary and advisory portfolio management services. Whether you prefer to delegate day-to-day decisions to our team or maintain final authority in a collaborative partnership, our commitment to delivering a customized and sophisticated strategy remains unwavering.
Alternative investments include asset classes such as private equity, hedge funds, real estate, commodities, and real assets. In today's evolving landscape, this universe also encompasses digital assets like cryptocurrencies. These instruments are distinguished from traditional investments by their unique structures, often featuring characteristics such as reduced liquidity, limited transparency, and complex valuation methodologies.
When integrated with expertise, alternatives can serve as powerful tools for portfolio construction. Their historically low correlation to traditional stock and bond markets provides a potential hedge against volatility and a source of diversification. This can lead to more efficient portfolios and improved risk-adjusted returns over the long term.
Navigating this complex arena requires specialized knowledge and rigorous due diligence. At Hilm Partners, we leverage our deep experience to identify and access compelling alternative opportunities that are suitable for your specific investment objectives and risk profile.
Direct equities, commonly known as stocks or shares, represent foundational ownership stakes in publicly traded companies and are a core component of most sophisticated investment portfolios.
These securities are traded on regulated exchanges globally, from established markets in the United States and Europe to growth-oriented markets in emerging economies. This provides access to a vast universe of investment opportunities across sectors, geographies, and market capitalizations.
Equity ownership offers the potential for capital appreciation and dividends, derived from the underlying company's financial performance and growth prospects. However, stock prices are also influenced by a complex array of factors, including macroeconomic conditions, industry trends, interest rates, and currency movements, which may not always reflect the company's fundamental health.
Historically, equities have delivered compelling long-term returns, making them an essential asset class for building capital. Our approach involves rigorous, fundamental analysis to identify companies with durable competitive advantages, strong management, and the potential to generate sustainable wealth for our clients.
Private equity involves acquiring ownership stakes in companies that are not listed on public exchanges. This asset class provides capital to businesses at various stages of development, from early-stage ventures to established firms seeking transformation, and is typically accessed through specialized funds managed by professional firms.
These investments are fundamentally active. Managers work closely with portfolio companies to drive operational improvements, strategic shifts, and ultimately, to increase enterprise value. This hands-on approach requires a long-term horizon, as capital is typically committed for several years with liquidity achieved through a strategic sale, merger, or initial public offering (IPO).
Given their complexity, illiquidity, and substantial capital requirements, private equity investments are generally suitable for sophisticated, accredited investors. While they carry a higher degree of risk, including the potential for capital loss, they also offer the prospect of significant, non-correlated returns, making them a powerful component of a diversified portfolio for those who can bear the associated risks and illiquidity.
Real assets are physical or tangible investments that include commercial real estate, infrastructure, renewable energy projects, farmland, and even certain collectibles. Their intrinsic value derives from their physical properties and utility.
STRATEGIC PORTFOLIO BENEFITS
Including real assets in a portfolio provides three key strategic advantages:
- Inflation Hedging: Their value and the income they generate often adjust with price levels, offering a natural defense against inflation.
- Diversification: Returns from real assets have historically exhibited a low correlation to traditional stocks and bonds, helping to reduce overall portfolio volatility.
- Total Return Potential: They offer a dual-return structure, combining the potential for long-term capital appreciation with a steady stream of income from rents or leases.
CONSIDERATIONS AND ACCESS
A primary consideration is illiquidity; direct ownership often involves significant capital commitments and extended holding periods, making them unsuitable for short-term objectives. However, investors can access this asset class through liquid vehicles like Real Estate Investment Trusts (REITs), which offer lower entry points and daily liquidity while still providing exposure to real asset performance.
While subject to risks such as market demand and regulatory changes, real assets remain a compelling option for suitable investors seeking to build resilient, diversified portfolios with a focus on tangible value and income.
Hedge funds are specialist investments run by highly experienced managers that are designed to generate high returns by using intricate strategies, such as leveraging, short selling, and arbitrage. They invest in equities, bonds, commodities, and currencies with the goal of outperforming market averages, whatever the market conditions.
Hedge fund investment is typically only available for accredited investors and institutions, as there are substantial investment minimums and additional regulatory requirements involved that ensure investors are sufficiently financially astute and can tolerate and accept the risks involved.
While hedge Funds offer the potential for significant returns, there is a lock-in period, which reduces liquidity in favor of long-term gains.