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U.S. Large Cap Select

The U.S. Large Cap Select strategy is a concentrated strategy that starts with Russell 1000 constituents then adjusts for risk, accounting manipulation and quality.  It seeks to buy high quality companies at value prices.  To overcome the inadequacies of GAAP accounting, financial statements are recast to reflect intangible investments made through the income statement. Proprietary measures of economic profit and quality are use in the valuation process. 

Fact Sheet

Strategy History and Details

The U.S. Large Cap Select strategy is a concentrated strategy that starts with Russell 1000 constituents then adjusts for risk, accounting manipulation and quality. It seeks to buy high quality companies at value prices. To overcome the inadequacies of GAAP accounting, financial statements are recast to reflect intangible investments made through the income statement. Proprietary measures of economic profit and quality are used in the valuation process.

CHARACTERISTICS

Characteristics HBCM Large Cap Select Composite iShares Russell 1000 ETF
# of Securities151,012
Active Share97.200.00
Price/Earnings19.9927.68
Price/Cash Flow13.0018.71
Gross Margin67.72%52.43%
Operating Margin19.81%26.99%
ROIC13.27%20.53%
Net Debt/EBITDA-0.771.38
FCF Yield5.75%2.78%

SECTORS (% PORTFOLIO)

Information Technology 38.46%
Health Care 38.21%
Communication Services 9.83%
Consumer Discretionary 7.32%
Financials 4.85%
*Excludes Cash

TOP HOLDINGS (% OF PORTFOLIO)

Incyte Corporation11.90%
Exelixis, Inc.10.69%
Cirrus Logic, Inc.10.38%
Meta Platforms Inc Class A9.83%
Zoom Communications, Inc. Class A8.37%

MARKET CAP

Weighted Average Market Cap (B)$49.08
Median Market Cap (B)$4.10
Large Cap13.46%
Mid Cap33.38%
Small Cap51.82%

PERFORMANCE

Growth of $1,000,000

$5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 Mar '20 Jun '20 Sep '20 Dec '20 Mar '21 Jun '21 Sep '21 Dec '21 Mar '22 Jun '22 Sep '22 Dec '22 Mar '23 Jun '23 Sep '23 Large Cap Select - Net Russell 1000 Index

Annualized Returns

35% 30% 25% 20% 15% 10% 5% 0% QTR 1 YR 3 YR 5 YR Since Inception*
QTR 1 YR 3 YR 5 YR Since Inception*
0.66% 14.15% 28.40% 26.91% 30.52%
2.41% 17.35% 22.73% 13.59% 20.10%

Performance is presented net of a model investment management fee of 1% and is based on HBCM’s Large Capitalization Composite.

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