How We Manage Money
Investment Process

Our three step process encapsulates our philosophy by carefully screening out all but the highest quality companies and constructing benchmark insensitive portfolios from the remaining 'universe' weighted according to risk adjusted 5 year total returns.

High Conviction Portfolio of Stocks

Screening of the entire Australian equities market via a number of quantitative filters ensures companies with poor economics are eliminated. We then undertake detailed analysis of a company’s business model including a critical assessment of its:

Hyperion believes the detailed review of a company’s accounts assists us in understanding the key drivers of the business.

Our investment process requires a strong link between the historical circumstances that enabled financial results to be achieved and likely future circumstances affecting the company’s future financial performance such as the:

In addition to Hyperion’s detailed and stringent quantitative process we regularly meet with the management of the companies in which we invest. Hyperion’s investment team conducts at least 200 company visits and reviews each year.

We are benchmark insensitive, but understand the risks of our high conviction positions. For us risk is not simply a deviation from an index but the extent to which a company does not meet our earnings estimates. If a company does not pass our hurdles, we don’t hold it.