Hyperion (HYGG)
Would you sell Hyperion as price fluctuates almost 10-12 % - over 12 months has gained approx 12-15 % but has dropped as low as 4.75 recently
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Answer
Hi Roger,
The Hyperion strategy is a different one, and this can be shown through the composition of their portfolio. They typically make very big, concentrated bets on their top 5 positions which generally make up ~50% of their portfolio. For example, Tesla (TSLA) was/is ~13% of their fund, Amazon ~12%, Microsoft ~11% and so on, with a bigger tail of smaller positions thereafter, targeting 15-30 stocks overall, generally holding around 25 positions. When their top positions are performing, they can obviously generate strong returns, but this strategy lends itself to big swings in returns i.e. it’s not for the faint hearted. In the Market Matters International Portfolio for example, our largest position is ~6%.
Whether or not this is a strategy suitable for you, is not a question MM can answer, it comes down to risk appetite and willingness to accept the volatility inherent in the strategy. The Fund charges a 0.7% management fee plus a 20% performance fee, meaning the investor will end up paying quiet a lot for outperformance.
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Hyberpion Global Growth Companies Fund/Managed Fund (HYGG)
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Hyberpion Global Growth Companies Fund/Managed Fund (HYGG)
