Our private client portfolio management team is now in our 43rd year of practice. I am writing a special letter to reflect on some of our recent history as we celebrate several exciting milestones and announce a change to our team name.
Nine years ago, just a year before my father, Eddie, retired, I formalized our family managed flagship equity strategy.
The initial and primary goal was increasing efficiency and scalability. With new access to an institutional portfolio management platform, we were able to unify all of our client portfolios so that when an investment decision was made, the resulting action would be executed for all of our client assets collectively in an equitable fashion: at the same time and at the same price. There would be an alignment of interests that was conflict free. With that in place, the secondary goal was to re-allocate my time and resources. We knew we had a unique investment formula, but to keep delivering at an optimal level on a sustainable basis required more time devoted to macro analysis, old-fashioned micro research, and of course, surgical execution. Knowing that if we were able to achieve the first two key goals, it would allow for a third goal to fulfill itself which was to allow for more capacity to help and serve others who were looking for a better way to invest.
Fast forward to today, with a full economic cycle under the formalized strategy’s belt, we achieved all of those goals we initially set out, plus more. During this time, while the benchmark stock market indices experienced negative returns in two out of the past nine calendar years, our Hui N. American Large Cap equity has yet to post a single negative calendar year while remaining fully invested. It’s one thing to tell people we invest conservatively, but the true stress test for our approach was to be able to preserve capital and “win by not losing” by navigating through all these global geopolitical events and crises during the past decade:
• 2012: European debt worries / U.S. fiscal cliff
• 2014: Oil prices begins its 20 month collapse from $107 to below $27 a barrel
• 2015: Greece debt crisis, China slowdown, Paris terrorist attacks
• 2016: Brexit referendum, Trump / Clinton U.S. presidential election
• 2018: U.S. / China trade war
• 2020-2021: Covid-19 global pandemic
As of March 31st, 2021, the gross, annualized, compound performance of our Hui North American Large Cap (NALC) equity strategy:
1 Year: 30.8%
3 Year: 12.6%
5 Year: 13.5%
7 Year: 11.8%
Since inception (Jun 2012): 13.3%
This mandate surpassed the $200 million CAD equivalent asset milestone this quarter. (Hui NALC is a dual currency investment strategy: CAD & USD).
Our clients who invested $1,000,000 in this strategy just under 9 years ago now has over $2,600,000, net, to their name today.
For many years, investors who subscribed to our approach asked if we had a pure USD denominated solution. In response to that demand, I launched the Hui U.S. Resilient Opportunities (USRO) equity strategy almost five years ago. The gross, annualized, compound performance as of March 31, 2021:
1 Year: 49.6%
3 Year: 16.0%
Since inception (Nov 2016): 16.3%
* These returns are presented in USD terms
Throughout, we achieved these returns in the right way. We became increasingly mindful in the way we invested. This was never set out to be an ESG (environmental, social, governance) investment mandate. However, we always abided by our own moral compass and the personal values instilled in our DNA: grow wealth while doing right by society. This strategy has never invested in gaming (casinos), cannabis, tobacco, alcoholic beverages, or defense (weapons manufacturing) businesses. And midway through this journey, we also decided to not to invest in energy or mining anymore. Investment markets have so much to choose from. If we can invest in a manner that is rewarding yet socially responsible and sustainable, then that is the optimal balance we should strive for.
We are very excited to announce that we are rebranding our team name to Hui Portfolio Management. Due to previous restrictions, our team name choice was limited. Hui Financial Group was ok, but to be honest, I have never been very keen on the name from the onset. It wasn’t concise in telling our audience what our core specialization is. Does the group offer financing, mortgages, investments, or life insurance? While we certainly have access to these areas through collaboration with our partner colleagues, Hui Portfolio Management (HPM) is clear and accurately reflects our primary and niche offering.
The big milestone announcement is that on the last day of this quarter, our team crossed the $500 million mark in total assets under management. At any given point in time, asset milestones are not something we collectively aim to target as a goal. In itself, it’s just a number. However, what it does meaningfully symbolize is that we are doing something right and unique here that the investment community resonates with. For that, I am very proud of our team’s determination and hard work.
I would like to give a heartfelt thank you to the select number of families we serve around the world, for both the opportunity and for your unwavering confidence in entrusting your family’s financial journey with us – some of who are now 4th generation clients. Thank you.
Justin Hui, CPA, CGA, CIM
First Vice-President, Portfolio Manager, Investment Advisor
CIBC Private Wealth Management
CIBC Wood Gundy
Hui Portfolio Management
Hui Portfolio Management specializes in discretionary investment management for individuals, corporations, foundations, trusts and estates, starting at $1,000,000.