December 1, 2023

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$4 Billion Illinois Team’s Mantra: ‘Stay Invested’

Group Title: HLM Cash Administration

Company: Wells Fargo
Advisors Financial Network

Senior Associates: Steven Hefter, Benjamin Leshem, Charles Margolis, Micah Nathan

Group Size: 9

Locale: Highland Park, Illinois

AUM: $3.8 billion

Track record: Fascinated in stocks from an early age, Steven Hefter established the workforce in 1983 after starting up at Goldman Sachs. Soon following relocating to Merrill in 1995, he teamed up with Margolis and Leshem, though Nathan joined in 2008. All four senior companions have been previously traders at Chicago exchanges. Although they have tons of legacy customers that have been with them for decades—mostly entrepreneurs—the partners also aim on setting up interactions with younger generations, whether or not they are new consumers or element of present family members relationships. One particular way they engage with clients is by bringing in investing experts and revenue supervisors to communicate at dinners or other events. “We tell purchasers: Use us as a sounding board, use us as an academic device,” says Nathan.

Competitive Edge: The team’s process revolves around the 4 senior partners assembly to ascertain portfolio strategy, which tends to be conservative with asset preservation as a major purpose. Suggests Hefter, “We can modify emphasis, methods and asset courses, but in the extensive operate we want consumers to keep invested in the current market.”

Financial investment Philosophy/Approach: In 2022, HLM Money lowered all round publicity to development, with the 4 companions now looking at the “value trade continuing to work” in 2023 as well as far more expenditure prospects overseas.

Amid the latest sector uncertainty, his workforce is altering client portfolios to be rather more defensive, with a renewed aim on multi-asset and worldwide fund professionals in distinct. “The sector is emphasizing valuations, which ended up incredibly large,” Hefter says. “If you glance back again to what was a increase calendar year for tech suitable before the dot-com crash, that was followed by various years of persons like Buffett accomplishing effectively in benefit. . . . I believe we’re in a identical environment where by tech valuations are coming back down.”

Financial investment Outlook: There are a good deal of good investments despite the sector uncertainty. “There are several possibilities in mounted income—you can now get a favourable return,” notes Leshem. In phrases of equities, the team likes firms with lessen rate-to-earnings ratios, big hard cash flows and long lasting earnings, as nicely as some worldwide exposure, given that that obtained “hit very first and most difficult.”

Most effective Guidance: “When the market place turns, it will be when people today the very least expect—and if you are not invested, it has traditionally been difficult to get back again in,” he suggests. Leshem agrees: “It’s not a cliché—usually the greatest returns manifest in the rebound from a large downturn.”