Investing in visionaries
By Leslie T. Snadowsky
Bruce Wood has vision.
The founder and managing partner of Hilton Head Capital Partners (HHCP) opened his registered investment advisory, fee-only fiduciary firm (RIA) in 2017 when he left Wells Fargo Advisors after 44 years as a banker and wire-house advisor.
He entered the independent portfolio management world to offer his clients expanded estate and trust investment solutions, flexible customized portfolio management, fee flexibility and custodial alternatives, as well as prompt personal support and attention, and extensive resources through strategic partners.
Thomas Fox, managing director of WaterStreet Research Partners, and HHCP’s chief investment strategist and portfolio consultant and strategist, said, “I think all CEOs are visionary to different degrees, but the most important thing is their track record.”
HHCP is not a stockbrokerage and it doesn’t recommend investment products for a commission. Instead, the company focuses on clients’ goals to establish long-term investment strategies through its fee-only-based portfolios. It designs portfolios to meet clients’ unique investment needs, working with tax, insurance, legal and estate planning professionals to create customized portfolios designed around clients’ wealth goals and long-term family objectives.
Fox said while some investors favor companies they believe in and make products they use, it should only be a small consideration when jumping in to invest. “The most important things are the fundamental characteristics of the company and whether it’s doing well against its peers,” he said.
Industries that investors are considering today include biotechnology, artificial intelligence, home technologies, on-demand services, green energy, healthcare and pharmaceuticals, telemedicine and cybersecurity. Fox said for long-term speculative investment, investors should consider electric vehicles (EV), their manufacturers and battery companies.
Fox, who has more than 30 years of experience in the investment business and more than 26 years as a chief investment officer, is an expert in building quantitative investment approaches. He is the creator of numerous successful academically based investment strategies. Fox also has experience in managing large institutional funds, including two mutual funds, and has presented proprietary research to the Federal Reserve Board’s investment committee.
While many investors want to believe and invest in the passion of business “celebrities,” data and science trump emotion.
Fox said it’s risky to invest in a visionary company when vision and fundamentals do not align.
If clients are looking for visionary investments and money management firms to help them invest their money, Fox said, “I think disciplined money management firms should be the focus.”