COLLEGE PLANNING | ESTATE PLANNING | INVESTING | PORTFOLIO SPOTLIGHT | REAL ESTATE | RETIREMENT | TAX PLANNING
Huber Select Large Cap Value Fund
TICKER ASSETS
HULEX $ 314.4 million
PERFORMANCE |
1 yr . |
3 yr . |
5 yr . |
10 yr . |
|
16.37 % |
10.66 % |
13.38 % |
10.63 % |
TOP 5 HOLDINGS
CONTACT INFO
Upbound Group Inc .; Citigroup Inc .; Eli Lilly & Co .; KBR Inc .; Bank of America Corp .
888-482-3726 • hubercap . com
EQUITY SECTOR ALLOCATION ( As a % of portfolio ) Financials 25.78 % Industrials 16.59 % Energy 14.43 % Consumer Discretionary 10.85 % Healthcare 10.15 % Information Technology 7.80 % Consumer Staples 6.34 % Communication Services 4.31 % Materials 2.25 % Utilities 1.50 %
Performance numbers , asset numbers and holdings as of 12 / 31 / 24 . Sources : Huber Capital Management and Morningstar .
Using Investors ’ Quirks To Find Value
Joe Huber ’ s behavioral investment approach has been a winner for the Huber Select Large Cap Value Fund . By Jeff Schlegel
JOE HUBER ’ S INVESTMENT APPROACH HAS GENERATED benchmark-beating returns on a fairly consistent basis during the entirety of the 21st century — but it had humble beginnings as an idea from one of his graduate school professors at the University of Chicago in the mid-1990s .
Huber became intrigued with the idea that people make cognitive decision flaws while not understanding that they ’ re making them . “ It ’ s true across education , IQ , race , socio-economic background ,” he explains . That causes them to do things like misprice securities , and that quirk in investor behavior plays into his approach to finding the valuation of companies , he says . Huber says the light bulb moment for his investment approach came when he took a class in 1995 with Richard Thaler , the professor who 22 years later won the Nobel prize in economic sciences for his contributions to behavioral economics .
Of his own approach , Huber says , “ At the 10,000-foot view level , our process marries fundamental analysis — what the company is worth — and behavioral psychology — why is it being mispriced ?”
He posits that one of the behavioral biases that humans have is the tendency to extrapolate the present into the future , which can lead to flawed investment decisions about when things revert to the mean . So when a company hits a rough patch with an earnings shortfall or other bad news , many investors bail on it because they think the short-term tumble is the start of longerterm trouble . And they lose out if a company corrects course and its stock price rises .
Huber continued to educate himself on behavior psychology after he earned his MBA and later joined Goldman Sachs Asset Management in New York as a portfolio manager .
“ I recognized that while this was interesting from a theoretical perspective , nobody had yet to apply it to the investment process in asset management ,” he says . In 1999 , he left Goldman for Hotchkis & Wiley in Los Angeles ( when it was a part of Merrill Lynch Asset Management ) and it was there he was given the green light to build an investment process that marries behavioral psy-
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