July 2020 | Posted By Nell Schiffer

If you’ve been hunting around our website recently, you might have noticed a link to our Client Relationship Summary (Form CRS).  This new regulatory document helps investors answer the question, “Is Hill Investment Group the right investment advisor for me?” It’s aimed at anyone who is curious how we can help. 

In our opinion, it’s a great move by regulators. It makes important information about advisors and broker-dealers crystal-clear, like fees, services, disciplinary information, and their fiduciary obligation (audio clip). As an existing or prospective client, we encourage you to check it out. You might learn something about us you didn’t know before, maybe even ways in which we can be more helpful to you!

July 2020 | Posted By Scott Krajacic

 

After 10 years of large companies earning record-breaking returns, any reasonable investor would start to wonder, are small companies even worth hanging on to? We argue yes. Why? Because evidence shows owning small companies pays you more over time and helps your portfolio recover better after a downturn, but only if you have the patience to wait. 

Higher expected returns. Evidence shows that small companies have historically outperformed large companies over the long-term. The reason? The market perceives small companies as riskier investments. The extra return you get is the market paying you for taking on that risk. If you think about it, this is intuitive. A simple example: would you lend money to the mom-and-pop diner down the street at the same interest rate as you would to McDonald’s? Of course not. You recognize the additional risk inherent in the smaller, less established diner compared to the more stable, global, fast-food chain.

Stronger recovery after a market correction. When the market declines, small companies tend to perform worse than the general market, and investors may start to question if this asset class is one worth hanging on to. The biggest concern we hear is that smaller companies have less capital and cash flow to weather the economic storm thereby making their recovery painfully slow. In reality, small stocks have a tendency to come back stronger and faster after a significant market correction. The data in the table below suggests a healthier small company recovery (Russell 2000) compared to large (S&P 500) over three of the largest market downturns in the last 40 years. 

Data generated using returns data from Dimensional Fund Advisors Returns database. Please note the performance data uses monthly calculations and does not signify the exact day of the corresponding market bottom.

The role of patience. The additional return you get for owning smaller companies can materialize at any time. But we know, especially in times where large has outperformed small for a decade or so, having the patience to wait can feel next to impossible.  This is where the role of an advisor is key.  It’s only natural after years of underperformance to want to bet on whatever feels like the winning horse. Without having someone to hold our hand any of us, including professionals who know better, have a hard time waiting it out. Our take on all of this: While we see many non-client investors run from small stocks, this as an opportunity for our clients to buy what’s on sale and reap the long-term rewards of remaining disciplined. 

July 2020 | Posted By John Reagan

Image by Carl Richards for The New York Times

The New York Times Sketch Guy, Columnist, and Take the Longview podcast guest Carl Richards, is one of the best in the world at connecting money and emotion. His unique ability is boiling down ideas to their essence so that everyone can relate. In a recent piece, he does it again, clearly outlining a 5-step guide to making it through the ups and downs of the financial market. Check it out here.

July 2020 | Posted By Katie Ackerman

On July 1 we celebrated one year with Matt Luzecky on our team. As Matt Hall likes to say, it typically takes at least three years for a team member to be truly valuable, but Luzecky is way ahead of schedule. His contributions to Hillfolio growth, our Client Service team, and integrating our new CRM software have been outstanding. Matt’s quick wit and constant smile are traits we all love. Learn more about Matt.

July 2020 | Posted By Buddy Reisinger

In his recent piece about investor behavior, Wall Street Journal Columnist, Jason Zweig profiles real investors who took the long view in the int first half of 2020. “Markets Bombed, Investors Carried On” reminds us why maintaining self control in a volatile market is key for long term success. Our favorite quotation? Arlyne Willcox said, “My experience in 2008 told me: Stand still, be patient, take baby steps so you don’t overreact but feel like you did something.” We couldn’t have said it better ourselves. You can check out the rest of the piece here.

June 2020 | Posted By Katie Ackerman

Coming out of quarantine, our team came together (for the first time in a long time) to celebrate HIG’s 15 year anniversary and have fun while maintaining some social distancing. Matt & Lisa Hall hosted the poolside celebration at their home.

Rick and Matt toasted to the next 15 years and were given a set of crystal glasses (the traditional 15-year gift) by the team. Just as things seemed to be wrapping up – John Reagan was thrown into the pool by the client service team! Since Hill is a real team, everyone  joined in the fun – all 12 of us, took the plunge in our clothes!

The team was gifted shirts to commemorate HIG’s anniversary.

June 2020 | Posted By Abby Crimmins

Last week, the New York Times featured photographer Gray Malin in their business section, but just a few weeks before that, he sat down to talk to Matt Hall as a guest on the TLV podcast. Photographer Gray Malin creates iconic images synonymous with travel. His work has taken him all over the world. In this episode, he shares stories behind select images, including how it took three years for his vision of photographing painted sheep to come to life and the surprising thing that happened during the shoot that took the images to the next level. Gray Malin’s views from above give a unique perspective. Hear about his first job in Hollywood, what inspires him and where he wants to travel to next.

Girl in Pink, Bora Bora

June 2020 | Posted By Nell Schiffer

Race and power are front and center in conversations happening (or not happening) around the world. There is so much we’d like to say, but for now we think it’s most helpful to highlight one of the voices who says it best. If you watch one thing today, we think it should be this 14 minute Ted Talk from Mellody Hobson, a finance boss who nails it.

Watch Hobson’s classic 14 minute Ted Talk by clicking the image below, and should you find yourself loving Mellody the way we do, keep exploring her wisdom here or here.