Hedge Fund Awards 2015

Hedge Fund Awards 2015 www.acquisition-intl.com 21 Best Growth Equity Investment Manager - California Husic Capital Management Founded in 1986, Husic Capital Management manages the full capitalisation range of U.S. growth equity strategies, as well as several hedge funds. We spoke to Frank Husic, Managing Partner, to find out how the firm continues to generate superior returns for its clients Husic Capital Management is a fundamental, growth equity investment man- ager based in San Francisco, California. The firm was founded in 1986 by Frank Husic and has continued to successfully serve institutional and private clients for over 25 years. “There is no doubt that experience is the most important factor in explaining our success,” says Frank Husic, Managing Partner. “Our strongest skill set is being able to link and integrate the ‘35,000 foot’ thematic view with ‘boots on the ground’ stock selection across industries and sectors. We hope to be among the small number of people who can walk out of a meeting and see an idea, change or theme emerging that others don’t. Knowledge gained investing in different cycles and industries provides a leg up on analysing current and future opportunities. The objective is to realise multiples on our investment typically in names not generally known by the investment com- munity. This leads to generating superior rates of return for our clients.” “We believe that the best investment ideas and the greatest return potential come from thorough independent research and informed judgment,” Husic continues. “As an opportunistic growth manager, we strive to deliver exceptional returns for our clients. Our investment philosophy is based on fundamental, research-driven, bottom-up stock selection, which has been the cornerstone of our investment process since the firm’s inception.” Husic believes five factors drive superior returns: early recognition of fun- damental or secular changes at the company or industry level that will lead to revenue and earnings growth for our target companies; concentration in the greatest beneficiaries of those changes; the early identification of future stock market leaders; thematic orientation; and the sale of issues that have reached their potential or no longer exhibit the ability to do so. “By focusing on change, we develop an ‘edge’, or specific insight, into the companies that we select for investment,” he says. Examples of how this approach has translated into successful returns include investments in Cheniere Energy (LNG), American Airlines (AAL), and the Macau gaming stocks. “The U.S. Manufacturing Renaissance theme drove our Cheniere Energy investment,” Husic says. “Driven by the development and implementation of disruptive energy producing fracturing technology, the U.S. has moved toward energy independence. The abundance of natural gas is one of the outcomes with U.S. prices a fraction of those abroad. “Though initially built to import liquid natural gas when natural gas prices were cheaper overseas than in the U.S., Founder and CEO Charif Souki is now adding the infrastructure to export liquid natural gas from the U.S. now that the pricing differential has reversed. Cheniere is a unique company with experience in these multi-billion dollar infrastructure projects that result in 20-year production contracts. The value of identifying this management team, gained through our experience, resulted in a successful investment. “American Airlines is a successful example of our Phoenix Rising from the Ashes theme,” he continues. “Having simultaneously emerged from bankruptcy and merged with US Airways at the end of 2013, it is now one of the world’s largest airlines. Historically, the industry has been plagued by its poor investment returns. Reeling from a couple of recessions following the September 11 tragedy, the industry is now consolidating into an oligopoly structure. By rationalising costs including fleets, routes and labour, American is able to increase fares and profitability. The recent drop in energy prices provides an additional tailwind. “The Macau gaming stocks including Las Vegas Sands (LVS) and Wynn Resorts (WYNN) are successful plays on our Beneficiaries of the Rise in Consumer Incomes in Emerging Countries theme. On the island of Macau, the Chinese government created an oligopoly for a handful of companies. Despite concerns over the speculative nature of this venture, our experience with gaming stocks and these management teams proved extremely advanta- geous in the due diligence process. “Among numerous other successes of ours were United Online (UNTD) and Chaparral Steel (CHAP),” he adds. “We offer a long term track record of superior returns with an unlevered approach to portfolio management and a longer term perspective.” Husic says he came to California to 1980 when few saw California as the future of the country. “In line with our skill to be early in the anticipation of change, we accurately foresaw the importance of the U.S. West Coast as a driver of growth over the next 50 years. We have the best of both worlds here. We have a great combination of being in a vibrant financial community but not being enveloped by the disease of group think common in places like New York, Chicago and Boston.” Husic Capital Management’s continued success in generating superior returns for its clients has been recognised in the Hedge Fund Awards, with the firm being named Best Growth Equity Investment Manager – California. “This award gives us exposure to new and existing investors and enables us to help cast our net further and elevate our visibility in the industry,” says Husic. “We look for- ward to discussing our investment strategies with any potential new clients.” n Name: Frank Husic Email: [email protected] Website: www.husic.com Address: 555 California St. Suite 4925, San Francisco, CA 94104 USA Telephone: +1 415 398 0800 Contact: Tom Boster Email: [email protected] Fact File Best Growth Equity Investment Manager - California