Hedge Fund Awards 2016
HCP Black is a multi-strategy fund managed by CEO Tommi Kemppainen who develops this point in an exclusive interview with AI Global Media. “HCP Black aims for high risk-adjusted returns through active diversification. Instead of trying to buy as many assets within as many asset classes as possible, or analysing the historical correlation between securities, work is done on the fundamentals of each investment, estimating future returns and differences in risks to achieve as wide a diversification as possible” he explains, before giving a number of instances of the type of investments they deal with. Private Investors The biggest project in 2014 was launching the HCP Quant fund with Pasi Havia. “Pasi was the most widely read finance blogger in Finland, with his original approach to investing and saving, and his focus on increasing financial literacy. The launch of HCP Quant rebuilt this private investor partner group. Numerically this is our largest partner group, and measured in AUM it is also one of the most important. The service offering has also evolved to include a monthly newsletter and virtual meetings held by Pasi” details Kemppainen.
Company: Helsinki Capital Partners Name: Tommi Kemppainen Email: firstname.lastname@example.org Web Address: www.helsinkicapitalpartners.com Address: Kaapelitehdas inner court, Tallberginkatu 1 D 5th floor 00180 Helsinki, Finland Telephone: +358 9 689 88 481
Institutions The institutional partner group is built mainly on HCP’S work with Finnish foundations. This partner group differs from the private investor partner group in that the total amount of AUM is large but the number of individual clients is relatively small. “Working with the third sector (the non-profit sector) is an important part of our business. Ernst Grönblom is in charge of this partner group. Ernst has published papers on how foundations may optimize their investing to better support the purpose of the foundation. At the end of 2014 our institutional client base included six major charitable foundations as well as a large number of smaller investment companies (e.g. family offices)” Kemppainen explains. Professional Athletes Kemppainen then highlights that HCP offers a service for professional athletes that is “customized to take into account the athlete’s season and other aspects specific to their careers. Everything in the service is built to support the athlete’s life and performance. Great attention is paid to make sure that HCP avoids unnecessary disturbances of the athlete’s work and season. Timo Vertala is responsible for this partner group together with Josef Boumedienne, both of which have made a career in professional ice hockey” he Kemppainen explains. Artists “Our collaboration in cultural projects is mainly carried out on a pro-bono basis. The relationship with artists and cultural producers creates an interest in our values, reputation and economic performance. The whole process of collaboration defines the social responsible relationship of a company and the surrounding society. HCP listens, observes and investigates its surroundings and creates possibilities for artists and cultural producers on demand, when it seems that with a reasonable effort and limited amount of money HCP can enable an already very valuable project to thrive. Elias Koski is responsible for this partner group and works together with Farrél Boussir from #HCPSPIRIT Label.” The hedge fund industry is an incredibly diverse and fast-paced place to do business. How can HCP ensure they remain on the cutting edge of new developments are best placed to meet their clients’ needs? “We seem to have gained a reputation as a collective that is ready to look at all new ideas as long as they are in line with our values. This year we had two summer interns and one 14-year-old trainee and the third trainee will start at year-end. Many people wanting to pitch their investment strategies to us, in case we would want to start working on it together.” Working in such a competitive industry, how does HCP differentiate your business from that of your competitors? “Having all three HCP fund in the best 25% of their peer groups differentiates us from the rest. Within that group of 25%, all reflections from the strong values steering everything we do is an increasingly visible thing that also differentiates” Socially Responsible Investing (SRI) is the future HCP are working hard to gain more tools for responsible investing. “Currently 31% of HCP Black is impact investing and the 16% allocation into HCP Focus is following the negative screening method for SRI” Kemppainen explains. “For HCP Quant the challenge is that it holds stocks typically only six months and also focuses on small and midcap companies that do not typically find the resources for even reporting on sustainability. We are right now in a process to start a research project with an outside partner company to enable small and midcap companies to more efficiently and with less recourse communicate on the sustainability issues. This would enable us to test SRI through negative screening into HCP Quant funds multifactor model in some year’s time. The hypothesis being, that it would increase profits of this strategy” he adds. “It is naturally important to have our funds performing well. Best Multi-Strategy Asset Manager - Finland (HCP Black Fund). Still after reading your publication, I think that the way we have incorporated CSR into all we do through the #HCPSPIRIT work, is something that your readers would probably be even more interested to read about and also a theme that we very much like to talk about as it can work as a good example for someone and perhaps instantiate some new sustainable business models and some new sustainable financial innovations. Best New Sustainability Fintech (#HCPSPIRIT) is best explained on www.hcpspirit.com in the CSR Audit (GRI4) and ‘What is it’”.