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Investment Management

A research process that has been refined since the 1960's

The Hodges investment philosophy revolves around the belief that every company has positives and negatives—we look for both. We take pride in conducting our own in-depth research, often starting at the source through direct contact with management teams. We balance this against objective fundamental analysis to form an investment thesis on a stock. Our team of analysts cover a broad range of industries to gain greater perspective on the particular strengths and weaknesses of various industries.

Collectively, we are following hundreds of companies at any given time. We monitor, analyze, and dissect each one before the appropriate investment decision is made. We dig deep to understand what is really happening with a company's business and then size up how it is currently perceived by the market. Hodges believes successful analysis requires the diligence and skill to uncover the fundamentals, but also the common sense to gauge market psychology.


Our Process

Portfolio Managers

Portfolio Managers & Analysts


Goal: Gather as much information as possible and be able to see risk premiums rotate

  • Analysts are information gatherers for the portfolio managers
  • Analysts are generalists with emphasis on certain sectors
  • Constant communication between the portfolio managers and the analysts is a key ingredient to the process

Idea Generation

Goal: Identify companies where market perception may be different from reality

  • Conversations with company management teams
  • Discovery while doing research on other companies within the coverage universe
  • Travel, company visits, and conferences
  • Sourcing ideas is a responsibility of both the portfolio managers and analysts


Idea Generation
Conviction Through Analysis

Conviction Through Analysis


Goal: Identify a company with unrecognized growth prospects and/or misunderstood value

  • Develop an understanding of key investment merits by visiting with management, customers, vendors, competitors, and various industry sources
  • Each company is evaluated independently
  • Identify a catalyst that will likely unlock hidden or intrinsic value
  • Develop a theoretical upside and downside and weigh risk/reward

Buy & Sell Decisions


Goal: Avoid group think, make timely decisions, and constantly own companies with attractive upside potential

  • Constant evaluation of the upside potential relative to downside risk
  • Weightings based on level of conviction, beta, potential downside protection, and catalyst events
  • Sell when the risk/reward proposition is no longer attractive
  • May opportunistically reduce position size when the stock price makes a quick run
  • Use cash opportunistically and add to names in which we have a continued conviction


Buy and Sell
Portfolio Construction

Portfolio Construction


Goal: Take advantage of periods of inefficiency within a sector or the asset class

  • Concentrate the number of holdings in the portfolio during a market pull back
  • Concentrate the number of holdings in the portfolio within a certain sector during a sector pull back
  • Attempt to spread out risk during frothier markets by adding to the number of holdings
  • Entirely focused on security selection and indifferent to benchmark sector allocations



"The Hodges investment team is constantly evaluating the upside potential relative to downside risk. We believe that evaluating the intrinsic value of a business potentially limits downside risk"

Eric J. Marshall -Co-Chief Investment Officer, Portfolio Manager, & Director of Research

Our Approach




Every investor has unique needs. Some want growth or cash flow, others want to avoid certain industries or companies. At Hodges Private Client, investment management starts with you. We take the time to understand your long-term goals and specific needs. Only then can we create a portfolio recommendation that focuses on your goals and adapts as markets change.



Many investment advisers stick to one style of investing, such as growth, momentum or value. But what happens when their style falls out of favor? That’s when narrow specialization could hurt your portfolio returns. Hodges Private Client prefers a flexible approach that can adapt with our forward-looking market views.



You deserve a manager who does more than just pick stocks. Hodges Private Client meticulously analyzes markets and then identifies the most attractive investment categories. Our thorough approach yields results over time.

Hodges House
Our Team
Conference Room 2-1-1
Hodges University

Horse Sense, Street Smarts.

Brevity is one of the most important attributes of effective oral, written, and visual communication. Since the dawn of time humans have revered communication that is concisely worded to make an impactful statement. A well-worded quote can be something we remember for life and could even become one of our guiding principles.

Don Hodges, the original founder of our company, spent 40 years compiling quotes from various sources. These quotes have been spoken by folks from all walks of life; broadly famous to barely known. Yet, they all share one unique theme….they make common sense!

We would like to share these special words with you.