-sponsored strategies have averaged an aggregate S&P 500 index for the same period. 1. HMC would be an absolute return investor. “After all, you can’t buy anything with relative returns.” 2. HMC would be a fundamentals-based investor — expressed through asset-by-asset, bottom-up analyses, not macro themes or momentum-drivenquantitativemodels.“Ifwecouldn’tunderwrite and understand an investment to our total satisfaction, we wouldn’t make it.”   3. HMC would control risk through disciplined diversification, across asset classes and within asset classes. “Call it our take on Modern Portfolio Theory.”  4. HMC would have a strong alignment of interest with its clients — through the substantial commitment of capital by its shareholders and employees in its investment products. “We invest in our products on exactly the same terms and conditions as our clients.” 7