Frequently Asked Questions

Who is Enrique Abeyta?

Enrique founded HX Research in 2024 after five years of building newsletter publisher Empire Financial Research with his partner Whitney Tilson at Stansberry Research.

Enrique has had a 25+ year career as a professional investor. He was the founder and managing partner of two long/short equity hedge funds – 360 Global Capital and Stadia Capital – where he served as Managing Partner and raised $2 billion in assets. He was also a member of the launch team at Falcon Edge Capital (now Alpha Wave), where they raised over $3 billion in assets.

In addition to his experience as a newsletter editor and professional investor, he has a long history as an entrepreneur and private investor, having founded 10+ companies in media, music, entertainment, and tattooing.

Learn more about his experience here on Enrique’s LinkedIn

What is HX Legacy?

HX Legacy is an INVESTING strategy.

This strategy is based on my 30 years of investing as a portfolio manager, picking stocks, and managing risk. We have put the best of what I have learned through these three decades into this strategy.

This is why we call it "Legacy". This strategy is my investing legacy…

We are looking to hold positions for a more extended period (years) and look through market volatility.

Can you explain our strategy in one sentence?

Our investment methodology is focused on finding ideas with at least a 3-to-1 risk/reward and a minimum potential return profile of +100% (a double) across three years.

From a strategy perspective, we embrace all strategies including growth, value, spin-offs, etc. For our ideas, though, we are looking for stocks you won't hear about on CNBC!

A lot is packed into those sentences, and we encourage you to read our HX Legacy Primer for more details.

I’m new to HX Legacy.  Where should I start?

We highly recommend that you check out our HX Legacy Primer. This walks you through our investing strategy in detail and is a great place to learn about it and investing. After that – dive right into our most recent issues and updates.

When do you publish HX Legacy?

We publish once a month on the third Thursday.

We also may issue additional investment recommendations at any time. If there are great ideas out there, we want to share them with you!

What types of securities do you recommend?

The strategy only recommends options on liquid stocks and ETFs that are easily buyable with any brokerage account.

Will you be making short recommendations?

Enrique has had a long and successful career as a short seller. Still, HX Legacy is focused only on long positions. We manage risk through position sizing and eliminating positions.

How many recommendations are in HX Legacy?

Typically, we only have up to 25 open recommendations.

Since we have long-term holding periods, there may not be much change in the names recommended.

As we progress in the strategy (in a couple of years), we will look to "force curve" the ideas. This means only putting a NEW idea into the strategy if it is better than the least attractive idea. The goal is to have at most 25 to 30 open recommendations.

When do I buy and sell these recommendations?

We will guide you on when to buy and sell the recommendations.

We will also recommend trading "around" the position to manage risk and volatility.

You can stick with a straight "buy-and-hold" strategy around the position or take advantage of our position optimization trading recommendations. It is up to you.

What is your exit strategy?

We do employ an "alpha-based" stop loss where we look at any losses in a position relative to the overall stock market. Triggering this signal forces us to reassess the position.

The “alpha-based” stop loss is our price-based methodology. Still, we also employ a rigorous fundamental stop-loss strategy. If the thesis has changed and the position no longer fits our investment goals, we immediately close the position.

We discuss this in depth in the HX Legacy Primer.

How much should I invest in each trade?

Position sizing based on our recommendations is a personal choice.

Each idea starts with a recommendation about "core" position sizing. We will then issue updates based on changes in both price and fundamentals. Our goal is to help you both optimize returns and manage risk.

Where can I find your current recommendations?

The HX Legacy portfolio is available right here.

What is the goal of the strategy?

Through time, the goal of the strategy is to generate a material positive absolute return (double-digit) while managing risk and volatility during down markets – outperforming the indices during them.

What is the “VWAP” that you use for reference prices?

This is the “volume weighted average price” for the day after we make a recommendation.

We can't take credit for significant gains that none of our readers could have benefitted from, so using the VWAP is the fairest way to measure reference prices.

How much money do I need to get started?

You can use this service with as little as $10,000 in starting capital.

Is HX Legacy a “buy and hold” strategy?

Absolutely! At its core, we are making recommendations of stocks that can be held for many years.

Additionally, we provide guidance to our readers on managing risk and volatility across the market cycle.