HX Legacy Position Update

The best investors employ a “stop loss” discipline to mitigate their losses in their holdings.

If you have had the chance to read our HX Legacy Primer, you will read how we employ our stop loss at HX Legacy.

While most investors look mostly at price, we are most interested in the operational momentum of our long-term holdings.

We are willing to look through drawdowns in the stock price if we think the long-term opportunity for the company remains.

With our GROWTH positions, however, we are also sensitive to the near-term operating momentum.

We don’t mind paying a big valuation multiple for a stock if the company has 1) a great growth opportunity and 2) is beating and raising numbers.

Even if #1 is true, though, if the company no longer is executing in the short-term – we will close out the position.

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