Value Strategy


HMC's Value strategy seeks to provide superior, risk-adjusted returns by investing primarily in a focused portfolio of fundamentally selected equity securities on both the long and short sides.


We employ a disciplined approach to securities and valuation analysis in an effort to uncover companies we perceive to be mis-priced by the marketplace. The core principles of the strategy are: a disciplined emphasis on absolute value; fundamentally-based analysis of investment opportunities; a focused portfolio; selective short-selling; and a long-term analytical view.

When determining a potential investment’s intrinsic or expected value, we perform fundamental analysis including financial statement analysis, industry analysis and an estimation of free cash flow generation. Value is typically determined based on these factors and selected valuation methods with the free cash flow capability of the given business over the long-term often taking precedent over other factors. In some cases, we identify these opportunities in special situations such as spin-offs, holding company discounts and stub positions where we attempt to capitalize on valuation dislocations resulting from corporate actions or structural complexity.

We also engage in selective short-selling in situations where we identify securities that we believe are unsustainably overvalued relative to our assessment of fundamental underlying value. While some of our short positions have direct or indirect relationships to long positions, we typically target individually selected, stand-alone shorts that we believe will contribute positively to returns over the long-term.

Investment Team

Todd D. Nunnelley, CFA
Senior Managing Director

Todd Nunnelley

Mr. Nunnelley is the Senior Managing Director of the General Partner and leads the HMC’s Value Fund investment team. Since 1999, he has held several positions within HMC, including Director of Risk Management for the firm’s hedge fund assets from 2003 to 2007. Additionally, from November 2005 to March 2007, Mr. Nunnelley managed an investment portfolio employing a strategy consistent with the strategy employed by the Value Fund. From 1999 to 2003, Mr. Nunnelley held positions which were focused on analyzing and managing investments in value-oriented strategies. From 1997 to 1999, Mr. Nunnelley worked as a Corporate Finance Analyst at The Robinson-Humphrey Company. Mr. Nunnelley is a CFA charter holder and holds a Bachelor of Science degree in Commerce & Business Administration from the University of Alabama.

Zachary P. Turnage, CFA
Director of Research

Zach Turnage

Mr. Turnage is the Director of Research for the HMC’s Value Fund investment team. Prior to joining HMC in October 2007, Mr. Turnage was Portfolio Manager & Equity Analyst for the Retirement Systems of Alabama (“RSA”). In this role, he co-managed the RSA Small Cap Active Portfolio and held research responsibilities for numerous sectors. From 2003 to 2005, Mr. Turnage was employed with Westwood Holdings Group, where he held the position of Assistant Vice President, served on the Small Cap Value portfolio management team, and worked as an analyst supporting all of the Westwood Equity Portfolios. Prior to Westwood, Mr. Turnage held various positions with AmSouth Asset Management Company including Portfolio Manager for the AmSouth Value Opportunity Portfolio and as an Equity Analyst for its value team. Mr. Turnage is a CFA charter holder and holds a Bachelor of Science degree in Business Administration from Samford University and a Master of Business Administration degree in Finance from Auburn University Montgomery.  Mr. Turnage currently serves as Board Chairman for the Samford University Brock School of Business Economics, Finance and Quantitive Analysis Advisory Board.  Mr. Turnage is a former President and Board member of the CFA Society of Alabama.


Clayton C. Williams, CFA
Senior Analyst

Clayton Williams

Mr. Williams is a Senior Analyst for the HMC’s Value Fund investment team. From 2004 to 2008, Mr. Williams was a Credit Analyst at Martin & Company, a regional investment firm in Knoxville, TN with over $2 billion in assets under management. At Martin & Company, Mr. Williams was responsible for credit research for the firm’s corporate bond portfolio as well as for analytic and portfolio management duties for municipal and Treasury Inflation Protected Securities accounts. Mr. Williams is a CFA charter holder and holds a Bachelor of Science degree in Business Administration from the University of Tennessee, Knoxville and a Master of Business Administration from Columbia Business School.



2100 Third Avenue North, Suite 600
Birmingham, Alabama 35203