Hodges Financial Group

Hodges Financial Group

Founded in 1989 by Don Hodges, the Fort Worth-based firm grew out of a career that included stints at Rauscher Pierce Refsnes and First Dallas Securities. Don Hodges launched the Hodges Fund during a period of regional economic recovery, drawing on a network of Texas business relationships that shaped the fund's early portfolio concentration. His son, Craig Hodges, joined the firm in the late 1990s and now serves as co-portfolio manager alongside his father, marking a direct generational transition in both leadership and investment philosophy. The firm manages a family of no-load mutual funds anchored by the flagship Hodges Fund and the highly concentrated Hodges Small Cap Fund. The equity strategy is defined by concentrated bets — often 40 to 50 total holdings — with the conviction to hold single positions above 5% of total assets. Sectors historically overweighted include energy, regional banks, homebuilders, and transportation. Confirmed large holdings across recent portfolio disclosures include Texas Pacific Land Corporation, Matador Resources, and Builders FirstSource. Geographic coverage skews heavily toward Texas and the Southwest, though the mandate does not formally restrict national exposure. Team size remains deliberately lean, operating from a single office in Fort Worth. The firm expanded its product line in 2012 with the launch of the Hodges Small Intrinsic Value Fund, a vehicle designed to capture smaller-cap opportunities that the flagship fund had outgrown. In August 2012, the firm reorganized its fund complex under a single trust structure to streamline compliance and shareholder reporting. No separate philanthropic foundation or alternative vehicle is publicly disclosed under the Hodges brand. The structural differentiator is the father-son co-portfolio manager arrangement, a governance model rare in the registered fund industry. Rather than an advisory committee or external analyst team driving decisions, the two Hodges share a single concentrated investment view informed by a shared history of Texas economic cycles. This dual-generational partnership creates a natural succession mechanism while preserving the original stock-picking posture that defined the firm's founding.