In my opinion Hugo is a very competitive character, and very versatile. However I think that a lot of people are not using Hugo to his fullest potential. The major reason for this is that many people insist on choosing gigas for his super. I think that this is not a good choice because not only is it impossible to land on certain players - it does not add anything new to him - its just a powered up 360 which he already has.
I have had a lot of dominance in the arcades I played in by using Hammer Frenzy almost exclusively. This gives Hugo very needed combo and stun potential and sets up lots of sneaky tricks. Some combos with this (not exclusive):
HAMMY FRENZY COMBOS AND STRATEGY
cross over splash (down fierce) low short super (if they block the splash high - its still worth trying the low short combo as no-one expects Hugo to have a link like this)
low short super - good when opponent is waking up as they expect a throw from hugo - must be close - good for mixup - now hugo can do an overheard - 360 - regular throw - or this
clap super - preferably F clap then J clap then super if you have time (missed or parried dragon punch) - notice this combo does 80% stun or so - if you connect a standing fierce elbow when they are waking up - your opponent is dizzied.
jump in roundhouse / fierce - super - crude but effective - if you can parry a ground attack anti air - you still have time to counter with your roundhouse after the parry and combo into hammer frenzy - this makes opponents afraid to anti air you allowing you to empty jumpin with a 360.
Hammer frenzy can reset and juggle for a few hits after a neutral throw followed by a jab or strong(with some characters) in the corner - no damage really but all the hits cause full stun damage
universal overhead can combo into hammer, but you have to be just far enough away so the overhead just barely nicks them - good against a crounching turtler
Hammer Frenzy makes a decent anti-air and pushes opponent in the corner which you want. No point in saving meter with this super as the bar charges really fast.
One strange semi-combo I like to do is the following - ultra throw (hit with a jumping roundhouse or other attack as they bounce back and activate hammer on the ground. You land before them so the hammer resets for a few hits and damage and you force them back in the corner, you may have to delay the Hammer for a bit as you run to where the falling corpse is then activate
One trick that is very effective is the following - a lot of times I will dash in with a 360 - usually with a jab to increase range - sometimes I will grab them other times they will throw out an attack and stop it - but sometimes with hammer frenzy I will dash in and activate the super as they start throwing out an attack - Hammer frenzy has almost the best invincibiliy start up in the game - so they will eat a super because they expected a 360 from me - I have caught lots of good players with this. Roughly half the time when I dash in close I will try the 360 - when they get used to it I start activating the hammer frenzy instead.
Also always try to make use of the delay feature of hammer frenzy - if you know you messed up and you know you will miss with it - just delay it by holding the punch button - usually the opponent will just throw you at the end or during the delay instead of supering you - other times you can delay for a split second and then activate and hope to catch them in an attack or throw animation - also delay if for some reason the opponent jumped over you so you run to the other side in relative safety. - also do not forget the delay and 360 at the end if your opponent forgets about this - sometimes you have to delay the hammer for a split second just to connect - if your opponent was forced back too far (double clap combo sometimes pushes them back a little to far if they were far away to begin with)
Doing a blocked ex clap followed by hammer frenzy does a lot of chip damage - and they must block or parry this.
Hugos claps have different recovery times when parried. If a jab clap is parried he cannot recover for most attacks - but if a fierce clap is parried for some reason Hugo has almost no recovery time - if your opponent has parried a fierce clap you may want to followup with Hammer frenzy as he is still flashing blue as he will probably be sticking out a normal attack - almost no one knows this who does not play hugo
Thats all I can think about with hammer frenzy
Other useful combos
clap + nearly any normal attack you can think of (slower normals require heavy claps) F clap and standing F can combo for riduclous damage and huge stun
clap + ex clothesline also F clap J clap ex clothesline (looks very flashy)
(other clap and normal short kick clothesline work but are not always reliable)
ex clap + shoot down back breaker
ex clap + ex or regular clothesline (flashy if you have ex to spare)
ultra throw + shoot down
Ultra throw + clap + shootdown in corner (have to fiddle with this, very character specific which combination to use) buts lots of damage and stun with this one.
ultra throw + dash and towards + fierce (the big swing does lots of stun)
ultra throw + ex clap (hits twice or so) + towards + fierce or shoot down - this is in the corner and looks flashy - if the ex clap hits three times I think you cannot followup with these options
Ultra throw + clothelines
a close crouching single jab can combo into hammer - but its very hard to do
fierce + roundhouse jumpin + jab chains
Use your 360 short kick grab move a lot - be able to do it on command - its Hugo’s rushdown and answer to the dash in throw that every one else has - every time you have someone in block stun its work a try (after a blocked clap or normal) - be unpredictable with it
Learn to parry well with hugo - in my opinion Hugo is ridiculously better if you can parry especially anti - air - follow all close ground parries with 360 or Hammer unless you expect a link to super
Parry opponent jumpins - 360 when opponent lands (basic and effective) - if they start jumping back out early - be ready with your short shoot down.
****Parry opponent jumpins - low short hammer as they land is pretty effective as well ***
TRANSPORTATION _ DEALING WITH HIS SLOWNESS
Use clothesline and roundhouse shoot down back breaker to cover distance quickly (always do in a way that you cannot be punished) prime example: when opponent in grounded and you want to be right next to him when he wakes up use a roundhouse clothesline or shootdown to greet him with a mix up when he gets up - sometimes I will do a clotheline just out of range for bait and activate Hammer frenzy as they throw out an attack - I have also used the roundhouse shootdown to leap over fireballs and fire ball supers and land right next to or behind the opponent where you have a second to 360 or super them you have to be in the air just as they are recovering from throwing the fireball. On some occasions when I had gigas they especially suffered.
If anyone wants some specific match up advice feel free to ask me.