Herald Investment Trust seeks to achieve capital appreciation through investments in smaller quoted companies, in the areas of technology, communications and multi-media. Investments will be made throughout the world. The business activities of investee companies will include information technology, broadcasting, printing and publishing and the supply of components, equipment and services to these companies.
There is no relevant benchmark, so a hybrid is used as a measure of performance, which is 2/3rd the Numis Smaller Companies Index including AIM in the UK and 1/3rd the Russell 2000 Technology Index in the US.
We have written a number of notes that explain how the fund works:
- “Patience and Power“, published on 13 November 2023
- “Efficiency savings“, published in January 2023, discussed the opportunity created by valuing valuations and good fundamentals
- “The future is bright” published in February 2022, covered the trust’s strong 2021 performance
- “Hot chips” published in November 2020, discussed the success of the trusts against the backdrop of COVID-19
- “Change is a coming” published in April 2020, focused on the life-changing impacts of the pandemic and how Herald was placed to benefit from this
- “Profits are only profits when they are realised” published in October 2019 updates on progress including a number of takeovers within the portfolio
- “Shifting sentiment”, published in February 2019, looks at how growth stocks and the tech sector feel out of favour with investors but a recovery in 2019 suggests that investors are returning
- “From small acorns… “, published in June 2018, notes how a small percentage of HRI’s diversified portfolio accounted for the highest return providing validation for the managers strategy
- “Who wants to be a billionaire”, published in December 2017, describes the rise of HRI and how they have created more than £1bn for investors since its launch
- “Backing growing businesses”, published in July 2017, looks at the rise of the technology sector and how they make up over half of HRI’s portfolio
- “Tech bids demonstrate value”, published in December 2016, talks about how HRI’s NAV is not reflective of the true value of the underlying companies and the expansion of major tech players
- “Investing in the future”, published in August 2016, looks at the first coverage of HRI as a major investor in the small-cap technology sector which has become cheaper relative to the broader market
You can access the manager’s website here