Investment strategies

The Investment Team offer six proprietary investment strategies to institutional clients and can develop tailored portfolios for RIAs, Investment Advisors, and Family Offices.

We build equity portfolios using quantitative and qualitative investment processes, concentrating capital in the best businesses that are trading at a discount to intrinsic value. Portfolios are diversified across industries, sectors, business models, and geographies within each investment portfolio.

The firm's Investment Philosophy is rooted in owning high quality businesses.

U.S. Large Cap

U.S. Domestic equities with market capitalization typically over $20 billion. 30-35 Stock portfolio with >80% active share relative to S&P 500 Index.

U.S. Small and Mid Cap (SMID)

U.S. Domestic equities with market capitalization between $5 billion and $20 billion. 20-30 Stock portfolio with >95% active Share relative to Russell 2500 Index.

International ADR

10-20 American Depository Receipts (ADRs) and foreign companies listed on U.S. equity exchanges comprising a portfolio with >95% active share relative to MSCI ACWI ex. U.S. Index.

U.S. Systematic All Cap Core

Portfolio of 40 businesses selected using a selection model comprised of four (4) distinct sub-strategies, emphasizing company quality, valuation, growth, insider ownership and other attributes. Model searches for best risk/reward across all investable stocks in the Russell 3000. Portfolio exhibits active share >85% relative to Russell 3000 Index.

U.S. Systematic Large Cap Deep Value

Portfolio of 8 - 12 companies selected from Russell 1000 trading at a valuation discount after adjusting for risk, accounting manipulation, and base level of quality. Valuation metrics are proprietary to Heron Bay Capital Management. ~98% active share relative to Russell 1000 Value Index.

U.S. Systematic Small Cap Core

A portfolio of 40-60 businesses selected from the Russell 2000 Index utilizing three (3) sub-strategies that emphasize company quality, valuation, and business growth. Portfolio exhibits >95% active share relative to Russell 2000 Index.