The Herald Worldwide Technology fund (HWTF) seeks to achieve capital growth by investing principally in securities of issuers in the technology, communications and multi-media sector which in the view of the Investment Manager offers potential growth in excess of the average. Herald invests, generally on a long-term basis, using fundamental analysis.
HWTF predominantly invests in large cap and highly liquid companies. This remit distinguishes it clearly from the Herald Investment Trust, which focuses on small cap companies.
The Investment Manager believes this area of the economy offers growth greater that the world economy as a whole and presents many attractive investment opportunities.
Herald’s sole focus on technology enables a significant degree of cross-referencing across competitors, customers and suppliers globally. By combining this mosaic of information with strong financial analysis we endeavour to add value. The evolving nature of technology means there is a wide divergence of performance between winners and losers, but the winners can be spectacular.
Key emphasis is on management and governance. Within the sector there are a large number of entrepreneurial founder managers. With the sector reliant on innovation and execution the team put considerable emphasis on the people running a particular business and the culture of the organisation.
Continuous innovation across the whole value chain opens new markets and presents opportunities for both upstarts and incumbents alike. This makes the sector a dynamic environment in which to invest but also ensures that there is enough opportunity for active management at all stages of the technology and investment cycle.
The sector offers us the chance to find a disproportionate number of companies with sustainable long-term growth rates and an ability to generate attractive margins and returns. Historical analysis of financials can often be misleading and not represent the future of a dynamically changing sector; this presents opportunities for specialist active managers. We are evangelists for the sector, and firmly believe investors are missing an opportunity if they are not fully represented in it.
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