Herald Investment Trust – Investing in the future

Marten and Co publishes its first initiation of coverage note on Herald Investment Trust (HRI)

Herald Investment Trust (Herald) is a major investor in the small-cap technology sector, especially in the UK. It is the only listed investment trust with a focus on this space. In recent times, small-cap technology stocks have become cheaper relative to both the broader market and large-cap technology stocks. Relative valuations are now close to five-year lows. Current uncertainties may have unnerved many investors, but the manager is looking ahead and believes that there is considerable latent value in Herald’s portfolio. Furthermore, despite an uptick in share buy-back activity, Herald’s discount has widened in recent months, to levels that the manager feels represent an attractive entry point for long-term investors; she has just invested personally c £300,000 in Herald.

Herald Investment Trust – Investing in the future

The company 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.

You can access the fund’s website here

HRI : Herald Investment Trust – Investing in the future