All investments are researched by Heron to a rigorous standard that incorporates both quantitative and qualitative analyses. We gather information from materials that can include (but not limited to):
SEC filings such as Form 10-Q, Form 10-K, Form 8-K, and Form ADV
Other materials made available by the managers, including investor presentations, DDQ, portfolio reports.
Media coverage, news articles
Third-party evaluations and research reports
A core component of Heron’s comprehensive risk assessment framework is our proprietary Fund Scorecard, which assesses and assigns quality scores of each fund. The Fund Scorecard considers risk factors that generally fall under three categories:
People: What is the fund manager's experience, quality of the team, and alignment of their interest.
Performance: How well has the fund manager performed both with this fund and other funds making similar types of investments
Portfolio: What is the quality of the portfolio in this fund, including asset types, leverage, liquidity, and concentration
We use these scorecard to help determine which funds are included in portfolios.