Our investment approach

Herald Investment Trust (HRI) invests globally in listed technology and communications companies, typically those with a market capitalisation of less than $5 billion at the time of initial investment. This specialist area of the market is often under-researched and overlooked by many investors, creating opportunities to identify promising businesses before they become more widely recognised.

The Trust seeks to deliver long-term capital growth by building a diversified portfolio of companies with significant growth potential, typically over an investment horizon of five years or more. The portfolio is actively managed and does not seek to track a benchmark index. HRI provides investors with diversified exposure to a wide range of innovative technology and communications businesses.

The investment team takes a long-term approach, investing in more than 300 listed and unlisted companies based on detailed fundamental research. Investment decisions are typically supported by direct engagement with company management, with the team often meeting holdings at least twice a year. The team's specialist sector focus provides valuable insight into industry dynamics through regular discussions with competitors, customers, suppliers and prospective investments around the world.

By combining this industry knowledge with rigorous financial analysis, the managers seek to identify the businesses best placed to benefit from long-term technological change. While the sector can experience a wide range of outcomes, successful investments have the potential to generate exceptional returns. Reflecting this patient approach, HRI's top 20 holdings have been held for more than 10 years on average.

Since its launch in 1994, HRI has supported hundreds of company fundraisings and provided more than £500 million of growth capital to smaller technology, media and telecommunications businesses. Through continued investment, realisation of gains and reinvestment, the Trust has helped many innovative companies expand, contributing to economic growth and job creation while delivering strong returns for shareholders.

At the heart of HRI's investment philosophy is a commitment to being a long-term, supportive shareholder. The Trust has a long history of backing portfolio companies through multiple stages of growth, including providing capital in follow-on fundraisings where appropriate. The managers take a patient approach to investing, holding successful businesses for many years and looking beyond short-term market movements. Through thoughtful engagement with management teams and boards, HRI seeks to support companies in creating long-term value for shareholders.