Heron Bay Capital Management (HBCM) is an employee-owned investment management boutique that brings institutional discipline in stock research and portfolio management to individual investors and family offices. HBCM’s investment team offers six proprietary equity strategies across the market capitalization spectrum that are based on the enduring business principal that competitively advantaged businesses efficiently generate cash. As Stewards of Family Wealth, the team operates as clients’ fiduciary, providing investment management and holistic wealth management services including financial planning, asset allocation, and portfolio construction.

“We apply our institutional portfolio management backgrounds to manage family and intergenerational wealth. Our mission is to understand the unique financial circumstance and needs of clients and generate the highest returns based on their requirements,” says Paul Seizert, Chief Compliance Officer at Heron Bay Capital Management.

Heron Bay Investment philosophy is sector and benchmark agnostic and invests in the best businesses trading at a discount to intrinsic value. The investment team goes through a research-intensive investment process – a blend of quantitative and qualitative research methods – to build robust equity portfolios.

The research process involves assessing business and industry economics, management competence, quality, overall market dynamics and outlook. Investments follow Warren Buffet’s approach of finding high-quality businesses with a big moat. With a long-term view, this involves narrowing down the investable set of companies to a handful that can be held for an extended period, typically measured in years. In addition to generating high returns, this low turnover approach tends to be highly tax efficient.

The team spends a majority of their time analyzing how businesses generate and use cash to grow their firm’s intrinsic and market value over time. “We seek to understand the industry dynamics, business drivers, how a company can profitably generate cash and create long term value. We don’t trust generally accepted accounting practices (GAAP) and make appropriate and conservative non-cash adjustments to analyze the true economics of the business” says Seizert. The firm takes pride in its ability to blend business analysis and personal finance expertise to manage investment portfolios focused on high-quality, long-term, and valuation-oriented investment philosophy. Heron Bay follows a unique multi-faceted risk management framework that embraces concentrated equity portfolios using diversification among investment styles, asset classes and a time segmented approach to asset allocation to meet client requirements.

Client onboarding at Heron Bay starts with face-to-face interactions, where it gets a comprehensive view of their goals and investment capital. To decide the best-suited portfolio type for an investor’s needs, it considers a blend of six active equity portfolios, including large cap, small and mid-cap, and micro-cap, and to create tailored investment portfolios that satisfy their aims and objectives. Importantly, clients interact directly with Portfolio Managers who are also entrepreneurs, which is different compared to many brokerage relationships.

Capitalizing on its background in institutional investment management, the team aspires to carry forward this trail of success to serve institutions, independent RIAs, family offices, and individual investors alike.