Heard Capital was profiled in the April 2 edition of Emerging Manager Monthly.
An excerpt of the article can be found below, and the full article is available here.
Listening Brings Heard Capital To New Opportunities
Emerging Manager Monthly, April 2020
William Heard prefers to listen. That trait has greatly benefited him and his eponymous firm Heard Capital over the past nine years, not only from an investment standpoint, but in managing strategies attractive to institutional investors.
The firm launched a commingled high conviction long-only fund last year that only receives incentive fees only when it outperforms its Russell 3000 Index benchmark. The $3.6 billion Kresge Foundation was a key part of that process and invested last summer.
“They were foundational because they allowed us to come to market with something different,” Heard said. “This is a vehicle that aligns interests on day one.”
The strategy’s unique fee structure comes “at a time when investors are worried about fees and paying for beta,” Heard said.“It is really a testament to obviously not just hard work, because everyone works hard, but differentiated process and skill. We have the ability to show people that this is not just beta. We can show how we generate alpha and how we make decisions over time that either generate excess returns or protect capital, depending on the vehicle,” said Priya Kaftan, head of investor relations and product strategy at the Chicago-based firm.