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Union Heritage Capital provides financial solutions that allow institutions, individuals, and communities to achieve their hopes and dreams.

We utilize our investment discipline and stewardship to generate alpha while managing through volatile markets.

Union Heritage Capital is a Large Cap Core Manager that utilizes a multi-factor quantitatively based, bottom-up approach to select a portfolio of companies selling below their intrinsic value.

With the goal of continually seeking asymmetric returns, Union Heritage Capital provides its private and institutional clients with differentiated exposure to public markets.

Our Approach
The Union Heritage Capital Discipline

Union Heritage seeks to further construct a low turnover, concentrated portfolio of high-quality companies in strong financial condition, trading below their estimate of fair market value. The firm believes that companies with more consistent growth and stable earnings may provide attractive return potential with moderate risks over the long term.

The strategy utilizes a diversified portfolio of 40-60 US companies that is constructed to best reflect the specific factors identified by the team’s proprietary quantitative screening model. The portfolio is generally unconstrained, where sector and industry exposures can differ meaningfully from the S&P 500 index.

This strategy seeks to construct high conviction portfolios, of high quality companies with strong financials, that are trading below their estimated fair value. Union Heritage believes companies with more consistent growth and stable earnings generally provide an attractive return profile, with moderate risks over a market cycle.

In our view, the portfolio generally exhibits a higher-quality bias, and may indicate some potential to lag the benchmark when markets favor lower-quality companies, and where fundamental valuations are generally de-emphasized. Conversely, due to the team’s focus on quality, we believe the process often results in better downside capture compared to the S&P 500 during down markets.

Union Heritage employs a multi-step process which combines in depth, bottom up fundamental research in conjunction with proprietary quantitative top down screening.

Initially more than 3000 companies are screened for:

• Risk Adjusted Rates of Return
• Discount to Intrinsic Value
• Earnings Momentum
• Returns on Invested Capital
• Free Cash Flow
• Margin of Safety


The investment team utilizes the multi-factor screens to narrow a larger universe of companies to a 200 common stock universe that is based upon the most attractive opportunities across the economic sectors defined by the S&P 500. Once the 200 common stock universe is set, it is divided into quartiles with the first quartile representing the most attractive stocks based on risk adjusted rates of return.

The 200 stock universe represents a broad diversity of companies, which supports flexibility in structuring investment portfolios to meet our investment objectives. The number of stocks in a client’s portfolio varies from forty to sixty companies, depending on the size and investment objective of the particular account. Because the common stock universe of companies is ranked based on risk adjusted expected return, it provides useful information as a discipline in selecting particular investment candidates over others and meeting our investment objective of finding stocks that sell at discounts relative to their expected growth rates. The majority of the stocks are purchased from the first quartile.


The portfolio is continuously monitored for opportunities to allocate funds to the most attractive companies based upon projected risk adjusted rates of return.

Large Cap Core
Inception January 1, 1995
Market Capitalization Primarily $2 billion and above
Benchmark S&P 500 Index
Portfolio Manager Derek Batts