Heritage Capital Management

Heritage Capital Management is an independent, privately owned, investment management firm. Founded in 1989, HCM is an SEC Registered Investment Adviser offering actively managed Asset Allocation and Stock Management Programs.

The primary focus of our work is managing the risk–reward environment of the market. Our first objective is to keep accounts “in-line” with market conditions at all times. In the investment selection process, we incorporate our proprietary Adaptive Leadership Strategy which is designed to keep portfolios focused on market leadership. Thus, our investment strategy focuses on staying "in tune" with the big picture cycles of the market (Bull vs. Bear) and identifying the leading asset classes at all times.

HCM’s programs utilize ETFs, Mutual Funds, and individual stocks. We currently serve more than 500 Clients and have a wealth of money management experience at our disposal. Our chief investment officer has more than 18 years of experience on the “firing line” – managing accounts in real time for clients through both Bull and Bear Market periods.

At Heritage Capital Management, we believe that the degree of success you experience with our firm is directly proportionate to your understanding of the goals and objectives we strive to achieve. We hope that this information will help you to become acquainted with our approach to investing.

History: The Evolution of HCM Programs

We have always believed that it was vital for our management programs to have the flexibility to adapt to conditions in the market as well as the industry. The investment management industry has seen dramatic changes over the years. Below is a summary of the evolution of our management programs.

1989 Market Timing utilized to add value to Mutual Fund Programs

Signals based on primary Market Model
Model’s Timing signals were used to move all accounts

1990 Introduced Fund Timing System

FTS generated specific signals for each Fund managed
FTS attempted to enhance the performance of funds since signals were based on the specific fund instead of the overall market
FTS was unique in the industry – only 1 other Company in U.S. used this approach
FTS functioned well until restrictions were imposed by Fund Families which hindered the ability of the systems

1994 Introduced Tactical Asset Management

Tactical Asset Management utilized multiple fund types within a Fund Family: US Stock (Growth & Value), International Stock (Europe, Far East & Emerging), Bond (Government & High Yield)
The Tactical Approach was developed in response to Fund Restrictions as method produced fewer trading movements
The Global Tactical program focused on the best performing markets around the world.
Restrictions increased each year and slowly eliminated our ability to function

1997 Introduced Universe of Funds approach using Custodial Accounts at TCA

Universe of Funds approach used all funds via TCA platform
Implemented to reduce impact of restrictions at fund families
Utilized Custodial Accounts at TCA
Monthly Consolidated Statement
Monthly Billing and Automatic Fee Withdrawal
Annual Tax Reporting
Mutual Fund Restrictions became universal by end of 1998
Restrictions limited movement in Mutual funds

1999 Implemented use of ETFs and Stocks in Custodial Programs

Began transition from traditional Mutual Funds to Exchange Traded Index Funds in response to restrictions
ETFs provided trading flexibility and relief from trading restrictions
ETFs offer ability to trade entire index in a single security
ETFs are priced constantly throughout day
Offered Flexibility to trade any time market is open
More control over entry and exit points
Flexibility to use Limit and Stop-Loss orders
ETFs more tax efficient

2003 Implemented Adaptive Leadership Strategy

State-of-the-Art Asset Allocation Strategy
Designed to keep Portfolios focused on Market Leadership
Implemented in effort to enhance performance in up markets
Pure Approach using Indexes
Six-Class Universe (Growth vs. Value and Small, Mid, Large Cap)

2005 Introduced Top Stocks Equity Strategy

Institutionally based equity selection program
Designed to keep Portfolios focused on top rated stocks (as determined by HCM's Top Stocks rating system)
A Sector-Neutral approach
Risk Management systems incorporated

FAQs About Heritage Capital Management

Frequently Asked Questions

Q: Is Heritage Capital Management Registered?

A: Yes. HCM is a Registered Investment Adviser with the United States Securities and Exchange Commission under the Investment Advisor Act of 1940.

Q: Is HCM Experienced?

A: Yes. Heritage Capital Management was founded in 1989. As of 12/31/2006, HCM manages money for over 800 clients. Mr. Moenning has over 19 years experience managing client accounts.

Q: Are HCM’s Investment Programs Mutual Funds?

A: No. Our Investment Management Programs are Asset Allocation Models which employ stocks, mutual funds, and ETFs as investment vehicles.

Q: Does HCM have Custody of my Account?

A: No. HCM is given Discretionary Authority to manage your accounts, but does not have custody at any time. Clients retain all rights of ownership. Specific mutual funds and life insurance companies or Trust Company of America, a custodial firm based in Englewood CO, holds physical custody of the assets.

Q: Can I Cancel the Program at any time?

A: Yes. You may cancel our service at any time by providing written notice to Heritage. However, as a new client we ask that you give the program a fair trial of two to three years.

Q: Is there anything else I need to know?

A: Yes. HCM’s programs are NOT SHORT-TERM investments. Investment returns and principal value will fluctuate. For more complete information including management fees, expenses, and risks, see our most recent Form ADV Part II. Please read the Investment Management and Authorization Agreement before employing our services.

Q: How do I get started?

A: See your Financial Advisor for assistance in completing our Investor Profile and the necessary documents.