Mario Giammarco, Vice President
BERNARD HEROLD & CO., INC.
Bernard Herold & Co. was founded in 1972 to help individuals and institutions invest their money, and prides
themselves on the level of service and commitment provided. Founder, Bernie Herold, believed in keeping it simple. Simple solutions and simple answers.
Whether preparing for retirement, saving for your children’s education, growing your business, or planning your estate, their straightforward approach helps you navigate through the complicated universe of investments. Personalized service and the relationship that builds with your financial needs. For over a quarter century, Bernard Herold & Co. has successfully managed individual, corporate, institutional and retirement plan portfolios ranging from $250,000 to $20,000,000.Criteria for equities in your portfolio: to qualify as a Herold Advisors value investment
candidate, a security must be undervalued, with a market price that does not reflect the “true” or intrinsic
value of the company it represents. It must also meet an exacting criteria in these categories:
relative price/earnings ratio, earnings consistency, dividend history, cash flow, price-to-book-value,
return on equity, and constant equity monitoring.
Precise determinations of when to sell are just as important as the timing of equities purchases.
They scrutinize all portfolios daily for any extraordinary events within the invested
companies, or in the market as a whole, while keeping a long term view. Average holdings are for
over two years, maintaining the integrity of the portfolio.
Evaluation disciplines are: all clients’ equities portfolios are assigned to one
of two investment styles best suited to their needs and goals.
Herold Advisors’ professionals use the GARP (Growth at A Reasonable Price) style to evaluate securities that
have successfully passed the parameters listed above.
There is an underlying commonality: value-driven securities with growth
potential. Investment standards are designed to achieve good returns while lowering the volatility of
the client's portfolio.
Commitment to diversification means each security will represent no more than 5% of the total portfolio
at cost. Also, no one industry will be more than 25% of the portfolio. In the interest of liquidity, Herold & Co. will
not invest in quantities of securities that cannot be sold quickly, particularly during market declines.
Timing of securities purchases and sales will not be dictated by short-term market swings. Transactions
are based on our judgment of an individual security’s or group’s overall market direction. They believe that
short-term attempts to guess market gyrations are not in your best interests.
Herold Advisors bases its simple, yet successful,
fixed income strategies on your time horizons. The
firm’s professionals use a buy-and-hold, maturity
laddering strategy: diversify by company and industry, avoid market timing and guessing at short-term
interest rate directions, select investment grade corporate, municipal, US government and agency bonds exclusively.
Hold bonds until they mature, or are called, use an after-tax return criterion in portfolio selections,
duration’s role in fixed income, we utilize the duration concept in the structure of a portfolio.
Duration takes into consideration each bond’s cash flow and is used to lower the portfolio’s
sensitivity to large interest rate changes.
A typical fixed income portfolio will have bonds maturing in most years and will be equally weighted among
short-term, intermediate and long-term securities. This strategy has provided consistently good returns.
Carefully orchestrated variety.
A meeting with one of Herold’s portfolio managers will determine if a blend of equities and
fixed income investments are suitable for you. We will then structure a value-based, Balanced
Portfolio with asset classes based on your risk tolerance, income requirements and any other
special considerations. The fixed income portion of Balanced Portfolios is usually fully invested. Our equity managers will determine the cash vs. equities levels for the
remainder. Structuring your portfolio: Your first step as a Herold Advisors client is a
comprehensive and confidential meeting with one of Herold's skilled portfolio managers. This professional will create a portfolio that matches your individual needs and goals. Income requirements, inflationary influences, risk aversion, time horizon, taxes, liquidity, legal/ethical considerations, unique characteristics, practices and avoidances all factor in.
Value and a prudent approach to investments in equities, fixed income and balanced
portfolios, avoiding investing trends and fads, like closet indexing or following the herd. Bernard Herold & Company's clients pay for skilled active—not passive—portfolio management, and clients are protected from such trends as portfolio insurance that was associated with the Crash of ’87 and the mindless momentum investing that culminated in 2000.