Investment Philosophy
Change is the primary principle of Delta’s Large Cap Core investment philosophy. Delta assesses change from three levels in its process. First, Delta looks for major change in the economic landscape that influence the portfolio’s exposure to different economic sectors. Second, Delta identifies changes occurring at the industry or company level that will ultimately drive growth in a company’s revenues, profitability and cash flows. Lastly, Delta utilizes valuation analysis to identify securities where expected positive change is not reflected in the current valuation. Delta’s investment philosophy seeks to outperform in both rising and falling equity markets with low portfolio turnover.
Portfolio Construction
Delta’s assessment of change in the macro environment forms the basis for how the portfolio is positioned at the sector level. Sectors are under weighted or over weighted depending upon how they will perform in the expected economic environment. Typically, Delta maintains exposure to all ten of the economic sectors, ranging from one-half to twice the sector weight. The weightings are monitored in comparison to the S&P 500. Delta’s approach results in a diversified portfolio where no one security exceeds 4 percent of assets.
Security Selection
At the individual security level, Delta looks for companies or industries undergoing positive fundamental change that will result in accelerating earnings. Delta focuses on the large cap universe. Delta uses valuation analysis to determine the relative attractiveness of individual securities.
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Berkeley Capital Management LLC is registered with the SEC under the Investment Advisors Act of 1940. All information provided herein is general in nature. Nothing on this page constitutes an offer to sell securities, provide investment services of any description, nor constitutes investment or legal advice.
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All information is provided for informational purposes only and should not be deemed as a recommendation to buy the securities mentioned. The above information represents the ten largest holdings, by principal amount (par), of the Large Cap Core strategy as of 6/30/07. Each quarter, Berkeley Capital Management uses this same objective, nonperformance based criteria to report the ten largest holdings in the Large Cap Core model.
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