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Portfolio Managers:
David Ruff, CFA view profile
Bruce Brewington, view profile
Randall Coleman CFA, view profile

Philosophy

Berkeley Capital Management’s Balanced investment philosophy is based on the belief that equities are the preferred asset for achieving superior returns. However, the optimum balance of potential returns and risk can vary significantly over the course of a business cycle, and value can be added by adjusting the allocation between stocks and fixed income securities. We offer Balanced portfolio management investing in stocks, bonds, and money market instruments, which may be appropriate for accounts seeking capital appreciation with less volatility.


Investment Process

Our standard Balanced portfolios are 60%/40% (stocks/bonds) with the equity portion of the portfolio varying within the range of 40% to 80%. Specific allocation guidelines are established for each client. Our Balanced management seeks to make timely shifts utilizing proprietary models and qualitative judgments. The proprietary process is based on integrating three investment approaches: fundamentals, valuation and market behavior analysis.

The focus in each approach is as follows:

• Fundamental – focus on measuring the rate and direction of change in inflation, monetary trends, and comparative analysis of the dynamics of profit momentum versus consensus earnings estimates;
  
  
• Valuation – analyzes 5-year government bond interest rates, equity risk premium, expected earnings growth and the historical comparison of the yield for stocks versus US Treasuries; and
  
  
• Market behavior – analyzes the S&PP 500’s absolute price momentum, and extremes in investor sentiment regarding stock prices and interest rates.

Although the 60%/40% asset mix is considered standard, the portfolio can be adjusted to reflect client requirements regarding risk tolerance and rate of return objectives. Unlike market timing strategies, Berkeley’s asset shifts are moderate and reinforce participation in established trends favoring one asset class over another. Within each asset class, equities and fixed income, levels of sector risk and security selection risk are controlled as agreed with each client.