Risk Parity – A Superior Approach or a Flawed Model?

In recent years, the “risk parity” approach to asset allocation has won converts with significant fund inflows and, until recently, very good performance. The basic idea of a risk parity strategy is to spread risk equally across different asset classes in a portfolio. For example, if bonds are innately less risky, one can own a […]

Misleading Models

There are many investment myths floating about that can be harmful to investors. One of the most dangerous we’ve heard recently: because bonds are likely to be a terrible investment going forward, stock performance should be great. After all, investors have been trained to treat the two asset classes as Yin and Yang. A recent […]

The Importance of an Absolute Return Focus

At Balentine, we espouse focusing on an absolute return benchmark over a full market cycle to measure investment results. After all, as we counsel clients, “you cannot eat relative returns.” The Barron’s article “Chasing Goals Rather than Benchmarks” discusses this shift in thinking. Citing “the industry’s efforts to reframe the conversation with investor away from how much […]

Investing in Private Capital

Private capital is an asset class that generally includes venture capital (financing new or young businesses with equity), buyouts (financing the sale or recapitalization of an existing business with more debt, usually part of a transaction) and mezzanine financing (providing equity and high yield bond financing to existing companies). As an asset class, private capital […]

Developing a Liquidity Management Policy

As Balentine has articulated over the years, proper liquidity management should not be taken for granted. While a seemingly innocuous subject in the world of public equities, variable rate fixed income securities, hedge funds, commodities and derivatives, failure to prepare for distributions can lead to undesirable outcomes for an entire portfolio. Portfolio distributions – fixed […]

From All Angles

When Robert Balentine opened Balentine two years ago with 10 capitally invested partners, he knew as much about what he wanted as he did about what he didn’t want in an independent investment firm. He didn’t want a corporate agenda driving client goals, but wanted an employee-ownership model to incentivize staff to do what’s best for each client.

Storm Chasing

“One of the lessons of the great recession is that people don’t trust anybody anymore,” Robert Balentine says. “They don‰Ûªt trust the banks, they don’t trust the large brokerage firms and I think they’re seeking independent models. I think at the end of the day, if you listen to your clients, they’ll tell you how to run your business.”

The Right Information for Decision-Making

Balentine Chief Investment Officer, Adrian Cronje recently participated in a CIO roundtable for The Journal of the CFA Society of the UK. In this roundtable for the Professional Investor section, Adrian and other CIOs from venerable institutions discussed getting the right information for effective decision-making.

Filings give peek inside wealth management world

The firm gives investors the ability to choose whether they want to be party to all decisions about their money, said President Jeff Adams. “We believe that offering both appropriate. There are still clients who prefer to make the decisions themselves,” he said. Still, “We have more clients than not that trust us to do it for them.”