The Skill of Active Management

Find out why Balentine typically choose to be passive in efficient asset classes, and how we decide whether active management may be more appropriate.

Private Capital as an Asset Class

Private Capital has become a mainstay of many institutional and individual portfolios over the past 10 years, weathering challenging economic and market environments. As an asset class, it has provided investors the opportunity for returns in excess of the public stock markets in exchange for less liquidity and different risks. Based on our 2014 Capital […]

The Fundamental Things Apply

As we look to 2014, many are reflecting on a very strong year for domestic stock markets. However, a key component that is missed by many investors and the media alike is the failure to appreciate how much (or rather how little) of that rally has been justified by an improvement in underlying fundamentals. As […]

The Safety of Safe

Financial markets have been particularly volatile in the last several weeks, with both stocks and bonds declining. This turmoil was largely triggered by Federal Reserve Chief Ben Bernanke’s comments regarding the eventual end of quantitative easing, as investors questioned the Fed’s credibility. As evidenced in 1994, a change in the Fed’s course can significantly disrupt […]

Cyclicals Lead, Advisers Weigh Portfolio Shifts

Adrian Cronje, Balentine’s Chief Investment Officer, shared thoughts on portfolio shifts with the Wall Street Journal in the article, “Cyclicals Lead, Advisers Weigh Portfolio Shifts.“ From “Cyclicals Lead, Advisers Weigh Portfolio Shifts,” in the May 20 edition of the Wall Street Journal: “Mr. Cronje has taken steps to trade against that instinct. At the end of 2012, at […]

Puzzling Behavior

“Puzzling Behavior,” from the April 4, 2013 issue of Financial Advisor Magazine, discusses asset allocation and how investment advisors actually construct portfolios: Balentine’s interpretation of asset allocation “truth” starts with five basic building blocks. “Instead of thinking of 30 different asset classes to build portfolios, we group asset classes by risks that matter,” says Cronje. Each […]

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 […]

Bridging the Gap: A Tactical Rebalancing Act

Portfolio rebalancing is the process of bringing a portfolio that has deviated from a target allocation back in line. The prevailing notion for much of the investment industry has been to set and then forget an investment portfolio and only rebalance on a regularly scheduled basis, either monthly quarterly or in some cases yearly. Despite the fact that this has long been the industry standard, in the current low-return environment, this “set it and forget it,” autopilot strategy simply is not good enough.