June 26, 2017 — Find out why Balentine typically choose to be passive in efficient asset classes, and how we decide whether active management may be more appropriate.
The second quarter of 2016 ended with a bang, as the United Kingdom voted to leave (“Brexit”) the European Union on June 23. This marked the second time in six months that global stock markets experienced severe stress, following the worst January in recorded history.
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 […]
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 […]
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 […]
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,” 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 […]
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 […]
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.
Alan McKnight, the director of global investment strategy at Balentine, said taking on currency exposure adds the risk that movements in the currency can influence the overall value of the asset regardless of the underlying characteristics of the asset.