The Balentine Approach to Global Asset Allocation

Balentine is 100% employee owned with all employees meaningfully invested alongside our clients. Our investment professionals have more than two decades of experience in managing Global Asset Allocation strategies for institutions. Our team utilizes a disciplined, consistent, and repeatable process that has a proven track record of superior risk-adjusted returns over various market environments.

The core of the investment process is model-driven, which takes the emotions out of the investment process and helps us identify when long-standing relationships between asset classes favor one asset class over another. Balentine’s key insight is asset class performance dispersion that unfolds over long periods with great amplitude, creating an opportunity for our clients in a very simple, repeatable way.

We have a commitment to investment excellence and exceptional client service, and we embrace a culture of the highest ethical standards for our clients. Balentine team members have been quoted in The Wall Street Journal, Foundation & Endowment Money Management, and The New York Times, and the firm has been named one of Pensions & Investments Best Places to Work for several years running.

Our 30-Year Legacy

Investment Philosophy

Balentine’s research demonstrates that long-lived relationships of returns exist between asset classes. We have found that these “dispersions in returns” tend to move in long cycles as the market pushes some asset classes too high on emotions of greed while pushing other asset classes too low on emotions of fear. Our team uses these emotional over-reactions to build positions in asset classes that exhibit market confidence and then move out of those positions as market confidence erodes.

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* Source: FactSet

While many market participants use relative value to determine the attractiveness of one asset class over another, Balentine believes relative value fails to take investor sentiment into account. This leads many competitors to buy cheap asset classes that only get cheaper or sell expensive asset classes that go much higher in price. By also evaluating investor sentiment, our team is able to identify where investors have recognized the dispersion in asset classes. This creates value by avoiding asset classes that continue to lose value or selling asset classes too early that continue to accrete value.

Why Global Asset Allocation (GAA)?

Studies show* that the vast majority of returns in a portfolio can be explained by the correct asset allocation. Portfolios that do not use GAA are exposed to a more static asset allocation, which rebalances portfolios solely based upon a calendar review cycle. However, opportunities seldom occur conveniently or regularly based upon the calendar. In contrast, the goal of GAA is to allocate the portfolio to as many superior asset classes as possible, allowing Balentine to take advantage of the shifts in investor sentiment.  

* Source: Ibbotson, Roger G. and Paul D. Kaplan. “Does Asset Allocation Policy Explain 40, 90 or 100 Percent of Performance?” Financial Analysts Journal, Jan/Feb 2000, pp. 26-33

Meet Our Institutional Investment Team

Chairman & Chief Executive Officer
Chief Investment Officer
Chief Financial Officer
Senior Investment Advisor
Senior Investment Analyst
Director of Institutional Relationships
Senior Investment Advisor
Investment Analyst
Senior Investment Analyst

Chief Compliance Officer
Client Operations Associate
Marketing Associate
Director of Communications

 

Learn More

Connect with Director of Institutional Relationships Darlene van Nostrand

to learn more about our institutional investing services.

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