Balanced and Bond Portfolios

A balanced portfolio format offers advantages both to the manager and to the client. For the manager, being able to use all three components of the portfolio construction — stock selection, bond selection and asset allocation — allows for flexibility that produces more consistent returns. For the client, such as an endowment, having a balanced manager can add value, because the pivotal asset allocation decision is continuously reviewed by a professional investment organization rather than part time by an investment committee. (The committee can still set a band of strategic asset allocation guidelines).

We currently manage over $1 billion of bonds. Our approach is to position against interest rate trends and to use an overlay of sector selection and individual issue research. Our turnover tends to be low. These are times when being short or long is the main theme of our bond portfolios and other times when sectors or individual issues are more important. We use foreign currency bonds when we believe they are appropriate. The overall quality of our bond portfolio has been consistently high.

Balanced and Bond Portfolios

Equity Portfolios