Berkeley Square Capital Management Helps Evolve Modern Portfolio Theory
A new white paper examines a strategic approach incorporating better indices and using relative strength to dynamically allocate across alternative asset classes
BOULDER, Colo., Oct. 12, 2015 /PRNewswire/ -- Berkeley Square Capital Management, a thought leader in the space of liquid alternative assets and dynamic asset allocation, announces the release of an academic white paper exploring a modernization of modern portfolio theory designed to boost returns while reducing risk. Their white paper, "Momentum Investing and Asset Allocation", authored by Chief Investment Officer Drew Knowles providing insights into better risk and return results through dynamic asset allocation and rebalancing of classes using their interpretation of Relative Strength theory across market cycles.
The white paper conceptually introduces this evolutionary momentum-based investment strategy. Relative Strength allocation theory is investigated in its value to control buy, sell, or hold signals and incorporating multiple alternative investment strategies and asset classes. Berkeley Square suggests this combination of factors is quicker to react to market change, able to lower volatility, and can increase return per unit of risk by moving in and out of the most favorable alternative and traditional asset classes.
This dynamic alternative asset allocation approach performs favorably when compared against each fixed income, equities, and hedge fund benchmark indices. Dissected, tested and compared over both short and long-term periods, the white paper analyzed portfolio weights, and time frames between rebalancing to determine ideal combinations and methodologies. The strategy fares very well, demonstrating a significant improvement in return performance while considerably reducing risk.
Knowles explains, "While meeting with institutional clients to review their asset allocations, we found many were searching for innovative strategies that could adapt to changes in market conditions. These firms were consistently telling us that 'buy and hold' just was not getting the job done anymore. The dynamic approach makes sense and really serves as a great foundation to how we think about capital market allocation among a range of asset classes."
Berkeley Square Co-Portfolio Manager Mark Zanotti adds, "We set out to evolve the way individuals and institutions approach investing, allocations, and risk. We feel this strategy offers investors the downside protection they're looking for while adding the potential to add great value across market cycles. We think this white paper really underscores the power of this new investment strategy."
The paper is available for download at BerkSq.com/white-paper/.
For more information, please visit www.berksq.com and for interviews, contact MBC Strategic at (310) 445-3333, or [email protected].
About Berkeley Square
Berkeley Square Capital Management, LLC is pioneering a new way of thinking about alternative assets and about their tactical asset allocation.
Berkeley Square Capital Management, LLC, is a Registered Investment Adviser with the State of Colorado Division of Securities. The information herein represents the views of Berkeley Square and is not it be considered investment advice. Nothing herein should be considered a recommendation to purchase or sell any particular security or other financial instrument.
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SOURCE Berkeley Square Capital Management
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