Saratoga Capital Management, LLC Announces Changes to its Suggested Asset Allocations

Jul 15, 2015, 09:30 ET from Saratoga Capital Management, LLC

GOODYEAR, Ariz., July 15, 2015 /PRNewswire/ -- In accordance with its ongoing research, Saratoga Capital Management, LLC ("Saratoga") believes current economic conditions warrant changes in its suggested asset allocations.  Saratoga continually monitors economic conditions, monetary policy, interest rates, valuations and inflation in order to determine how these economic indicators might effect optimal asset allocations.

Logo - http://photos.prnewswire.com/prnh/20150714/236655LOGO

Bruce Ventimiglia, Saratoga's Chairman, President and Chief Executive Officer, states that, "The U.S. economy is entering a 'moderate core' stage of economic growth, which is generally indicated by corporate profits growing temperately, a continuation of employment growth, and a Federal Reserve posture that is supportive of economic growth while keeping its inflation target in focus.  Additionally, the unemployment rate is well off of its cycle high, which has likely been a primary factor in elevating consumer confidence to its highest level in years.  Thus, positive Personal Consumption data, which is typically dependent on healthy employment growth and sound consumer confidence, appears at this time to be well rooted."

Mr. Ventimiglia added, "We believe that the U.S. stock market in general is now fairly valued.  In broad terms, Saratoga categorizes the U.S. stock market as: undervalued, fairly valued, or overvalued.  Consequently, Saratoga's new suggested allocations are intended to reflect a fairly valued equity market."

As such, Saratoga's asset allocation optimization process generally indicates that the following should be considered:

  1. The overall ratio of equities to fixed income and cash equivalents should be reduced: 
         a. Large Capitalization Growth should be overweighted versus Large Capitalization Value. 
         b. Sector weightings, in order of largest to smallest weightings, should be as follows: Health & Biotechnology, Financial Services, Technology & Communications, Energy & Basic Materials, Real Estate, and Multi Strategy Alternative.
  2. The overall ratio of fixed income/fixed income alternatives to equities should be increased: 
         a. Traditional bond weightings should be reduced. 
         b. A real return fixed income alternative instrument should be added to asset allocation strategies.

Based in Goodyear, Arizona, Saratoga Capital Management, LLC's team of professionals oversee the Saratoga Advantage Trust, a group of institutionally sub-advised mutual funds.  Saratoga designs its suggested asset allocation models based upon the relationship between investment preferences (such as risk tolerance, time horizon and income need) and prevailing economic conditions.

For more information about this topic, or to schedule an interview with Bruce Ventimiglia, please contact Jonathan Ventimiglia at (623) 266-4567, or email him at saratoga@saratogacap.com.

SOURCE Saratoga Capital Management, LLC