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

Jun 07, 2010, 14:48 ET from Saratoga Capital Management, LLC

GARDEN CITY, N.Y., June 7 /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.

Bruce Ventimiglia, Saratoga's Chairman, President and Chief Executive Officer, states that, "The U.S. economy is entering a 'core' stage of economic growth."  Mr. Ventimiglia noted that, "A core stage of economic growth is generally indicated by corporate profits advancing, the beginning of employment growth, and a Federal Reserve posture that has been accommodative (which is apparent from the rapid growth of currency in circulation accompanied by interest rates that are, or recently have been, hovering near their cycle lows)."  Additionally, he stated that, "The unemployment rate appears to be near its cycle high and is beginning to decline this, coupled with other factors, appears to be indicating that the economic expansion is entering a core stage of growth. Furthermore, during this stage the economy could show signs of strength along with pockets of weak economic growth all in the context of an economic expansion."  As such, Saratoga's asset allocation optimization process generally indicates that:  

  1. Increasing the overall ratio of equities to bonds and cash equivalents in balanced allocations generally by reducing exposure to bonds and cash equivalents should be considered;
  2. Overweighting large capitalization value versus large capitalization growth generally by increasing exposure to large capitalization value and decreasing exposure to large capitalization growth should be considered;
  3. Increasing exposure to small cap and international should be considered; and
  4. Overweighting the technology & communications and energy & basic materials sectors over the health & biotechnology sector, which should be overweighted versus the financial services sector should be considered.

Based in Garden City, New York, 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 Andrew Murphy at (516) 542-3000, or email him at Saratoga@SaratogaCap.com.

SOURCE Saratoga Capital Management, LLC