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Arcataur Managed Balance Portfolio Strategy:

Portfolio Strategy




The Arcataur Managed Balance Portfolio offers investors a separately managed account which balances the growth opportunity of the equity markets with the stability and income generation of the fixed income markets  We view it as a core investment vehicle for a wide range of clients.  It is ideal for investors who seek growth over time and also desire current income.  This investment discipline provides flexibility and customization to meet unique client needs.  The Arcataur Managed Balance Portfolio takes advantage of the concept of the Modern Portfolio Theory - blending volatile equity assets with less volatile fixed income assets over long periods of time to achieve an appropriate balance between return and risk.  History has shown that a well-diversified portfolio will achieve solid results without taking on excessive risk.  Arcataur has developed a market value discipline that assists us in determining the relative attractiveness of stocks versus bonds on a real time basis.  Key factors include corporate earnings, interest rates, inflation expectations and the implied risk premium between these asset classes.  The Arcataur Managed Balance Portfolio utilizes Core target weights and ranges for moderate risk tolerance clients.  The specific investment objective and risk profile of the client may necessitate Conservative or Aggressive target weights and ranges, or specifically tailored weights and ranges.  We utilize our fundamental analysis and valuation discipline to determine where to positions portfolios within the client’s stated range.  For instance, in Core portfolios, when our analysis indicates stocks are more attractive, we will be near our upper end of the range for equities (75%).  Conversely, when bonds are favored, we will be near the lower end of the range for equities (45%).


The equity component of the Arcataur Managed Balance Portfolio is the Arcataur Large Capitalization Equity Portfolio, utilizing the same process to achieve a separately managed account consisting of high quality, blue chip stocks, along with broad equity exchange traded funds to diversify stock exposure.  Similarly, the fixed income component is the Arcataur Investment Grade Fixed Income Portfolio.



Managed Balance Portfolio
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Arcataur Capital Composite Performance


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