positions are invested in areas, sectors
or asset classes that we believe will
add excess value, diversification and
enhance the returns of the portfolio
by outperforming a broad market benchmark.
"Satellite" positions may
also help decrease risk because they
are often not highly correlated with
the "core" holdings.
We would include a
holding as a satellite position within
a model portfolio only after careful
reearch and if our investment team believed
that the fundamentals of the asset class
were attractive and that it would outperform
the broad market. We routinely have
exposure to multiple areas and asset
classes in our satellite positions.
Brooks Clark Ltd. conducts ongoing,
in-depth research into current economic
conditions and developing trends in
the global capital markets. This allows
us to determine what areas to underweight
or overweight for both the "core"
and "satellite" components.
The primary purpose of this strategy
is to generate additional returns and
decrease risk over time.
Once we determine
what areas we want exposure to and in
what varying percentages, we populate
both our core and satellite positions
with a combination of active and passive
funds. Combining active and passive
funds helps increase the portfolio's
tax efficiency, makes the portfolio
more cost-effective, and provides maximum
flexibility and liquidity. This blending
of active and passive investment management,
utilized in the context of a "core"
and "satellite" framework,
is what makes Brooks Clark Ltd.'s professionally
managed portfolios exceptional, consistent
The content of this website is provided for informational purposes only and is not a solicitation or recommendation of any investment strategy. Investments and/or investment strategies involve risk including the possible loss of principal. There is no assurance that any investment strategy will achieve its objectives.