Institutional Management

Becker Capital has been a trusted manager of capital for institutional investors across a range of investment strategies.

Investment Philosophy

We believe the markets provide opportunities to invest in individual companies across the market capitalization universe. We act independently of Wall Street, focusing on your goals to invest for the long-term.

At our core, we seek to leverage dislocations in prices of quality assets to build long-term wealth for our clients. With an average of 24 years industry experience, our investment team applies a rigorous research process to uncover investment opportunities. In all cases our team focuses on the price we are willing to pay adjusted for the risks involved.

Equity

All-Cap Value
Objective: to outperform the Russell 3000 Value Index over a market cycle

Framework:
- Invests in U.S. stocks across market capitalizations >$1 billion
- Portfolios typically consist of 65-75 stocks
- Initial position sizes range from 1%-2%; maximum position size of 5%
- Maximum sector exposure 35% (typically within 10 percentage points of benchmark weighting)
Large-Cap Value
Objective: to outperform the Russell 1000 Value Index over a market cycle

Framework:
- Primarily invests in U.S. stocks and ADRs with market capitalizations >$10 billion
- Portfolios typically consist of 45-60 stocks
- Initial position sizes range from 1-2%; maximum position size of 5%
- Maximum sector exposure 35% (typically within 10 percentage points of benchmark weighting)
Focused Value
Objective: to outperform the Russell 3000 Value Index over a market cycle with a volatility profile similar to the index

Framework:
- Invests in U.S. stocks across market capitalizations >$500 million
- Portfolios typically consist of 25-35 stocks
- Focus on maintaining high active share
- Initial position sizes range from 1-4%; maximum position size of 10%
- Sector weights may vary significantly relative to the benchmark
Equity Income
Objective: to outperform the Russell 3000 Value Index over a market cycle while generating above-benchmark yield

Framework:
- Invests in U.S. stocks and ADRs with market capitalizations >$1 billion
- Portfolios typically consist of 45-55 stocks
- Focus on companies with relatively stable cash flows, strong balance sheets, and history of growing dividends
- Initial position sizes range from 1%-5%; maximum position size of 5%
- Sector weights may vary significantly relative to the benchmark

Cloudy Seattle

Fixed Income

Tax Exempt Bond Strategy
Objective: to provide a stable stream of after-tax income with a high quality, conservative, and actively managed municipal bond portfolio

Framework:
- Portfolios are generally comprised of approximately 33 individual municipal bonds, providing a balance of liquidity and diversification
- Bonds are purchased with the client’s individual tax circumstances and sensitivity in mind
- This is especially important for clients living in states with high income tax rates
- Individual bond credit quality of BBB or better, with an average rating of AA
- Active management allows us to tailor portfolios to accommodate individual client requests and investment policies
Taxable Bond Strategy
Objective: to provide a stable stream of income with a high quality, conservative, and actively managed taxable bond portfolio

Framework:
- Portfolios are generally comprised of approximately 20 different positions of U.S. Treasuries, agencies, and corporate bonds
- Corporate bonds are limited to no more than 3.5% of the fixed income portfolio
- U.S. Treasury and agency positions may be more concentrated due to the low credit risk and high liquidity of these securities
- Individual bond credit quality of BBB or better, with an average rating of AA
- Active management allows us to tailor portfolios to accommodate individual client requests and investment policies

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