Anchor Managed Accounts Balanced Value Strategy: Stability with a Focus on Downside Risk

The views expressed below are those of Anchor Capital Advisors, LLC (“Anchor”) as of the date written on the last page of disclosures and are subject to change at any time. They are based on our proprietary research and general knowledge of said topic. The below content and applicable data are in support of our views on said topic. Please see additional disclosures at the end of this publication.

Capital preservation has long been a guiding principal of Anchor’s investment process and is paramount to how we invest our clients’ money. We believe the best way to achieve consistent, stable outperformance over time is by seeking to provide a steady stream of income, better returns in down markets, and competitive returns through bull markets over the course of a market cycle. The Anchor Balanced Value strategy lends a focus towards achieving this through traditional value investing that is based on meticulous research and picking individual stocks, and an active fixed income process based on duration management, interest rate outlook, and credit spread analysis.

The Anchor Balanced Value strategy is specifically designed to serve as the foundational strategy within a client’s asset allocation model. We believe the strategy is offers a favorable risk-return profile and is typically suited to longer-term investors who value consistency and stability as opposed to high-risk endeavors; as illustrated below the strategy historically protects clients in turbulent markets while providing competitive bull-market performance returns over the course of a market cycle:

Anchor Balanced Value: Upside / Downside Capturei
120-Month Moving Windows as of 12/31/1992

Anchor Balanced Value: Upside / Downside Capture

The strategy is typically less volatile than its benchmark, which we refer to as 60/30/10.ii

In comparison, as you will see in the following illustrations, Anchor Balanced Value tends to generate positive alpha in both rising and falling markets:

120-Month Moving Windows as of 12/31/1992

120-Month Moving Windows as of 12/31/1992

Beta: 120-Month Moving Windows Alpha: 120-Month Moving Windows


Since 1992, the Anchor Balanced Value strategy has focused on providing clients with risk-controlled outperformance. We believe the strategy presents a natural union of our value equity and fixed income expertise to offer clients a suitable foundation from which to build their investment portfolio.

Growth of $100,000V
As of 12/31/1992

Anchor Growth of $100,000


Anchor’s viewpoint on the current market conditions: As we move later in the market cycle, we face a number of challenges from rising equity valuations to low interest rates on bonds. Between additional volatility and potential for shifts in the markets, we believe our defensive and active approach to managing balanced portfolios helps weather through these stormy periods and provides stability over time. Our focus on downside protection is the anchor to windward in uncertain times.

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