Institutional Management

Becker Capital has been a trusted manager of capital for institutional investors for over 45 years across a range of investment strategies.

Investment Philosophy

We believe the markets provide opportunities to invest in individual companies across the market capitalization universe that are trading at a discount to their intrinsic value. We act independent of Wall Street, focusing on valuation, and invest for the long-term.

At our core, we are value investors seeking to leverage dislocations in prices of quality assets to build long-term wealth for our clients. With an average of 26 years industry experience, our investment team applies a bottom-up, fundamental 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 55-65 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

Market Commentary / Wealth Management
A Purpose Driven Strategy for Cash Reserves
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Market Commentary
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