Portfolio Implementation

Why a barbell has more to do with your portfolio than you think.

Every portfolio at Steven Charles Capital is specifically designed and individually managed. All decisions must comply with the strict standards of our investment discipline. The Investment Leadership Team makes all equity and bond selection decisions, but portfolio managers have discretion in determining percentage allocations, special requests or individual considerations for each client.

Our equity portfolios are comprised of 35-40 holdings, with a 4 percent maximum allocation to any one issue at the time of purchase. If the account is a balanced portfolio, the bond component ranges according to the wishes of the client, but is generally in the neighborhood of 15-30%. We hold up to 20% in cash equivalents, typically keeping between 5% and 10% in cash. For our balanced portfolios, Steven Charles Capital uses only the very highest rated bond instruments, purchasing either U.S. Government or "AAA" insured municipals bonds. Based on macro-economic factors, we lengthen or shorten maturities.

Our Fixed Income Department utilizes a “barbell” approach to allocate the dollars invested in bonds. This weights the heavy ends of the barbell with the greatest percentage of holdings. These may be either short-term (1-3 year) or long-term (15-20 year) instruments. The middle piece of the barbell represents a lesser percentage that is invested in intermediate-term bonds.