A key hallmark of Biechele Royce Advisors is our adherence to a disciplined, value-driven style of investing. We believe that successful investing is based on systemic factors, not emotions. This is why we adhere to a disciplined investing formula designed to navigate an ever-changing financial landscape.
We are active portfolio managers, grounded in the belief that the price you pay matters greatly in determining the return you should expect from any investment.
The two keys to avoiding unnecessary risk in your investment portfolio while still achieving your targeted rate of return are:
- Effective asset allocation
- Careful stock selection
Securities priced at discounted values offer favorable reward/risk metrics. Through active portfolio management we seek to overweight asset classes and stocks that are undervalued (on sale) and underweight or avoid those that are overvalued.
Our equity portfolios are managed with a value discipline; seeking high quality businesses that are trading at attractive valuations. The underlying value of a business does not fluctuate as much as the value of a company's stock. Periodic dislocations in price and value create opportunities for long term value investors. It is this gap between price and value that we seek to capture in generating long term equity returns.
The core of our equity portfolios is a diversified basket of high quality businesses with strong company fundamentals and attractive valuations creating a favorable reward/risk outlook over a typical holding period of 3-5 years.
Our fixed income component of portfolios seeks to provide a buffer against equity volatility and generate income. We utilize bonds or bond funds issued by U.S. Government/Government Agencies, Corporations, Municipalities, as well as foreign issues based on the outlook for credit, interest rates, and inflation.
Based on asset class valuations, we will complement portfolios with additional diversification by adding international investments in both the developed markets as well as emerging markets.
When appropriate, we blend traditional stock and bond investments with alternative investments to increase diversification and add sources of non-correlated returns. Such portfolios can be constructed to purposely forego some upside participation in strong markets in order to protect more on the downside during adverse markets.