DISTINGUISHING FEATURES

An established management team together for over 25 years

A focus on large and midcap companies which we believe can sustain superior earnings growth over an extended period.

Managing the portfolios with quantitative disciplines in support of our investment research with an emphasis on valuation, earnings momentum and price momentum.

An annualized return* over the last 10 years exceeding that of the S&P 500 Index.

* Past performance is not a guarantee of future results. Returns are before management fees 7/1/90-6/30/00

PHILOSOPHY
Berkeley Capital Management’s Growth Equities investment philosophy is based on the belief that competitively strong companies which are capable of sustaining superior earnings growth should, over time, produce above average investment results. Berkeley also believes that performance can be enhanced by selecting growth stocks which are most attractive on a combination of valuation and momentum factors.

INVESTMENT PROCESS

Focus List
Purchasing Securities
Sell Discipline
Portfolio Structure

FOCUS LIST
From a universe of companies with analysts’ expectations of above average earnings growth and a market capitalization of a least $2 billion, we develop a Focus List of companies which we believe can sustain superior earnings growth over a 5 to 6 year period. The Focus List is a dynamic list, yet does not change significantly over shorter periods of time. Typically, these companies are competitively strong with a significant and growing market share. Also, they are typically more innovative; and they are realizing superior profitability, above average sales growth, better than average earnings stability*, and superior free cash flow.
*Not all of the portfolio has positive earnings

PURCHASING SECURITIES
We use proprietary quantitative tools to support our extensive internal and external investment research to purchase and sell securities. We select companies from the focus list, which are most attractive based on a combination of:

Valuation–low price vs. the discounted value of a stream of expected earnings
Earnings Momentum–strong gains and rising expectations

SELL DISCIPLINE
We sell stocks when events occur which affect expectations of long term earnings growth, or if there is a loss of earnings momentum not recoverable within six months. We also sell when significantly more attractive situations are available, or when a stock reaches a stop-loss price. It is important to note, however, that our orientation in the investment process is to take a longer-term view, and as much as possible minimize the need to sell and create turnover.

Back to Top