BRC Recent Press Releases

BRC Investment Strategies Now Available through SmartLeaf, Inc. Wealth Management Platform - January 2012
(Full Release PDF)

BRC Mid-Cap Diversified Stratey Make PSN Top Gun List - November 2011
(Full Release PDF)

BRC Small-Cap Diversified Stratey Make PSN Top Gun List - November 2011
(Full Release PDF)

BRC Mid-Cap Diversified Stratey Make PSN Top Gun List - November 2010
(Full Release PDF)

BRC Small-Cap Diversified Stratey Make PSN Top Gun List - November 2010
(Full Release PDF)

BRC Selected to Manage Large Cap Value for North Miami Police - July 2009
(Full Release PDF)

BRC Large Cap Concentrated Earns Nelson's World's Best Money Manager Designation - June 2009
(Full Release PDF)

BRC Large Cap Concentrated / Value Makes PSN Top Gun List - May 2009
(Full Release PDF)

BRC Awarded Initial Large Cap 130/30 Extension Portfolio - January 2009
(Full Release PDF)

Press Coverage

BRC Selected one of the "Best Managers You Never Heard Of" - Plan Sponsor Magazine - August 2009
"It turns out that predicting the behavior of analysts changing their estimates is more stable and repeatable than trying to predict economic variables and company earnings . . . "
(Full PDF)

BRC Internal Research/Position Papers

Has the World Really Changed?
November 2010
Since the onset of the financial crisis in the fall of 2008, the structure of equity returns has changed dramatically from earlier periods. Analyst uncertainty is near record highs, correlations between individual stock returns are at levels not seen in at least 30 years and the value of active management seems to be at all-time lows. Is this "new order" a permanent structural change or simply the latest example of investors' propensitity to overweight recent events and ignore long-term relationships?
(Full PDF)

Momentum Returns Repeat Predictable Pattern -
July 2009
Returns to simple momentum strategies have become exceedingly volatile during the tumultuous market conditions experienced over the past year. BRC investigates the extent to which episodes of severe negative momentum returns may be predictable. Our research suggests that periods of negative returns to momentum may be related to changing investor risk attitudes and may also be at least partially predictable.
(Full PDF)

Stocks Continue to Slide, but Asset Class Diversification Remains Critical -
March 6, 2009
Despite the equity market's current negative slide, we continue to believe in the long-term viability of capitalism and in the returns that have historically rewarded patient investors. Like always, diversification remains essential.
(Full PDF)

Heading for the Sidelines - A Value Added Strategy? - January 2008
BRC investigates the validity of the natural human tendency to exit a declining equity market until conditions improve. BRC research suggests that using recent dramatic market moves as signals for making market timing decisions is not supportable.
(Full PDF)

Quant Quake - August 2007
In mid-August 2007, the US equity market was buffeted by extreme movements in fundamental factor returns. BRC explores the nature and possible explanations for these historic events.
(Full PDF)

Thinking the Unthinkable - March 2007
Over the past 100 years, the US equity markets have been buffeted by numerous dramatic and sometimes calamatous external shocks. We examine the major sources of risk faced by investors in common stocks as well as some of the reasonable steps that investors should in order to diversify and protect their portfolios.
(Full PDF)

Earnings Announcements and the Torpedo Phenomenon - December 2006
The behavioral models developed by BRC result in portfolios that have benefited from a dispropotionate number of positive earnings surprises. The positive portfolio impact of positive surprises could be mitigated if we also experience a greater than normal share of earnings "torpedos". This paper investigates this liklihood and actually finds evidence supporting the opposite conclusion. BRC portfolios tend to experience fewer negative EPS topedo announcements than would be expected in random portfolios.
(Full PDF)

Links to External Research / Press

Financial-Planing.com "Analyzing the Analysts", December 2004

"The idea that the market has such systemic pockets of irrationality is a subject of growing interest among financial academics. It’s grown increasingly popular over the last 10 years and even spawned a new area of study, usually known as behavioral economics or behavioral finance. Riddle’s interest, however, predates the behavioralist boom by at least a decade."

(entire article)

Daniel Kahneman, Maps of Bounded Rationality: Psychology for Behavioral Economics, December 2003

"the present essay offers a unified treatmenht of intuitive judgment and choice . . . The guiding ideas are (i) that most judgments and most choices are made intuitively: (ii) that the rules that govern intuition are generally similar to the rules of perception."

(entire article)

 

"We confirm that drifts in future returns over the next six and twelve months are predictable from a stock's prior return and from prior news about earnings . . . Security analysts' forecasts of earnings are also slow to incorporate past earnings news . . . "

(entire article)