BERKELEY SQUARE CAPITAL
MANAGEMENT HELPS
EVOLVE MODERN PORTFOLIO
THEORY
Berkeley Square’s new white paper examines a strategic
approach that can extend the efficient frontier by
incorporating better indices and using relative strength to
dynamically allocate across alternative asset classes
BOULDER, CO – Berkeley Square Capital Management, a thought leader in the space of liquid alternative assets
and dynamic asset allocation, announces the release of an academic white paper exploring a modernization of modern portfolio theory designed to boost returns while reducing risk. This efficient frontier extension is made possible
by a new approach based on new alternative index data, relative strength analysis and dynamic asset allocation. Their
white paper, “Momentum Investing & Asset Allocation”, authored by Chief Investment Officer Drew F. Knowles,
discusses this methodology, providing insights into:
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The utilization of their interpretation of Relative Strength theory
Dynamic asset allocation and effective rebalancing
Significant back-tested relative performance across market cycles examining allocations and dynamic
movement across fixed income, equities, and hedge fund indices
The white paper serves as a concept introduction for this evolutionary momentum-based investment strategy based
on new market and index knowledge. Incorporating quantitative information in an unbiased way, Relative Strength
allocation theory is investigated in its value to control buy, sell, or hold signals. Furthermore, a dynamic rebalancing component incorporating multiple alternative investment strategies and asset classes, which can now be better
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tracked and synthesized, is also examined. Berkeley Square suggests that this combination of factors is quicker to
react to market change, able to lower volatility, and can increase return per unit risk across asset classes by combining
and moving in and out of the most favorable alternative and traditional market segments throughout cycles.
This dynamic alternative asset allocation approach examined by Berkeley Square performs favorably when comparing against each benchmark index that was examined. Dissected, tested and compared over both short and longterm periods as well as through challenging investing environments, the white paper analyzed asset classes, portfolio
weights, and time frames between rebalancing to determine ideal combinations and methodologies. The data makes
it clear that compared to traditional buy-and-hold strategies, this evolution of modern portfolio theory fares very
well. Given the new information and strategic approach, a significant improvement in return performance is demonstrated while considerably reducing risk.
Knowles explains, “We found that investors were searching for innovative strategies to keep up with the quick evolution of the market and available index information over even the last few years. As we are able to show that adding
alternative exposure through this unique combination of strength and dynamic asset allocation can greatly improve
information ratios, institutional investors are really taking notice.”
Berkeley Square Capital Management’s Co-Portfolio Manager Mark J. Zanotti adds, “It takes a lot to get people
comfortable with change and innovation in the ways they manage their money. We set out to evolve the way individuals and institutions approach investing, allocations, and risk, and feel this strategy offers investors the downside
protection they’re looking for while adding the potential to add great value across market cycles. We think this white
paper really underscores the power of this new investment strategy.”
The White Paper, “Momentum Investing & Asset Allocation,” is available for download at BerkSq.com/
evolving-alternative-investments.
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For more information, please visit www.berksq.com/ and for interviews, contact MBC Strategic at 310 445 3333, or
[email protected].
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About Berkeley Square Capital Management
Berkeley Square Capital Management, LLC is driving the evolution of the alternative investment landscape with
pioneering strategies focused on helping clients achieve more while preserving capital and minimizing drawdowns.
We believe that Berkeley Square offers a fresh look at modern portfolio theory and alternative asset selection with an
investment approach that is nimble, dynamic and truly adapts with the market. Our solutions may challenge conventional investment philosophies, presenting clients with a new way of thinking about alternatives and about their
tactical asset allocation. We work with institutions, investors and foundations in an attempt to add significant value
while also striving to protect their assets—working to deliver the future of liquid alternative investing, as we see it.
Berkeley Square Capital Management, LLC, is a Registered Investment Adviser with the State of Colorado Division of Securities. The information herein
represents the views of Berkeley Square and is not it be considered investment advice. Nothing herein should be considered a recommendation to purchase
or sell any particular security or other financial instrument.
This material does not constitute an offer to sell or the solicitation of any offer to buy an interest in Berkeley Square Offshore Fund, Ltd. Or Berkeley
Square Onshore Fund, LP (collectively, the “Fund”) or any other fund managed by Berkeley Square Capital Management, LLC (“Berkeley Square” or the
“Investment Manager”). An investment in the fund is speculative and involves a high degree of risk. Opportunities for withdrawal and transferability of
interests are restricted, so investors may not have access to capital when needed. Any such offer or solicitation will be made only at the time a qualified
offeree receives a Confidential Private Offering Memorandum or a Confidential Explanatory Memorandum, as applied (collectively, the “Memorandum”)
describing the offering and related subscription agreement. The information in this presentation material (the “Presentation Material”) is not complete and
may be changed. In the case of any inconsistency between the descriptions or terms in this Presentation Material and the Memorandum, the Memorandum
shall control.
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