Beacon Street Capital Named Top Gun for Its Performance in the Worst Market in Years

Atlanta, GA, March 01, 2009 --(PR.com)-- The Atlanta based firm, Beacon Street Capital, LLC, has been rated by Informa’s PSN as Top Gun for its equity large cap core composite for the fourth-quarter, one-year and three-year periods ending December 31, 2008. Beacon Street Capital was also ranked in the top one percent of large cap core managers in the nation for the trailing five-year period.

“It’s quite an accomplishment coming in the worst market we’ve had in years,” said Terry Burke, CEO of Beacon Street and co-portfolio manager for the strategy. “We have a unique process that we developed over ten years ago to provide consistent excess returns with low volatility, yet preserve capital from the ravages of a bear market.”

This isn’t the first time Beacon Street Capital has been recognized for its performance. It has routinely been awarded top spots by Money Manager Review and Morningstar.

While the equity strategy used by Beacon Street Capital provides superior risk-adjusted returns in all market conditions, it does especially well in bear markets due to the natural re-balancing of the portfolio between stocks and cash. “In a bull market everyone’s a genius so you can expect returns to be good, but we were more concerned about protecting against the downside, especially since we invest along with our clients in the same strategy,” exclaimed Mr. Burke. “We developed a method of quantifying the change in internal growth potential based on balance sheet changes, and because the market is slow to react to these changes it gives us a competitive edge in knowing what to buy and when to sell.”

This unique process re-balances the portfolio between stocks and cash as the market transitions from a bull to a bear market, and vice-versa. “Bear markets are created when internal growth potential breaks down, and since we default to cash when stocks are sold and not replaced we generally have higher cash levels prior to and during a bear market,” said Mr. Burke. “Of course the opposite happens prior to and during a bull market as internal growth potential improves.”

Another benefit of measuring internal growth potential for individual companies is the sector rotation created as the portfolio turns over. “This automatic sector rotation tends to keep the portfolio invested in those sectors with the greatest growth potential, and this growth potential supports the stocks price when the market declines,” said Mr. Burke.

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