Investment Process & Risk Management

Investment Process


Blue Edge Capital has developed a disciplined and repeatable investment process that we implement uniformly across all of our client portfolios. Each Blue Edge Capital portfolio is designed around a long-term strategic asset allocation target, and our team employs real time tactical tilts both to manage portfolio risk and to take advantage of market opportunities. Our BEC Investment Committee directs security selection, monitors asset allocation to ensure compliance with portfolio policy ranges, and continually assesses financial markets and economic conditions that could influence tactical trading decisions.

Image
Image

Portfolio Construction & Risk Management


BEC portfolios are well diversified across multiple underlying ETFs that provide exposure to various asset classes, market cap segments, geographies, and sectors. We utilize ETFs from a number of different ETF fund sponsors to capture the exposure we seek for our portfolios, as we do not believe that any one provider is “best-in-class” within every asset class category.

Key Criteria
for ETF Selection

  • Underlying index 
  • Index replication methodology
  • Size and liquidity
  • Expense ratio
  • Performance tracking error
  • Tax efficiency

Learn More

Characteristics
We Avoid

  • Levered or “ultra” ETFs
  • Inverse ETFs
  • Exchange Traded Notes
  • Esoteric or illiquid markets

Learn More

Key Criteria
for ETF Selection

  • Levered or “ultra” ETFs
  • Inverse ETFs
  • Exchange Traded Notes
  • Esoteric or illiquid markets

Learn More

Technology &
Data Security

  • Review and affirm policies and procedures based on best practices annually
  • Leverage third-party compliance, legal, IT and accounting relationships
  • Partner with industry-leading independent custodians to safeguard client assets
  • Offer client portal with institutional-quality performance reporting

Learn More

Risk Management

Image

Raising cash balances

Image

Increasing fixed income exposures

Image

Adjusting portfolio duration and/or credit exposures

Image

Reducing exposure to economically sensitive equities (small caps, emerging markets, value/cyclical stocks)

Image

Increasing exposure to liquid alternatives in diversifying/defensive areas

Image

Our Commitment as Fiduciaries


Since we serve as fiduciaries for all of our clients, we understand the importance of developing institutional-quality operational controls and compliance standards, and we have invested in leading edge systems and technologies to safeguard our clients’ personal information. We are committed to employing the highest standards of professional conduct across all parts of our business, and we have established numerous policies and procedures based on industry best practices.

Operations &
Compliance

  • Review and affirm policies and procedures based on best practices annually
  • Leverage third-party compliance, legal, IT and accounting relationships
  • Partner with industry-leading independent custodians to safeguard client assets
  • Offer client portal with institutional-quality performance reporting

Learn More

Information
Security

  • Utilize multi-factor authentication and email encryption for secure data transmission 
  • Policies and procedures to mitigate fraud risk for third-party cash transfers
  • Utilize cloud-based portfolio management system 
  • Utilize cloud-based platform to maintain all internal documents, host our email server, and store all client data 
  • Maintain cyber liability policy

Learn More

Key Criteria
for ETF Selection

  • Levered or “ultra” ETFs
  • Inverse ETFs
  • Exchange Traded Notes
  • Esoteric or illiquid markets

Learn More

Technology &
Data Security

  • Review and affirm policies and procedures based on best practices annually
  • Leverage third-party compliance, legal, IT and accounting relationships
  • Partner with industry-leading independent custodians to safeguard client assets
  • Offer client portal with institutional-quality performance reporting

Learn More

Interested in More Information?


Learn More

Find Out if Blue Edge Capital is a Fit for You


We welcome the opportunity to connect and hear your story. As we begin the mutual discovery process, we prioritize client education and set clear expectations so that you feel fully informed, confident, and empowered in your decision making. Please call Macon Clarkson at 804-673-7403 or fill out this form to request an introductory conversation.
  • This field is for validation purposes and should be left unchanged.