CM Moderate Plus Allocation

Strategy Facts

Inception Date January 1999
Minimum Investment $500,000
GIPS® Compliance Contact Us
Literature Contact Us
Portfolio Managers Team Managed

Our Commitment

It is one of our core beliefs that as the advisor, we invest our own money in the same investments as our private clients and mutual fund shareholders. Therefore, our officers, employees, and their families have a substantial amount, if not all, of their investments in one or more of the private account and mutual fund strategies that we manage.

Strategy Name

CM Moderate Plus Allocation

Strategy Type

Higher Equity Exposure Within a Balanced Portfolio Framework

Objective

Long-Term Growth of Capital and Current Income

Investment Strategy

  • We focus on companies that we believe are selling at deep discounts to our appraisals of their intrinsic values.
  • The valuation methods we use to determine the intrinsic value of a company include one or more of the following: historical analysis, segment analysis, free cash flow analysis, acquisition analysis, leveraged buyout analysis, and discounted cash flow analysis.
  • Included in the valuation process are both quantitative and qualitative factors to help evaluate the key revenue drivers of the business, its risks/headwinds, its potential rewards, its unique characteristics, if any, and the industry dynamics in which the company participates.
  • This strategy is not constrained by market size or capitalization. Therefore, a significant portion of the portfolio's equities may be invested in micro-, small-, medium-, or large-cap companies, with one market capitalization being more heavily-weighted over the other at any given time
  • The fixed-income portion of this strategy is primarily invested in high- and medium-grade U.S. corporate and government bonds, while at the same time maintaining maximum flexibility with the maturity structure.
  • Because of its strict buying discipline and investment parameters, this absolute-return strategy may carry larger cash equivalent positions than strategies whose target is to be fully-invested. There are no restrictions on the levels of cash equivalents that this strategy may hold, and there is no time period in which this strategy must be predominately invested in equities. Thus, accounts may carry greater than 50% cash equivalent positions for extended periods of time.
  • Alternative investments to common stocks, fixed income securities, and cash equivalents that may be used to achieve our objective include, but are not limited to, mutual funds, exchange-traded funds ("ETFs"), warrants, and rights.


Century Management ("CM") is an independent registered investment adviser.

Accounts in CM Moderate Plus Allocation composite have limited equity exposure, usually between 60% to 80% of the portfolio.

* The CM Moderate Plus Allocation composite compares itself to a custom made hybrid index. This custom hybrid index is a combination of 80% Russell 3000 Value Index ADJ and 20% Barclays Capital U.S. Aggregate Bond Index ADJ.  

CM claims compliance with the Global Investment Performance Standards ("GIPS®"), examined from the strategy’s inception, January 26, 1999, through June 30, 2014. This performance was prepared by CM and presented to and examined by Ashland Partners & Company, LLP. Ashland Partners continues to verify the compliance of CM with the requirements of GIPS® on a firm-wide basis each calendar quarter.

This GIPS® verification and performance examination is generally one to two quarters in arrears of the most recent performance information presented. Thus, while performance figures shown after the verification date are believed to be accurate, they are preliminary and have not yet been examined. To receive a complete list and description of the Firm’s strategies or a GIPS® compliant presentation, please contact us at 1-800-664-4888, or write to us at 805 Las Cimas Parkway, Suite 430, Austin, Texas 78746.