When assembling an equity portfolio, context matters. Any number of equity funds and strategies may be good for an investor, but the real question is how they fit together.
We think Reaves can be a valuable complement to other strategies in a broad portfolio for a simple reason: We operate in niche pockets of the market many other portfolio managers seem to avoid. During a call in May of this year, hosted by Havener Capital Partners, for the benefit of investors, our president, John Bartlett, explained:
“I think it's pretty well documented that fund managers have … financial incentives to have a beta above one. It's really their best chance for outperforming. And so, obviously, low beta stocks don't really fit that bill. Utilities are complicated and they're not a huge part of the S&P 500. So, a lot of fund managers … feel willing to punt on the space. They're only about 2-3% of the total market cap of the S&P 500 … it's a place where because of its complexity, you really do have an opportunity and it's a place where value really matters…”
To hear more of John’s comments and learn about how Reaves strategies may complement the rest of your equity allocation, we invite you to listen to the full call. Please click graphic below to gain access to the call replay.