top of page

2Q19 Model Portfolio Update

Updated: Dec 6, 2019

June 2019

Dear Client,

In 2Q19, we entered the quarter with relatively high overweight in Asia. During April/May we initially reduced exposure in Asia, eliminated exposure to Brazil and in US Biotechnology in order to reduce risk exposure ahead of 1Q19 earning season. Given that the trade resolution will unlikely impact 2Q, expectations running high for its resolution and based on consensus estimates on S&P500 earnings which according to Factset should decline in 1Q19, we chose to reduce risk. This is especially true in light of most global stock markets having stellar 1Q19 returns. In addition, we trimmed our position in the housing/construction sector to reflect the sector’s outperformance as well as long-term interest rates rising in reflection of recession fears waning. As markets corrected in late May, we reinitiated more exposure to Asia, particularly in China given relative valuations to the US, better growth prospects and loosening monetary policy there.

Our US exposure, we had elevated weightings in value vs growth sectors given risk reduction being undertaken across the growth models given our belief that value would outperform growth in the next 12-18 months.


Leonard Brecken

Founder/Portfolio Manager

Brecken Capital Advisors, LLC

Brecken Capital Advisors, LLC (“BCA”) is a fee only Investment Adviser registered with the State of North Carolina. All views, expressions, and opinions included in this communication are subject to change. This communication is not intended as an offer or solicitation to buy, hold or sell any financial instrument or investment advisory services. Any information provided has been obtained from sources considered reliable, but we do not guarantee the accuracy, or the completeness of any description of securities, markets or developments mentioned. We may, from time to time, have a position in the securities mentioned and may execute transactions that may not be consistent with this communication's conclusions. Please contact us at 917-701-5231 if there is any change in your financial situation, needs, goals or objectives, or if you wish to initiate any restrictions on the management of the account or modify existing restrictions. Additionally, we recommend you compare any account reports from BCA with the account statements from your Custodian. Please notify us if you do not receive statements from your Custodian on at least a quarterly basis. For more insights see our website and disclosures found there at BCA.

10 views0 comments

Recent Posts

See All


bottom of page