Ron H. Bell

Functions as a College/University

Bell Capital Management's (BCM) investment decision process is predicated on a weight of evidence approach. The core of the investment process starts with their stock market composite, which contains over different indicators. These indicators are categorized as internal (tape action--the breadth of the market), monetary, sentiment, valuation and economic. The reading from the stock market composite is reviewed weekly by the investment committee and a percentage exposure the Flexible Portfolios have to the stock market is chosen. Exposure to stocks can be above or below the composite reading, depending upon additional factors affecting the market. Once the target allocation is determined, the sectors of the stock market are ranked from the most attractive to the least attractive. The top sectors are held in the portfolio, overweighting the top ranked sector. These sectors are large-cap growth, large-cap value, small-cap growth, small-cap value, international and specialty (which includes utilities, real estate, Internet, gold, etc.). Once the stock allocation and its market sectors are determined, the next decision is to determine if the remaining assets will be deployed to bonds or the money market. BCM has a bond market composite, similar to the stock market composite, that indicates the appropriate exposure to bonds. They rank the bond sectors in the same manner as stock sectors. The top sectors are held in the portfolio, overweighting the top ranked sector. These bond market sectors are government, corporate investment grade, corporate high yield, convertible, tax-free municipal and international. The remaining percentage of the portfolios is invested in money markets.

Functions as a College/University