“Generally speaking, the equity allocation in our portfolios are at or near the low end of investment policy ranges, and, conversely, our fixed income allocation are at or near the high end of their allocation ranges. In both asset classes out primary focus is “quality.”…We are avoiding exposure to commodities, commodity-oriented stocks, emerging market stocks and bonds…Today these investments are far too popular with the investment “crowd”…we believe these areas of the markets are vulnerable to significant price declines.”

– ACM Quarterly Commentary, May 12, 2011

“…we were in an excellent position to take advantage of lower prices. Across our portfolios, we took profits in our long and intermediate bonds and meaningfully increased our equity exposure at or near the market lows in August.”

– ACM Quarterly Commentary, October 27, 2011

Given the relative magnitude of the summer stock correction and bond market rally, we responded by increasing stock market exposure significantly and moderating our quality bias within that exposure. Conversely, we lowered our bond market allocations and reduced the interest rate sensitivity of our remaining allocation. These moves allowed our portfolios to better participate in the strong stock market rally over the past six months.

– ACM Quarterly Commentary, April 23, 2012

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FROM JULY TO SEPTEMBER 2011, THE S&P 500 DECLINED 18%.  MEANWHILE, MEASURED FROM PEAK TO TROUGH, THE BLOOMBERG COMMODITY INDEX FELL 22% AND EMERGING MARKET STOCKS DROPPED MORE THAN 40%.  DURING THE SAME PERIOD, LONG-TERM U.S .TREASURY BONDS DELIVERED BETTER THAN 29%.  SUBSEQUENTLY, THE S&P 500 BOTTOMED ON OCTOBER 3RD, 2011, RALLIED 15% THROUGH YEAR END, AND WENT ON TO GAIN 16% IN 2011.   

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