A different approach to Managing Money
Established in 1986, Billeaud Capital Management, Inc. (BCM) is an independent Registered Investment Advisor. We manage in excess of $250 million in investment portfolios for individuals, company retirement plans, corporations, endowments, and trusts. Our mission is to design, implement, and provide ongoing
management of investment portfolios that seek capital appreciation while actively managing risk.
Our reasoned and disciplined approach to investing combines what we refer to as Global Economically-Diversified Portfolios with an active approach to managing risk.
The first leg of this approach is based upon the academic research of Modern Portfolio Theory, the Capital Asset Pricing Model, and the Efficient Market Hypothesis. The second leg of our approach - the risk management component - incorporates our proprietary BCM Market Risk Model.
Our objective is to construct portfolios that achieve above average, positive returns over complete economic and financial cycles. We pursue competitive results in extended strong market environments and relative outperformance in difficult economic environments.
A fiduciary duty is a relationship of confidence or trust regarding the management of money or property between two or more parties. As an independent RIA, we serve in a fiduciary capacity for our clients. Our fees are based on assets under management, rather than commissions, and we never take possession of client assets. We believe this best aligns our interests with those of our clients.
Global and Economically
Each phase of the economy generally favors a different asset class.
The Theory of Diversification.
Extensive academic research, such as the Nobel prize-winning discipline of Modern Portfolio Theory, the Capital Asset Pricing Model, and the Efficient Market Hypothesis, have provided investors, over many decades and economic cycles, with a solid foundation upon which to build investment portfolios. At the heart of this research is the understanding that different asset classes (such as domestic and international stocks, bonds, real estate, commodities and cash) are unique in their inherent risk, the potential rate of return they offer, and the way in which they are correlated to each other, particularly during different phases of the economic cycles.
This is the foundation upon which we design our portfolios. We first seek to thoughtfully allocate our capital among a group of non-correlated asset classes in order to provide clients with balance throughout the course of varying economic and market cycles.
We then couple this allocated approach with BCM’s proprietary risk management tool.
Active Risk Management
The BCM Market Risk Model
Building upon the foundation of our Global Economically-Diversified Portfolio design, we incorporate additional risk management through the use of our proprietary BCM Market Risk Model.
Based on more than 27 years of research, development, and application, the BCM Market Risk Model is our primary risk-assessment tool. The Model utilizes economic, financial, and monetary data to assess the risk climate present across financial markets. This assessment results in either a Favorable (green) or Unfavorable (red) risk outlook, which in turn is used to guide the asset allocation decisions of our portfolios.
When the Model registers a favorable risk outlook (green), our portfolios will be more heavily allocated towards higher-risk asset classes such as stocks. When the Model registers an unfavorable outlook (red), we reduce our allocations towards higher-risk asset classes and place a heavier weighting towards lower-risk asset classes such as short-term bonds or cash equivalents.
By adjusting our exposure to market risk in accordance with the outlook of the Model, we attempt to realize competitive market returns over a full economic cycle, with less volatility and a mitigation of potential account declines and drawdowns during difficult market periods.
All Weather Strategies*
The intersection of our Global Economically- Diversified Portfolio design and the outlook of the BCM Market Risk Model results in the creation of the BCM All-Weather Strategies. Each of these strategies offers clients a combination of efficient and effective diversification across independent asset classes coupled with BCM’s unique approach to managing portfolio risk. Based on the client’s risk tolerance, time horizon, and other individual circumstances, one of these strategies is selected for their portfolio.
By rigorously adhering to our investment approach, we seek to reach a balance of capital appreciation and income coupled with an ever-vigilant view towards managing potential market and economic risk.
BCM also makes portfolio strategies available in a Values-Based format, wherein companies can be avoided that participate in issues some investors may not want to have included in their investment portfolio.
*These portfolios are for illustration purposes only.
The Charles Schwab Corporation is one of the nation’s leading providers of financial services. Since 1987, Schwab has provided independent advisors such as BCM with the custodial services needed to efficiently and effectively serve the needs of clients.
Dimensional Fund Advisors (DFA) is known as a pioneer, innovator, and leader in the science of portfolio design, construction, and implementation. In conjunction with affiliated entities and academics, some of which have earned the Nobel Prize for their work in economic and investment theory, DFA works through a select group of registered investment advisors. BCM is pleased to have a relationship with DFA and to offer their funds, among others, as part of our client portfolios.
BCM manages money on a discretionary basis for a fee according to a unique and proprietary approach which is greatly detailed on this website. This is what we do. What we don’t do is sell anything. We are experienced, focused, disciplined, and accessible to our clients.
Client accounts are established at Charles Schwab & Company. We never take possession of any client money. Schwab sends monthly statements and trade confirmations directly to clients, and online access to account information is readily available.
In turn, we deliver quarterly reports to clients. These reports include a client letter, performance reports, and a billing statement. Our management fees start at an annual rate of 1% and decline for larger accounts. Fees are charged in arrears, are prorated, and there are no upfront or backend charges.
We believe we have something of real value to offer to risk-adverse, long-term investors. If you have $250,000 or more of investment assets, we invite you to contact us for more information.
JOSEPH S. BILLEAUD
JOSEPH S. BILLEAUD (“Bo”) is the founder and president of Billeaud Capital Management, Inc. Joseph earned a BS in Chemical Engineering from the University of Louisiana at Lafayette in 1979 and spent fifteen years working as a petroleum engineer with Chevron USA and Apache Corporation. During this fifteen year period, he developed the market risk-control models that he used to initially guide and manage his personal investments, as well as those of family and close friends. In 1986, he established BCM. Word-of-mouth endorsements and organic growth resulted in Joseph being able to effect a formal career change in 1996. Since that time, he has guided BCM’s growth from its humble origins of a one man shop managing roughly $6 million dollars to an established and respected firm now managing more than $250 million dollars for individual, corporate, trust, retirement and 401(k) accounts.
GEORGE W. HOLLAND, IV
GEORGE W. HOLLAND, IV joined Billeaud Capital Management in 2009. Having started in the investment business in 1989, he has provided independent investment and financial advisory services to clients throughout his career. George has held management positions at an independent trust company and a broker dealer/investment advisory firm, in addition to running his own investment advisory business. George earned a B.A. degree in Economics and a Masters in Business Administration from Louisiana State University.
HILLE DOMINGUE assists Billeaud Capital Management in matters of compliance, administration and research. Hille is an accounting graduate of the University of Southwestern Louisiana (now University of Louisiana at Lafayette), and a law graduate of the Louisiana State University Law School. After 15 years of private practice as a CPA and an Attorney, Hille served as President and Chief Operating Officer of a regional publication company until it was sold to Thomson Corporation. Since that time, Hille has been involved in a number of business projects as an investor, as part of management, and as a consultant.