The Burney Master Portfolio

The Master Portfolio utilizes a classic investment approach with a focus on solid, undervalued stocks and expert stock selection.  Established at the company's founding in October 1974, its documented long-term performance is the result of the consistent application of Burney's proprietary analytical methods.

Overview

Though most material information is "efficiently" embedded in the price of a stock, the market makes systematic pricing errors that can be identified and exploited using quantitative techniques. Employing proprietary methods developed over the past half century, Burney analyzes a factor library containing over a thousand descriptors of a company's Growth, Valuation, Profitability, Safety, and Technical attributes. Factors associated with excess return are used in analytical models that score stocks based on their excess return potential.

We offer clients the option to have their portfolios managed to replicate the Master Portfolio.


Master Inception Graph


This chart presents average annualized returns from October 21, 1974 to December 31, 2017.
The Burney Master Portfolio date of inception was October 21, 1974.

1 The Master Portfolio performance results reflected here are through [most recent date] and cover two periods. The first period is from October 21, 1974 until December 31, 1999 and is represented by the Master Model. The Master Model is a model portfolio which was established to provide a measure of performance of the Burney Analytical system. Performance is presented net of commissions and management fees and reflects the reinvestment of dividends and capital gains but does not reflect the impact of taxes and is not independently audited. There are inherent limitations in all model portfolios. For example, model results may not represent actual transactions and may not reflect the impact that material economic and other market conditions might have had on the Portfolio Manager’s decision making. The Master Model seeks to overcome some of these limitations through the unique way in which it is managed. It was initiated with the first ten stocks purchased for clients after the Company’s founding in October 1974. For the Master Model, an assumed $10,000 was invested in each of ten stocks on the day and at the price per share that each stock was actually purchased for a client. A transaction is recorded for the Master Model when an actual transaction is executed in a client’s portfolio. Proceeds from sales are reinvested for the Master Model in the same securities selected for a client’s portfolio. While no back-testing is performed, this method of matching an actual client account transaction with a virtual transaction in the Master Model helps to lessen some of the inherent limitations in model portfolios.

The second performance period depicted here is from January 1, 2000 to 12/31/17 and is represented by the Master Composite. The Master Composite is comprised of actual accounts that have replicated the Master Portfolio since January 1, 2000 and are managed by Burney Partners, an affiliate of the Burney Company. The Master Model and the Master Composite combine as the Master Portfolio to provide a measure of ongoing investment performance using the Burney Analytical System.

Past performance is not a guarantee of future results. Equity investments include the risk of loss. Individual portfolios are specially tailored to meet the investment objectives and risk tolerance of the client and as a result, may not hold the same stocks that comprise the Master Portfolio. Most clients elect to have personalized portfolios; however, some client portfolios mirror the Master Portfolio and their respective performance results obtained do not differ materially from those shown here. Portfolios with significant fixed income and money market investments have underperformed the Master Portfolio.

We compare the performance of the Master Portfolio to the Standard & Poor's 500 Index (S&P 500) as this index is considered a surrogate for the overall market and is composed of the stocks of 500 of the largest companies listed on U.S. exchanges. The S&P 500 is market-cap-weighted, which means that the importance of individual stocks in the index depends upon the stock's market value. The performance of the S&P 500 includes dividends, but not commissions and management fee expenses.

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The Burney Advantage

While emotions often dominate in the short run, economic fundamentals drive stock prices over time.