Beacon Street Capital, LLC, an independent investment advisor located in Atlanta, Georgia, was founded in 2001 to acquire the proprietary stock selection formulas and methodology created by Terry Burke. Mr. Burke has used this quantitative/qualitative methodology successfully since developing it in 1992, and continues his portfolio management style as co-portfolio manager for Beacon Street Capital.
We are an active, growth oriented large-cap manager but we do not exclude "value" stocks with strong growth potential. Our investment objectives are accomplished by exploiting market inefficiencies related to security-specific accounting anomalies applied to a long-only equity strategy. We offer three investment strategies as Separately Managed Accounts:
Although we expect to own our investments for the long run, we are not averse to selling when growth potential turns negative. In fact, with the exception of the Institutional LCG, we default to cash when few stocks meet our criteria and our individual clients appreciate this build up of cash in a weak market. Furthermore, we invest our own assets alongside our clients in the same strategy and we report our results each month to many "emerging manager" databases (Wilshire Odyssey, Leading Edge Advisors) as well as others such as Informa (PSN), eVestment Alliance, Morningstar, and Money Manager Review.
Terry E. Burke: Chief Executive and Co-founder. Mr. Burke is responsible for portfolio management and general executive management. Mr. Burke's entire 30 year career has been involved in analyzing companies from the ground level, first with a private CPA firm and then as founder and CEO of DataBase Research Corporation, a financial consulting firm to public and privately held companies. His special insight into a company's earnings power led him to seek a method of quantifying a company's internal growth potential. By studying the growth characteristics and pricing relationships of over 1700 publicly traded companies he was able to develop a quantitative/qualitative methodology in 1992 that was accounting based, company specific, and new to the investment community. This methodology has been used successfully since development to extract excess "risk-adjusted" returns from the market due to the superior combination of quantitative discipline and qualitative judgment overlay. Mr. Burke received a B.A. degree in 1970 from the University of Florida with a double major in Finance and Business Administration, and did post baccalaureate work there in accounting.
Herron P. Weems: Mr. Weems is Managing Director of Beacon Street Capital. Mr. Weems serves as portfolio manager with additional responsibilities in the areas of marketing and client services. He has over 23 years experience in the securities industries with Salomon Brothers, which he joined in 1977 and with Salomon Smith Barney after the merger of Salomon Brothers and Smith Barney, before co-founding Beacon Street Capital. In 1980 he joined the fledgling mortgage department of Salomon Brothers under Lewis Ranieri and helped to build the department into a leadership position on Wall Street. He moved to Atlanta with Salomon in 1983, and in 1984 took over the leadership role of the mortgage sales effort for the Southeastern region. In 1995, Mr. Weems became Manager of the Atlanta office of Salomon Brothers with the overall responsibility for all sales activities in the Southeast, and was named Managing Director shortly thereafter. In 2000, he left Salomon Smith Barney to concentrate on private investments and community activity. Mr. Weems received a B.A. in 1975 from Vanderbilt University with a double major in Economics and Business Administration, and earned an MBA in 1977 from the University of Chicago Graduate School of Business with concentrations in Finance and Accounting. He is a member of the Leadership Atlanta Class of 1998 and currently serves as Vice-Chairman of the Board of Trustees of Literacy Action. Inc.