This $2 Billion UBS Team Is Pushing Bonds Over Equities
Team Name: Bel-Air Wealth Management
Firm: UBS Wealth Management
Senior Members: John Acker, David Selig, Mark Tunney, Todd Feiereisen, John Buchanan
Location: Los Angeles, CA
Team Custodied Assets: $2.1 billion
Background: John Acker grew up outside of Los Angeles and majored in accounting at the University of Colorado Boulder. After finishing graduate school at the University of Southern California, he did several stints working at merchant banks before deciding to cut down on travel and be closer to his family. He joined UBS in 2006 and formed the team in 2009—it wasn't until 2017, when David Selig and Todd Feiereisen joined, that the current iteration of Bel-Air Wealth Management was formed. With a team of nine in total they service some 320 clients—roughly half of which are athletes, entertainers and celebrities.
Investment Philosophy/Strategy: The team takes a conservative approach to managing client assets: "On the equities side, we're more dividend and value oriented than growth," says Acker. While that may mean clients are less likely to outperform the market, it does give them more downside protection, he argues. In the last five years, his team has transitioned from using mutual funds to separately managed accounts and ETFs, while Acker additionally highlights the utility of all-in-one accounts from internal UBS managers with no fees. On the fixed income side, the team has been lengthening duration in order to lock in higher rates for clients. "There was way too much money in cash for the last year and a half and while it has paid well, as the Federal Reserve decreases rates people will earn less," says Acker. The majority of clients are also invested in alternatives like private equity, private credit and real estate.
Investment Outlook: A self described long-term optimist when it comes to markets, Acker likes to remind clients that historically markets move higher more often than not. Still, he remains wary of markets getting too frothy: "After two great years, equity valuations are high, so it isn't a bad time to hedge a bit," says Acker. "There's now more bang for your buck in bonds than equities." As a result, his team have in recent months been rebalancing client portfolios by slightly reducing exposure to equities and adding more fixed income. Acker expects the Federal Reserve to reduce interest rates again in December and next year, though he notes that inflation may remain high over the long run. "It depends on what the President will do with trade policy, but tariffs are ultimately inflationary and our federal debt is awful," he says. "That's why long term rates have gone up even though the Fed has reduced rates."
