Portfolio Expansion
BAM Wealth Management Expands Portfolio With $13.8M in New Energy and ETF Investments
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Key Points
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The FT Vest U.S. Equity Buffer ETF–June was BAM Wealth Management’s third-largest holding, representing 3.5% of its portfolio; BAM owned 92,263 shares at the end of the second quarter.
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The FT Vest U.S. Equity Moderate Buffer ETF–May accounted for 2.7% of BAM Wealth Management’s holdings and ranked as its seventh-largest position, with the firm owning 100,561 shares.
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First Trust Core Investment Grade ETF represented approximately 1.6% of BAM Wealth Management’s portfolio and was its 15th-largest holding; BAM owned 122,689 shares, or 0.10% of the ETF, at the reporting date.
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Among other investors, Cetera Investment Advisers held 255,390 shares of the FT Vest U.S. Equity Buffer ETF–June after increasing its position by 24.1%, while Faithward Advisors more than doubled its stake, raising it by 103.2%.
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Cantor Fitzgerald maintained a neutral rating on W.R. Berkley and raised its price target to $74, according to the report.
BAM Wealth Management deployed $13.8 million across stocks and ETFs in the second quarter, signaling a shift toward buffer strategies and energy exposure. The firm bought $614,000 of Chevron and $739,000 of insurance stock W.R. Berkley, while loading up on equity-buffer ETFs designed to limit losses during market downturns DefenseWorld.
The largest purchase was $5.53 million of the FT Vest U.S. Equity Buffer ETF–June, which became BAM's third-biggest holding at 3.5% of its portfolio. The firm also owns roughly $4.33 million in the May version of that same buffer ETF, showing a clear bet on hedged equity strategies as market volatility remains a concern.
Buffer ETFs Become Core Holdings
BAM Wealth Management's largest Q2 purchase was the FT Vest U.S. Equity Buffer ETF–June at $5.53 million DefenseWorld. The firm now owns 92,263 shares, making it the firm's third-largest position. These buffer ETFs cap upside gains but protect investors from steep downside losses—a strategy gaining traction as uncertainty rises.
The May version of the same ETF drew $4.33 million, placing it seventh in BAM's portfolio at 2.7% of holdings. BAM owns 100,561 shares. Together, the two buffer ETFs represent roughly 6% of BAM's total assets, underscoring confidence in a defensive approach for 2024 and beyond DefenseWorld.
Energy and Insurance Bets Signal Risk Appetite
Despite the defensive ETF focus, BAM added $614,000 to Chevron and $739,000 to W.R. Berkley, a specialty insurance underwriter. The dual bet reflects a split strategy: hedge with buffers, but chase yields in energy and insurance where valuations remain attractive DefenseWorld.
Analyst Cantor Fitzgerald maintained a neutral rating on W.R. Berkley while raising its price target to $74 DefenseWorld. The upgrade hints that BAM's timing may prove sound if the insurer delivers on earnings growth in coming quarters.
Investment-Grade Bonds Gain Traction
BAM increased its stake in the First Trust Core Investment Grade ETF by 42.4%, bringing holdings to approximately $2.56 million DefenseWorld. The position ranks 15th in the portfolio at 1.6% of assets, with BAM owning 122,689 shares or 0.10% of the total ETF DefenseWorld.
The move mirrors a broader institutional pivot toward higher-quality bonds as recession fears ease. BAM's boost signals confidence that investment-grade spreads offer value without excessive risk, especially after a brutal 2022 for fixed income.
Peers Pursue Similar ETF Strategies
BAM is not alone in backing buffer ETFs. Cetera Investment Advisers raised its FT Vest U.S. Equity Buffer ETF–June stake by 24.1% to 255,390 shares DefenseWorld. Faithward Advisors took an even bolder step, more than doubling its position with a 103.2% increase DefenseWorld.
The coordinated buying among institutional investors suggests confidence in the buffer-ETF thesis heading into the second half of 2024. These products appeal to risk-averse wealth managers and retirees seeking upside capped at 8–12% while downside protection kicks in after 15% losses.
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