Bradway Capital Enters Partnership With Innovative Bicycle Company

We are pleased to announce that the Bradway Capital Insight Fund has entered into a partnership with Serotta, one of the world's top manufacturers of handcrafted bicycles. The text of the Serotta news release follows:

Serotta, the Brand That Drove Innovation into the Bicycling Industry, Announces Future Plans
Ben Serotta ramps up research, design and production through new partnership.
SARATOGA SPRINGS, NY (May 9, 2012) - Serotta, one of the world’s premier handcrafted performance bicycle manufacturers, has announced a new partnership that will fast-track the company’s research, design and production. The company has entered into a partnership agreement with Bradway Capital. “Bradway brings us the depth of resources and management expertise that we need to expand our business and bring innovation to the next level,” stated Ben Serotta. “I am excited about the prospects of allowing an experienced management team to run the day-to-day operations while I turn my full focus to building the world’s best bicycles right here in Saratoga Springs, NY.”

Bradway Capital was founded by Brian Case, who currently serves as its managing partner. Case, an avid rider, former shop owner and partner of Fit to Ride, an advanced bicycle fit studio, has been fitting and selling Serotta bicycles since the late ’80s. “There are many cycling enthusiasts at Bradway Capital,” said Case, “and we are thrilled to be part of the Serotta experience, assisting in bringing the next generation of Serotta bikes to market. We are not just partners - we have ridden Serottas for years.”

“This is great news,” stated Chris Jacobson, owner of Sports Garage in Boulder, CO, a Bicycling Magazine Top 100 Shop. “As an active seller of Serotta since 1994, I’ve witnessed the stunning technological and bike/body advancements created and implemented by Ben and his organization. Serotta constructs each and every frame in the United States by the hands of artisans, so that the bike can disappear beneath its rider to reveal the true beauty of cycling.”

Video: Ben Serotta on building the world’s best bicycles

Photos: Serotta Gallery

Infographic: Serotta Innovation

Longleaf: Keep Investment Focus on the Long Term

The managers of the Longleaf Small-Cap Fund have posted their quarterly letter to shareholders, which includes a reminder about the importance of distinguishing between risk and stock market volatility. 

"Short-term market fluctuations tell nothing about long-term investment outcome or business worth," Mason Hawkins and Staley Cates write in their letter. They note that since 1970 the major stock market indices have recorded declines in more than 20 percent of one-year periods, while rolling 10-year returns have rarely been negative. Extend the holding period to 15 and 20 years and performance has always been positive, they note.

To read their full letter, click here.

For the quarter, the Small-Cap Fund returned 9.9 percent, trailing the 12.4 percent return of the benchmark Russell 2000 Index. The fund has beaten the benchmark return in the past one-, three- and 10-year periods.

Longleaf Small-Cap is a component of the Bradway Strategic Portfolio, which consists primarily of investments with top money managers.

Client Wins Election to East Longmeadow School Committee

Congratulations to client Deirdre Mailloux, who won a seat on the East Longmeadow School Committee in town elections last week. She trounced her two opponents in a landslide.

To read The Republican's story on the election, click here.

Client Spearheads Springfield Rowing Revival

Hats off to Jonathan Moss, a client who has led the effort to restore rowing to Springfield. As president of the Pioneer Valley Riverfront Club, Moss proposed turning a city-owned building in North Riverfront Park into a headquarters for rowing and biking.

The city, which sought proposals for the site a year ago, earlier this year accepted the club's bid to bring healthy activities and lifestyles to Springfield as part of its mission to embrace river-related activities. The site is bordered by the Connecticut River, the North End Bridge and the city's four-mile bike path, making it ideally situated for rowing, canoeing, kayaking, biking and running.

To read The Republican's story on the club, click here.

To learn more about the club, visit its website, pvrowing.org.

Bradway Financial and Fit to Ride are among the club's financial supporters.

Wells Fargo Advantage Growth Managers Expect Rally to Continue

The Wells Fargo Advantage Growth Fund returned 19.4 percent for the first quarter, well ahead of the 14.5 percent return of its benchmark, the Russell 3000 Growth Index.

Fund managers continue to remain optimistic despite the market's strong rally, noting that there appears to be continued growth potential as the U.S. economy recovers and corporate profits remain high.

To read their full quarterly report, click here.

Wells Fargo Advantage Growth is a component of the Bradway Strategic portfolio, which consists primarily of investments with top money managers.

Oppenheimer Manager: Expect Emerging Markets to Lead Global Growth

The Oppenheimer Developing Markets Fund returned 14.8 percent for the first quarter, running slightly ahead of the 14 percent return generated by its benchmark, the MSCI Emerging Markets Index. Developing markets rebounded strongly during the quarter, regaining 75 percent of the value the index lost during a challenging 2011.

In his letter to shareholders, fund manager Justin Leverenz noted that emerging markets outpaced their developed market peers and continue to deliver higher economic growth rates. This bodes well for the fund and its investors as the U.S. continues its slow recovery and Japan and Europe face difficulties with demographics and debt.

To read his full letter, click here.

Oppenheimer Developing Markets is a component of the Bradway Strategic Portfolio, which consists primarily of investments with top money managers.

Oakmark Equity & Income Posts Letter to Shareholders

Clyde McGregor, manager of the Oakmark Equity & Income fund, has posted his first-quarter letter to shareholders. The fund gained 8 percent in the quarter, exactly the same as the fund benchmark, the Lipper Balanced Fund Index.

In the letter, McGregor discusses the link between low interest rates and the fund's recent volatility; why the fund favors government bonds over corporate bonds; and covers the fund's purchase of several new stocks.

Oakmark Equity & Income is a component of the Bradway Strategic Portfolio, which consists primarily of investments with top money managers.