Active Money Management

Investment Objective
• We seek long-term capital appreciation and to protect assets in down markets.
• Management Fees and Minimums
• Annual Management Fees 1.50% (For accounts larger than $1,000,000 fees are negotiable)
• Minimum account size of $100,000

Portfolio Composition

We invest in both domestic and foreign equity securities and debt securities. We buy companies of any size market capitalization. We will also use select ETF’s (Exchange Traded Funds) and ETN’s (Exchanged Traded Notes) when we want to focus on area outside of typical common stocks such as bonds, country specific funds, commodities, currencies and inverse positions or short funds.

Allocation

Our portfolio is non-diversified and will typically hold fewer positions than the typical stock mutual fund, historically maxing out at about 25 positions. We think it makes sense to invest more in our top choices than in investments we believe are inferior opportunities for the sake of diversification. As such, the portfolio may be sector or capitalization heavy at any given moment as we position it for growth while minimizing volatility on the downside.

Strategy

We have a disciplined investment strategy combining top-down macroeconomic analysis, bottom-up stock selection, technical and fundamental research methods. While we prefer to hold good companies for the long haul, we believe there are times when we need to go defensive if we anticipate a bear market in order to preserve wealth. If we believe there is a pending bear market we may raise our cash levels, invest in funds that trade inverse to the indices and buy “safe haven assets” that have a historical negative correlation to the market. However if we are convicted that the current market is entering or will continue to be in a bull market then we will focus on the areas of the market which we believe will have the greatest potential forward returns. The portfolio will not try to time the insignificant ups and downs of the market, but we will attempt to anticipate the major turns in the market that have greater than 15% movements. If we anticipate a major turn in the market we will adjust the portfolio accordingly. Although there are constant adjustments according to major market turns the portfolio will attempt to hold at least one third of the portfolio in non-cyclical, good solid companies that have a history of doing well during good and bad economic times.

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