ASSET MANAGEMENT

We are a fee-only, indepedent asset management firm with an entirely unique approach to delivering absolute returns for our clients.  Our absolute return strategies are comprised of two primary components:

  1. Global, Macroeconomic Analysis (Global/Macro) is a term used to describe a big picture outlook on the long-term trends in the market.  Global/Macro asset managers will look to find deeply undervalued securities to buy and sell or short securities with an unsustainable business model.  Asset Management firms employing this type of strategy are not limited to sectors, market capitalizations, weightings or a specific target percentage of market exposure on the long or short side.  We can invest in any security that we believe has the potential to deliver superior risk-adjusted returns.
  2. Investment Analytics (IA) refers to the subjective interpretation of analytical data and statistics.  Asset managers use analytics to logically deduct which investments provide the greatest risk/reward opportunties for their clients.  Over the better part of the past decade, we have developed a set of proprietary analytics tools designed to measure a security's momentum, relative strength and sentiment which we refer to as our "Market Analytics Program" (MAP).  MAP performs thousands of calcuations each day which help us discern which of our investment themes should be most heavily weighted in our portfolios.  The combination of our Global/Macro analysis and our MAP application provides us with the opportunity to deliver superior returns compared to the majority of asset management firms.

 

ASSET MANAGEMENT STRATEGIES

We invest our clients' accounts in four primary strategies.  When prudent, we will blend strategies and utilize cash and Treasury securities to meet a client's individual risk tolerance profile.

CORE PORTFOLIO

  • Target Clients: Clients seeking capital preservation with the opportunity for appreciation in excess of inflation.  Assets held in non-margin accounts including IRA's.  Suitable for clients in or approaching retirement.
  • Long-Term Objective: Maintain and grow clients' purchasing power relative to inflation while minimizing volatilty in order to protect accounts distributing an income.
  • Account Minimum: $250,000
  • Advisory Fees: 1.5%

INCOME PORTFOLIO*

  • Target Clients: Clients seeking an income for retirement and are primarily concerned with safety of capital.  The strategy focuses on providing an income in excess of traditional income strategies while seeking to hedge the risk of inflation. 
  • Long-Term Objective: Protect the clients principal and purchasing power.
  • Account Minimum: $250,000
  • Advisory Fees: 1.5%

DYNAMIC LONG/SHORT PORTFOLIO

  • Target Clients: Clients seeking capital appreciatin with a higher tolerance for risk and volatility.  Assets held in margin accounts as the strategy employs leverage.  Ideal for clients looking to diversify away from traditional investment strategies.
  • Long-Term Objective: Maintain and grow clients' wealth in excess of inflation.  
  • Account Minimum: $100,000
  • Advisory Fees: 1.5%

FOCUS PORTFOLIO

  • Target Clients: Clients seeking capital appreciation with a higher tolerance for risk and volatility.  Our Focus Strategy is essentially our Dynamic Long/Short Strategy implemented in an IRA account which cannot apply for margin privelages.  Ideal for younger clients with a higher risk tolerance.
  • Long-Term Objective: Maintain and grow clients' wealth in excess of inflation.
  • Account Minimum: $100,000
  • Advisory Fees: 1.5%

*  For compliance reasons, we do not report the performance of our INCOME PORTFOLIO to the public because there is significant dispersion among the returns on our clients' accounts.  We can provide individual client returns to for those interested in investing in our INCOME PORTFOLIO.

THE LOGISTICS OF OUR ASSET MANAGEMENT SERVICES

In addition to seeking to provide superior risk-adjusted returns, we have taken several measures to ensure that our clients feel secure about our firm's approach to asset management.  The following are a few of the more important steps we've taken to accomplish this objective.

Transparancey: Our clients have access to their accounts 24/7.  We never commigle our clients' accounts.  We provide our clients with monthly reports detailing all trades and returns by sector and sub-sector.  We also provide account performance reports on a quarterly basis.  All expenses incurred by the account including adviser fees, brokerage commissions and other expenses are clearly identified in the account statement.

Fiduciary Responsibility: We are contractually obligated to always act in the best interest of our clients.  We invest our own money and the money of our family members in our strategies along with all of our clients.

Risk: Our clients may termminate our client agreement at any time without notice and it is not subject to any sort of holding period.  Furthermore, clients may be granted full access to their accounts so that they can liquidate any holding during market hours.

Fee-only advice: We eliminate the majority of conflicts of interest that have plagued the financial services industry by providing fee-only advisory services.  Our feeling is that if our clients are our sole source of revenue, then our loyalty will remain solely with them.  We are a completely independent asset management firm and do not receive any sort of hard or soft dollar compensation from other investment advisers, fund families or brokerage firms. For an in-depth explanation about the nature of fee-only advice, visit our Fee-only Advisory page.

Operational Effeciency: By limiting the number of strategies we implement and by obtaining discretionary trading authority over our clients' accounts, we have streamlined our operations in such as way as we can focus on asset management.  This allows us to keep our fees to a minimum and ultimately, we feel that it will lead to higher year-over-year returns.

 

If you would like to discuss our approach to asset management or learn more about how we deliver absolute returns for our clients, you can call us in our Dallas office at 214 | 954 4300 or at our Austin/Central Texas office at 512 | 692 7952.

 

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