Investment Process

Consistent with the considerations described above we focus on the control of risk in managed portfolios. The primary tool to control risk has been our proprietary process called the Trend Tool® an investment management process that lowers risk by moving from equity or risk based assets to low risk assets such as Money Market or fixed Income funds when conditions in the Risk Based sectors are the least attractive. (See Trend Tool®)

Due to historic volatility experienced since mid-2007 we have adopted the use of additional tools to control our exposure to various risks, both known and unknown. We use a variety of investment vehicles and also attempt to limit downside exposure through the use of inverse products and strategies such as stop/loss orders. Further, after extensive research, we have begun to use investments that have the internal ability to potentially limit their exposure to the risks inherent in their areas of investment focus.

The combination of the Trend Tool® for the long term outlooks and market and the hedging techniques recently integrated in both our Equity and Fixed Income Portfolios, have helped us to contruct portfolios with less volatility than the major indices.

We moved out of the Equity Assets in the summer of 2007 prior to the major meltdown, and did not return to Equities until the summer of 2009. Therefore our advisory clients potentially had less exposure to the general market decline. Also in 2009 because of our risk aversion our clients did not fully participate in the market rebound. Our process is not for the investor seeking maximum capital gains in all markets but for those who have the goal to earn reasonable returns without putting their portfolios at great risk.

We are proud of the results we have attained for our clients.

Information in this illustration has been obtained from sources believed to be reliable. The information presented are provided for informational purposes only and not to be construed as a recommendation or solicitation. Investors must make their own determination as to the appropriateness of an investment or strategy based on their specific investment objectives, financial status and risk tolerance. Past performance is not an indication of future results. Investments involve risk and the loss of principle.