Investment Process

For Clients

I offer my clients access to three managed portfolios with different investment objectives: Growth, Growth with Income, and Income with Moderate Growth.

These portfolios are managed by LPL Financial using a momentum strategy, which identifies relative strength and draws on real-time information to pinpoint which asset classes (across the spectrum of stocks and bonds) have the best momentum at any given time.

Then, the portfolio holdings are diversified among the top-performing groups. I regularly monitor each portfolio and make adjustments accordingly to take advantage of opportunities among rising asset classes and eliminating declining asset classes.

Part of a Risk-Management Strategy

This purely quantitative approach seeks to protect against losses, because I typically sell out of an asset class when it runs out of upward momentum and its value begins to fall, using a multi-factored sell discipline to monitor investment prices. As a result, my managed portfolios seek to minimize declines and may help mitigate investment risk over time.

Losses are inevitable in investing but, with this strategy, I strive to be wrong small with my portfolio's meaning that I may be able to limit losses by selling out of a declining asset class before a major price drop.

For Advisors

I offer access to three managed portfolios with different objectives Growth, Growth with Income, and Income with Moderate Growth that give your clients turnkey access to the momentum/relative strength investment concept.

How Relative Strength Works

The relative strength strategy uses real-time information and trend analysis to pinpoint which asset classes (across the spectrum of stocks and bonds) have the most upward momentum at any given time. I track the performance of 41 asset classes daily, identifying supply and demand using the proprietary technical research of Dorsey Wright, a leader in Point & Figure charting.

Based on this information, I maintain diversification of the portfolio holdings among the top-performing asset classes. Each portfolio is monitored regularly and adjusted accordingly to take advantage of opportunities in rising asset classes. Generally, relative strength tends to be longer term in nature, usually lasting 18-24 months.

Part of a Risk-Management Strategy

I believe it is important to stay abreast of changes in relative strength, not only for managing current positions in my portfolios, but also as a way to be alerted to fresh investment ideas that are moving toward outperformance.

Although losses are inevitable in investing, with this purely quantitative strategy I aim to mitigate risk over time by selling out of a declining asset class before it experiences a significant decline. As a result, these managed portfolios may be a suitable risk management component for your clients investment plan.

For more detailed information on the relative strength strategy, please feel free to contact me directly at (248) 485-8106.