Hyper Local News Pages

Web Stats Provided By Google Analytics

Thursday, February 12, 2009

2/12/09 PRESS RELEASE: A New Way to Look at Equities- From Peter Lundstedt, CIO, Equity Portfolio Strategist, Greenwich Asset Management Group, LLC

A New Way to Look at Equities

Seven measurements

From: Peter Lundstedt, CIO, Equity Portfolio Strategist,

Greenwich Asset Management Group, LLC

I use a new way of looking at stocks to invest equity portfolio's and it's done inside a Separately Managed Institutional Account held with an independent custodian, such as Schwab Institutional, with real time client monitoring in what I call a Client Supervised Investment Account.

My goal is to provide a superior equity portfolio construction methodology. Greenwich Asset Management Group, LLC does not custody assets and works with limited trading authority only. Send for more information to: gamgllc@earthlink.net or visit www.gamgllc.com

About us:

Index

1. Seven measurements - A new way to look at stocks

2. What I can do for you

3. How Linear Regression might help your portfolio

4. More Information


1. Seven measurements - A new way to look at stocks

I use seven measurements when searching for stocks to add to a portfolio. Very few stocks have all seven measurements, at the same time. These measurements reflect a stocks' strength on a fundamental level first and then a technical level. These are companies which rank in the top 15% on all seven levels as measured by leading financial information providers and represent the financial health and overall demand by stock buyers. We then give each stock a score; (a higher score equals higher 'confidence' in the stocks held in the portfolio).

Our way of making money is to buy good stocks with a high score and, depending on the market, hold them for 3 to 5 years, and sell the ones that don't follow their long term trend line. Add 20 years of experience and you have a workable system which we think can benefit almost any portfolio. Call us to see more information if you think this philosophy would fit with your style of investing: USA (203) 622-1305.


2. What I can do for you

I can show you how each stock you hold really ranks; which stocks to keep and which stocks not to hold. I can show you how the top half of your portfolio has performed compared to the bottom half. I can show you how your top 10 stocks performed and then the top 15 and the top 20. I feel I can position Institutional equity portfolios in a better way by holding only the highest ranked issues in a broadly diversified portfolio while at the same time being client specific. So, if you need an energy portfolio, I can create an evenly weighted portfolio of 30 - 50 of the highest ranked energy stocks. If you have an asset allocation model, I can create an evenly weighted portfolio of the highest ranked stocks in each sector chosen. If you need to 'reconstruct' a health care portfolio, I can create an evenly weighted portfolio of 30 - 50 of the highest ranked health care stocks, and so on. Here is how I do it:

I use seven measurements when searching for stocks to add to or to 'reconstruct' a portfolio. These measurements reflect a stocks' strength on a fundamental level first and then a technical level. These are companies which rank in the top 15% on all seven levels as measured by leading financial information providers and represent the financial health and overall demand 'by stock buyers'. I then give each stock a score; (a higher score = higher confidence). Currently, a perfect score would be a 598. I found that the higher the score, the fewer the number of stocks were available. I like to limit the portfolio to stocks with a minimum score of 470 to 490 which I feel gives you a higher probability of success. You could imagine ranking all 500 stocks in the S&P 500 and creating an evenly weighted portfolio with just the top 50 or top 100 stocks with the highest rank.

For example, with a $100 million dollar separately managed account held at Schwab Institutional, I would most likely divide it into 30 - 50 evenly weighted segments and then fill each compartment with higher score, stock selections. I learned this style of portfolio management from the former manager of the now $140 billion NY State Common retirement fund, who traded actual client accounts thru me for five years using this technique. While at the State, he had 12 money managers under him. He saw how each one did over time, which systems worked and which to avoid. He settled upon a sector rotation model that averaged 25% per year. I've added the seven measurements above to the formula, among other important criteria, to create a uniquely diversified Institutional quality evenly weighted equity investment process. I operate under the theoretical assumption that, it doesn't matter what you own; what really matters is what other people are buying and how diversified you want to be.

If this concept fits with you, call or email for more information: gamgllc@earthlink.net or visit http://www.gamgllc.com/


3. Linear Regression

So, let's look at an example of what we are looking for in a

stock when building a portfolio.

Here is a one month December, 2008 chart of a popular stock.

It looks rather uneventful. Let's zoom out to one year and see

if it looks any different.

Here it looks like it's trending down according to it's one year

Linear Regression Line. Certainly doesn't look like something

you would want to have owned. Let's zoom out 10 years and

see if it looks any different.

Long term the stock looks better. The company is Nike, Inc. But

how do we manage our expectations and will it continue on its same

course? Let's assume that the company's last ten years of growth

and rate of change will continue for another 3 to 5 years. Let's zoom

out further and extend the Linear Regression Line indefinitely.

If the 'Fundamentals' stay the same, then, the probability

is that the demand for the stock will continue and one might

expect the stock price to grow along it's linear regression line

long term. Our goal is to find 30 to 50 stocks like this one.

4. More Information:


If this email does not display properly, please click here.

Greenwich Asset Management Group

Greenwich Asset Management Group

Getting Results. Differently

What if one could 'measure' demand in a way that resulted in a higher probability of a positive future outcome? If information that was 'already public' was compiled in such a way that reflects which stocks will potentially attract more buyers than sellers. This is what I do. I believe the most successful investment firms have been those that have been separated physically and psychologically from brokerages, banks or insurance companies. That is, the best performance and also the most dynamic business strategies have generally come from independent investment management firms.

Our Investment Process

I use seven measurements, to start, when searching for stocks to add to a portfolio. Very few stocks have all seven measurements at the same time. These measurements reflect a stocks' strength on a fundamental level first and then a technical level. These are companies which rank in the top 15% on all seven levels as measured by leading financial information providers and represent the financial health and overall demand by stock buyers. I then give each stock a score; (a higher score equals higher confidence in your stock portfolio).

My way of investing private capital is to buy good stocks with a high score and hold them for 3 to 5 years, and sell the ones that don't follow their long term trend line. Add 20 years of experience and you have a workable system which I think can benefit almost any portfolio.

Why Invest With Us ?

I offer independent, unbiased, transparent, and investment banking-free advice.

I am paid a management fee, not commissions. Our goal is in line with client goals, which is a higher account value, not higher commissions or more trades.

I invest discretionary capital for clients in the equity markets through Separately Managed Accounts typically held at Schwab Institutional or Fidelity, which have very low commissions and fees.

What I Look For

My stock screening process is based in part on a proprietary system as well as statistical information produced by leading financial information provider's stock screening process. I look for:

- Fundamental Data Rating
- Earnings Per Share (EPS) Rating
- Sales + Profit Margins + ROE Rating
- Return on Equity (ROE)
- Moving Averages and more !

What I Do

I Advise and Manage "Growth Stock" Separately Managed Investment Accounts:

For client accounts held at Schwab Institutional, I buy stocks of companies that have the fundamental and technical characteristics I "screen" for growth accounts and that fit with each client's risk tolerance, financial situation and investment goals.

Fundamentally, I screen for companies that have a high score as reported by leading financial information providers which include fundamental ranking, earnings per share ranking and SMR (sales, profit, margins, and return on equity) ranking, as well as, return on equity, greater than 100 employees, and positive earnings expectations, and more.

Technically, I screen for stocks whose prices are usually above several moving averages.

logo

I was a Top Ten Performer in the Second Quarter 2008 Top Guns Ranking. Our Global Equity Universe Fund has exhibited superior performance compared to my peers in the PSN Investment Manager Database.

PLEASE REMEMBER:
Past results are not indicative of future returns. There is risk of loss as well as opportunity for gain when investing in separately managed stock accounts.

PHONE:

(203) 622-1305

FAX:

(203) 622-1306

WEB:

http://www.gamgllc.com

E-MAIL:

gamgllc@earthlink.net

MAILING ADDRESS:

Greenwich Asset Management Group, LLC
2 Sound View Dr. Suite 100, Greenwich, CT 06830

Unsubscribe from this list.

Peter Lundstedt is the sole owner of Greenwich Asset Management Group, LLC.
Copyright (C) 2008. Greenwich Asset Management Group, LLC. All rights reserved.

No comments:

The Raw Greenwich Blog And RSS Feed - Bloggers Who Are From, Work In Or Used To Live In Greenwich