Investment Bank/Securities Brokerage - Santa Monica, CA, US
Growth Strategies invests primarily in equity and equity related securities that are traded publicly in domestic markets. The majority of the portfolios are invested in the common stock of companies, that in the portfolio manager's judgement, exhibit accelerating fundamentals. This is frequently due to something new about the company; new products, services or management. Often these companies operate in industries that also show accelerating characteristics. We use a bottom-up stock picking style that selects individual securities to purchase in anticipation of higher valuations.Managed accounts generally expect to hold a relatively concentrated investment portfolio of up to 10-20 positions. Growth Strategies principal believes that its sell disciplines offer a better hedge against risk than diversifying into less compelling stocks.The fund only invests in an equity if it believes that the downside risk of any single investment can be defined so that possible losses are less material to the accounts' overall value. For each investment, the manager attempts to predetermine the amount we are willing to risk at the time of the investment and strictly adhere to this determination.These sell disciplines also serve to allocate account assets out of equities into cash in poor market environments. As a reminder of the oft repeated risk in the stock market, the average growth fund dropped over 50% during the period from early 2000 through 2002 and then did it again in 2008 through 2009. Unlike growth mutual funds, which generally stay fully invested at all times, individual account cash levels managed by Growth Strategies are raised materially in bad markets.
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