June Newlsetter

June 8th, 2018 by Anchor Bay Capital's Investment Team


Summer is here!  If your household is like mine, I am sure that the calendar is filling up quickly with Summer activities to enjoy now that the kids are out of school!  As you plan to have fun with your children or grandchildren, don’t forget to consider planning for the future.  Below you will see a link to a former blog post about raising financially smart kids.  It is worth a read and it goes hand in hand with an important enhancement that we would like to introduce this month.  Read Here

Helping Emerging Investors Get Started

Recently we adopted a new service platform that makes the investment process simple for an emerging investor.  What is an emerging investor?  We typically think of an emerging investor as someone who is just starting out in the investment world.  It does not necessarily have to do with age, but typically we think of an emerging investor as someone who has not accumulated substantial wealth yet and has a longer time horizon to grow their money.  These are also individuals who are interested in learning how to put their money to work and take advantage of compounding returns.

A Different Investment Style

Anchor Bay Capital has a long history of providing prudent investment management.  At the core of our investment strategy is a desire to focus on preserving investor’s assets, while also meeting cash flow requirements and generating a reasonable return.  We select investments based on fundamentals and we are interested in growing revenues and earnings and doing it consistently, while avoiding the rollercoaster of ups and downs in the market.

We also take a tactical approach with our investment strategy.  This means that we adjust our target allocations of stocks, bonds and cash based on our perspective of the factors that affect the market and economy.  We believe that this style provides the best opportunity for our clients to capture returns in an up market and be defensive against losses in a down market.

While we believe our method of investing is a solid process for any investor in the stock market, our core approach is primarily focused on investors that have accumulated more money than the typical emerging investor.  This is because it takes larger sums of money to achieve diversification when you are investing in individual stocks.  Consider that as I am writing this article, Apple’s share price (AAPL) closed at $193.46.  This means that if I have $1,000 to invest, I could only buy about 5 shares of Apple.

For an emerging investor, it makes sense to take an approach that has a slightly different style.  With smaller amounts of money and longer time horizons, time in the market is key.  The focus needs to be on investing in a diversified portfolio and staying invested so that the portfolio can capture market returns over a long period of time.  This type of investing is a strategic approach where the investor’s allocation in the market is determined based on risk and time horizon and only modified if there is a change to the investor’s preferences.

Introducing Anchor Bay Capital’s Automated Investment Strategy

For an investor that is just starting out we feel that an investment strategy must provide 3 things:

  1. A portfolio that is diversified among many asset classes for wide exposure to various investments.
  2. Low cost access to the investments so that the money invested can be put to work without being eaten up by fees.
  3. A transparent, easy to understand process so that the experience of investing is a positive one.

Based on this criteria we are introducing an automated investment platform that brings Anchor Bay Capital’s service to the emerging investor.

With this platform an investor can open an account through a seamless digital process.  It is as easy as a few clicks to determine your investment goal and risk tolerance and our system generates a recommended portfolio allocation across stocks, bonds and cash.  Just a few more clicks and the account is opened and ready to fund.

Once money is invested, we utilize a system that maintains the allocation through an automated process.  This provides quality portfolio management with less time involved from our professional investment team.  The value of this automated process is that an emerging investor can get started with a lower cost than our full service portfolio management but still receive ongoing financial guidance from our professional staff.

Our Commitment to a High Quality of Service

We look forward to utilizing this platform with investors that up until now have not been able to access our high level of service and expertise.  Please contact us to learn more.  If you are an emerging investor or have children or grandchildren that would like to start investing, this is a great solution.  This is also a great solution for smaller accounts that you would like to put to work with a slightly different style from our current investment approach.

Rest assured, we are continuing to diligently manage our core portfolios.  In the coming few weeks we will be announcing a client education event and a presentation on our mid-year market outlook.  Please click on the links below to ready our Associate Portfolio Manager’s market commentary and be sure to check our blog for ongoing financial education.