This document describes an equity income portfolio strategy managed by Deschaine & Company. The strategy aims to provide growing income and consistent total returns through high yield equity portfolios. It focuses on investing in quality companies that pay a consistent and growing dividend, with the goal of doubling clients' dividend income every five years through high dividend yields, growth, and reinvestment. The strategy also aims to provide principal protection in down markets.
The document provides information about the Orcutt Fasano Wealth Management Group team at UBS Private Wealth Management. It introduces the team members and their roles. The team is dedicated to serving high-net-worth individuals and families, and provides financial planning, portfolio management, estate planning, and other wealth management services. The document outlines the team's commitment to understanding clients' needs, maintaining confidentiality, providing transparency, and offering a personalized client experience.
The document provides information about the Orcutt Fasano Wealth Management Group team at UBS Private Wealth Management. It introduces the team members and their roles, including two Managing Directors with over 70 years of combined experience. The team focuses on high-net-worth individuals and families, and aims to understand clients' unique situations and provide comprehensive financial planning and portfolio management services. The document outlines the team's commitment to clients and their process for providing customized advice and reporting.
Davies Capital Management is raising $1 million through a private placement offering to form an investment syndicate for stock option trading. The managing member, Scott Davies, has successfully traded stock options for years. The company intends to use the funds for option trades, research emerging companies, and provide education on options trading. Projections estimate the company could be profitable within a year and valued over $9 million in 3 years.
This document provides an agenda for the 3rd Annual Family Office Congress on managing risk, succession, and family legacy, held on December 1-2, 2010 in Melbourne, Australia. The agenda includes sessions on: defining risks facing family offices; nurturing entrepreneurship in the next generation; global investment strategies; managing business risk and succession; choosing external and internal advisers; and philanthropy. There will be presentations, panel discussions, and networking events with speakers from international family offices, investment firms, and advisory organizations.
Just Plans Etc is a fee-only investment advisory firm founded in 1983 that provides financial planning and investment management services to over 150 clients. The firm takes a passive investment approach using low-cost mutual funds and ETFs. They work with clients through an initial discovery meeting, investment plan meeting, and mutual commitment meeting to develop a long-term investment strategy tailored to the client's goals and risk tolerance.
The document is an agenda for a co-investment forum to be held in Melbourne on April 8, 2011. The agenda includes sessions on the definition of co-investment, case studies of recent global co-investment deals, sources of co-investment deal flow, lessons learned from co-investments, and opportunities for social impact co-investments. There will also be a panel discussion and opportunities for attendees to submit potential co-investment deals. The event is organized by Dealers' Group and aimed at private investors and family offices.
Advanced Fund Administration (AFA) is a privately owned hedge fund and private equity fund administration firm established in 2008. AFA provides comprehensive fund administration solutions including accounting, investor services, technology platforms, and advisory services to funds. The executive management team, led by founder Peter Young, has extensive experience in the alternative investment industry. AFA utilizes integrated technology platforms like SunGard VPM and Paxus to provide customized reporting, portfolio management, and investor allocation services to its clients.
The document provides information about the Orcutt Fasano Wealth Management Group team at UBS Private Wealth Management. It introduces the team members and their roles. The team is dedicated to serving high-net-worth individuals and families, and provides financial planning, portfolio management, estate planning, and other wealth management services. The document outlines the team's commitment to understanding clients' needs, maintaining confidentiality, providing transparency, and offering a personalized client experience.
The document provides information about the Orcutt Fasano Wealth Management Group team at UBS Private Wealth Management. It introduces the team members and their roles, including two Managing Directors with over 70 years of combined experience. The team focuses on high-net-worth individuals and families, and aims to understand clients' unique situations and provide comprehensive financial planning and portfolio management services. The document outlines the team's commitment to clients and their process for providing customized advice and reporting.
Davies Capital Management is raising $1 million through a private placement offering to form an investment syndicate for stock option trading. The managing member, Scott Davies, has successfully traded stock options for years. The company intends to use the funds for option trades, research emerging companies, and provide education on options trading. Projections estimate the company could be profitable within a year and valued over $9 million in 3 years.
This document provides an agenda for the 3rd Annual Family Office Congress on managing risk, succession, and family legacy, held on December 1-2, 2010 in Melbourne, Australia. The agenda includes sessions on: defining risks facing family offices; nurturing entrepreneurship in the next generation; global investment strategies; managing business risk and succession; choosing external and internal advisers; and philanthropy. There will be presentations, panel discussions, and networking events with speakers from international family offices, investment firms, and advisory organizations.
Just Plans Etc is a fee-only investment advisory firm founded in 1983 that provides financial planning and investment management services to over 150 clients. The firm takes a passive investment approach using low-cost mutual funds and ETFs. They work with clients through an initial discovery meeting, investment plan meeting, and mutual commitment meeting to develop a long-term investment strategy tailored to the client's goals and risk tolerance.
The document is an agenda for a co-investment forum to be held in Melbourne on April 8, 2011. The agenda includes sessions on the definition of co-investment, case studies of recent global co-investment deals, sources of co-investment deal flow, lessons learned from co-investments, and opportunities for social impact co-investments. There will also be a panel discussion and opportunities for attendees to submit potential co-investment deals. The event is organized by Dealers' Group and aimed at private investors and family offices.
Advanced Fund Administration (AFA) is a privately owned hedge fund and private equity fund administration firm established in 2008. AFA provides comprehensive fund administration solutions including accounting, investor services, technology platforms, and advisory services to funds. The executive management team, led by founder Peter Young, has extensive experience in the alternative investment industry. AFA utilizes integrated technology platforms like SunGard VPM and Paxus to provide customized reporting, portfolio management, and investor allocation services to its clients.
This document provides a summary of the Deschaine & Company investment portfolio for 2011. It thanks clients for a record year in 2011. It then discusses how the S&P 500 finished 2011 very close to where it started, highlighting the importance of dividends in providing a positive total return for the year. It argues that a focus on dividends is important for long-term positive equity returns.
This document provides an overview of the stock market rally in 2009 and Deschaine & Company's perspective on investing.
1) After bottoming out in March 2009, the stock market rallied significantly through the end of the year, with the Dow up 57% and the S&P 500 and Nasdaq up 63% and 75% respectively.
2) Deschaine & Company acknowledges stock market rallies but notes an important distinction between temporary "dead cat bounces" and sustained rallies driven by earnings growth and expanding price-to-earnings multiples.
3) The firm takes a contrarian approach to investing, focusing on generating income rather than short-term capital gains, in contrast to
Short Version Making Money In A Lt Bear Marketmjdeschaine
1) The document discusses strategies for earning returns in a long-term bear market, using the 1966-1982 period as an example. It shows that focusing only on stocks that pay dividends can significantly boost returns compared to the S&P 500 as a whole.
2) Enhancing the strategy by selecting high-yield, dividend-growing stocks and timing reinvestment can potentially add further gains, with annual returns estimated at 16.1% for the 1966-1982 period.
3) Applying a similar strategy since 2000, the document claims annual returns of 9.5% compared to -2.9% for the S&P 500 over the same time.
The document discusses the benefits of investing in dividend stocks, especially those that regularly increase their dividends. It presents three scenarios showing how a $1 million investment in a stock with a starting 5% dividend yield and 8% annual dividend growth would perform over 25 years under different stock price scenarios: flat prices, 5% annual price increases, and 5% annual price decreases. It finds that declining stock prices allow the investor to accumulate the most shares, resulting in the highest total returns of over 25% annual returns. This highlights how declining prices present an opportunity to accumulate stocks more cheaply when combined with growing dividends.
This document discusses the current economic challenges and provides suggestions for protecting assets during difficult financial times. It outlines six major obstacles slowing economic recovery, including accumulated debt, wealth destruction, declining incomes, the slow pace of government rescues, sinking confidence, and how to finance government programs. Specific concerns mentioned include declining asset prices, taxes, inflation, and unknown factors. The document recommends building cash reserves, selling bonds, considering inverse ETFs and gold funds, avoiding high-risk investments, and being wary of fraud. It offers to provide ongoing information and answers questions to help investors navigate the challenging environment.
The document provides an update on the Equity Income Portfolio strategy for year-end 2008. It discusses how 2008 was an extraordinarily difficult year for financial markets, with most major indexes experiencing declines of 30-40%. While the portfolio fared better than indexes with a decline of 18%, it was still the portfolio's first negative year since inception in 2000. The outlook provided expects a long and difficult economic downturn, with stock market valuations not bottoming until 2015-2020 when price-to-earnings ratios reach single digits. The update reviews the portfolio holdings and dividend payments received in 2008.
This document summarizes the key tenets of Modern Portfolio Theory (MPT) and its influence on investing over the past 50 years. It discusses how MPT, developed in the 1950s, established that diversifying across different asset classes in indexed funds could achieve more consistent returns than investing in a single asset class. It also describes how MPT is based on assumptions that markets are efficient and that investors have long time horizons. While MPT became the standard for large institutional investors, the document argues that pushing it to individual investors instilled a false sense of certainty about long-term stock returns and risk.
This document provides an overview and analysis of economic events in 2008. It discusses the large declines in stock markets and other asset classes that year due to the unwinding of the debt bubble. It criticizes the new presidential administration's plans to stimulate the economy through large government spending programs, arguing this approach did not work during the Great Depression and will likely not work now. The document proposes eliminating all corporate and business income taxes as a better way to stimulate the economy with little cost to taxpayers. It claims this would lower business costs, generate cash flows, attract foreign capital, and make the U.S. the most competitive economy. However, it acknowledges this proposal will likely not be adopted.
This document is a newsletter from Deschaine & Company summarizing investment events from 2010. It identifies the top two stories of the year as the extension of the Bush tax cuts and the stock market reaching a two-year high in December. It then discusses other notable events throughout the year, including the BP oil spill, European debt crisis, Chilean miners rescue, and gold prices. The document concludes that the tax cuts and stock market high were linked, and that finding companies that consistently grow dividends over time is an effective investment strategy.
This document provides an overview of Braver Wealth Management, an SEC registered investment advisory firm founded in 1987. It manages $550 million in assets using quantitative investment strategies focused on downside protection, risk control, and wealth preservation. Key aspects of its investment philosophy include acting to harvest gains while avoiding major declines, and utilizing cash as a true investment during periods of market weakness.
Lookout presentation for companies april 2013Merrette Moore
Lookout Capital provides growth capital and strategic advisory to small and growing companies. They operate with two guiding principles - helping entrepreneurs grow their businesses and being patient, people-focused investors seeking long-term returns. They typically invest between $500k-$20M in companies generating $2M-$10M in revenue, focusing on North Carolina companies. They are actively involved through board representation and management consulting, with the goal of helping portfolio companies achieve their strategic plans and increase shareholder value over the long term.
Beacon Trusteeship is a trustee company formed by ex-bankers and professionals with experience in trusteeship. It provides trusteeship and fiduciary services to banks, NBFCs, government organizations, AIFs, and HNIs. The company aims to perform its fiduciary role responsibly and provide high quality services. It has a team of experienced professionals from banking and legal backgrounds. The company offers various trusteeship services including for bonds, securitization, AIFs, and real estate/infrastructure funds. It has relationships with major banks, NBFCs, real estate and infrastructure companies.
Backlog Capital provides working capital loans to growing tech and healthcare companies. It was founded by JW Ray who has experience building and selling a successful SaaS company. Backlog Capital focuses on lending to companies with $2-30 million in annual revenue, booking growth over 5%, and forecasted booking growth over 10% to help fuel their growth. In addition to capital, Backlog Capital also provides strategic advisory services to help companies with areas like sales, marketing, and expansion.
Sustainable and responsible investing (SRI) integrates environmental, social, and governance factors into investment decisions to improve long-term returns while also considering an investment's societal impact. SRI recognizes that non-financial issues can influence corporate performance and risk. Boardwalk Capital helps clients customize SRI portfolios through individual stocks, funds, and separate accounts to meet financial needs and personal values. SRI indexes have provided competitive returns with lower volatility than the broader market.
Sustainable and responsible investing (SRI) integrates environmental, social, and governance factors into investment decisions to improve long-term returns while also considering an investment's societal impact. SRI recognizes that non-financial issues can influence corporate performance and risk. Boardwalk Capital helps clients customize SRI portfolios through individual stocks, funds, and separate accounts to meet financial needs and personal values. SRI indexes have provided competitive returns with lower volatility than the broader market.
The document provides information about the Chudom Hayes Wealth Management Group of Morgan Stanley Smith Barney. It introduces Kyle Chudom and Eric Hayes, the founding member and vice president. It describes the group's mission to help families manage their finances to focus on what brings them joy. It outlines their approach of developing financial plans, diversifying portfolios, maintaining objectivity, and minimizing costs and taxes. The document also highlights the benefits of working with an experienced team and the firm's resources to help clients achieve their goals.
CONTI is a vertically-integrated real estate investment company specializing in multifamily properties in Texas. It currently owns 15 multifamily communities with over 3,300 units across six cities in Texas. CONTI's mission is to be the leading owner and operator of multifamily housing in Texas while benefiting residents, investors, employees, and partners. It focuses on acquiring, rehabilitating, and redeveloping multifamily properties using a hands-on approach and value-added strategy.
This document summarizes a joint venture between Computech Corporation and CapitalFusion Partners called FinCap Solutions. It provides an overview of FinCap's offerings in structured finance, products, growth story, and experienced management team. The management team includes executives from both Computech and CapitalFusion with experience in financial services, technology, consulting, and business development.
Polymetis LLC is an independent boutique firm that provides due diligence, research, and advisory services focusing on alternative investments. It offers comprehensive due diligence reports and ongoing monitoring of managers. The firm's principals have over 40 years of combined experience evaluating hedge funds and building alternative investment programs. Polymetis believes that a successful alternative investment program requires a meaningful long-term commitment of expertise and resources.
Just Plans Etc is a fee-only wealth management firm founded in 1983 that provides financial planning and investment advisory services to over 100 clients. The firm specializes in tax-efficient investing and helping investors realize value from various equity holdings. Founder Jim Ellman and Barry Mendelson together have over 50 years of experience in growing, managing, and protecting clients' wealth. The firm provides comprehensive wealth management services including investment management, financial planning, retirement planning, and estate planning using primarily low-cost mutual funds and ETFs.
Just Plans Etc is a fee-only wealth management firm founded in 1983 that provides financial planning and investment advisory services to over 100 clients. The firm specializes in tax-efficient investing and helping investors realize value from retirement plans and stock positions. Jim Ellman and Barry Mendelson have over 50 years of combined experience in growing, managing, and protecting clients' wealth. The firm utilizes Charles Schwab for custody of assets and provides access to investments 24/7.
Just Plans Etc is a fee-only wealth management firm founded in 1983 that provides financial planning and investment advisory services to over 100 clients. The firm specializes in tax-efficient investing and helping investors realize value from retirement plans and stock positions. Jim Ellman and Barry Mendelson have over 50 years of combined experience in growing, managing, and protecting clients' wealth. The firm utilizes Charles Schwab for custody of assets and provides access to investments 24/7.
This document provides a summary of the Deschaine & Company investment portfolio for 2011. It thanks clients for a record year in 2011. It then discusses how the S&P 500 finished 2011 very close to where it started, highlighting the importance of dividends in providing a positive total return for the year. It argues that a focus on dividends is important for long-term positive equity returns.
This document provides an overview of the stock market rally in 2009 and Deschaine & Company's perspective on investing.
1) After bottoming out in March 2009, the stock market rallied significantly through the end of the year, with the Dow up 57% and the S&P 500 and Nasdaq up 63% and 75% respectively.
2) Deschaine & Company acknowledges stock market rallies but notes an important distinction between temporary "dead cat bounces" and sustained rallies driven by earnings growth and expanding price-to-earnings multiples.
3) The firm takes a contrarian approach to investing, focusing on generating income rather than short-term capital gains, in contrast to
Short Version Making Money In A Lt Bear Marketmjdeschaine
1) The document discusses strategies for earning returns in a long-term bear market, using the 1966-1982 period as an example. It shows that focusing only on stocks that pay dividends can significantly boost returns compared to the S&P 500 as a whole.
2) Enhancing the strategy by selecting high-yield, dividend-growing stocks and timing reinvestment can potentially add further gains, with annual returns estimated at 16.1% for the 1966-1982 period.
3) Applying a similar strategy since 2000, the document claims annual returns of 9.5% compared to -2.9% for the S&P 500 over the same time.
The document discusses the benefits of investing in dividend stocks, especially those that regularly increase their dividends. It presents three scenarios showing how a $1 million investment in a stock with a starting 5% dividend yield and 8% annual dividend growth would perform over 25 years under different stock price scenarios: flat prices, 5% annual price increases, and 5% annual price decreases. It finds that declining stock prices allow the investor to accumulate the most shares, resulting in the highest total returns of over 25% annual returns. This highlights how declining prices present an opportunity to accumulate stocks more cheaply when combined with growing dividends.
This document discusses the current economic challenges and provides suggestions for protecting assets during difficult financial times. It outlines six major obstacles slowing economic recovery, including accumulated debt, wealth destruction, declining incomes, the slow pace of government rescues, sinking confidence, and how to finance government programs. Specific concerns mentioned include declining asset prices, taxes, inflation, and unknown factors. The document recommends building cash reserves, selling bonds, considering inverse ETFs and gold funds, avoiding high-risk investments, and being wary of fraud. It offers to provide ongoing information and answers questions to help investors navigate the challenging environment.
The document provides an update on the Equity Income Portfolio strategy for year-end 2008. It discusses how 2008 was an extraordinarily difficult year for financial markets, with most major indexes experiencing declines of 30-40%. While the portfolio fared better than indexes with a decline of 18%, it was still the portfolio's first negative year since inception in 2000. The outlook provided expects a long and difficult economic downturn, with stock market valuations not bottoming until 2015-2020 when price-to-earnings ratios reach single digits. The update reviews the portfolio holdings and dividend payments received in 2008.
This document summarizes the key tenets of Modern Portfolio Theory (MPT) and its influence on investing over the past 50 years. It discusses how MPT, developed in the 1950s, established that diversifying across different asset classes in indexed funds could achieve more consistent returns than investing in a single asset class. It also describes how MPT is based on assumptions that markets are efficient and that investors have long time horizons. While MPT became the standard for large institutional investors, the document argues that pushing it to individual investors instilled a false sense of certainty about long-term stock returns and risk.
This document provides an overview and analysis of economic events in 2008. It discusses the large declines in stock markets and other asset classes that year due to the unwinding of the debt bubble. It criticizes the new presidential administration's plans to stimulate the economy through large government spending programs, arguing this approach did not work during the Great Depression and will likely not work now. The document proposes eliminating all corporate and business income taxes as a better way to stimulate the economy with little cost to taxpayers. It claims this would lower business costs, generate cash flows, attract foreign capital, and make the U.S. the most competitive economy. However, it acknowledges this proposal will likely not be adopted.
This document is a newsletter from Deschaine & Company summarizing investment events from 2010. It identifies the top two stories of the year as the extension of the Bush tax cuts and the stock market reaching a two-year high in December. It then discusses other notable events throughout the year, including the BP oil spill, European debt crisis, Chilean miners rescue, and gold prices. The document concludes that the tax cuts and stock market high were linked, and that finding companies that consistently grow dividends over time is an effective investment strategy.
This document provides an overview of Braver Wealth Management, an SEC registered investment advisory firm founded in 1987. It manages $550 million in assets using quantitative investment strategies focused on downside protection, risk control, and wealth preservation. Key aspects of its investment philosophy include acting to harvest gains while avoiding major declines, and utilizing cash as a true investment during periods of market weakness.
Lookout presentation for companies april 2013Merrette Moore
Lookout Capital provides growth capital and strategic advisory to small and growing companies. They operate with two guiding principles - helping entrepreneurs grow their businesses and being patient, people-focused investors seeking long-term returns. They typically invest between $500k-$20M in companies generating $2M-$10M in revenue, focusing on North Carolina companies. They are actively involved through board representation and management consulting, with the goal of helping portfolio companies achieve their strategic plans and increase shareholder value over the long term.
Beacon Trusteeship is a trustee company formed by ex-bankers and professionals with experience in trusteeship. It provides trusteeship and fiduciary services to banks, NBFCs, government organizations, AIFs, and HNIs. The company aims to perform its fiduciary role responsibly and provide high quality services. It has a team of experienced professionals from banking and legal backgrounds. The company offers various trusteeship services including for bonds, securitization, AIFs, and real estate/infrastructure funds. It has relationships with major banks, NBFCs, real estate and infrastructure companies.
Backlog Capital provides working capital loans to growing tech and healthcare companies. It was founded by JW Ray who has experience building and selling a successful SaaS company. Backlog Capital focuses on lending to companies with $2-30 million in annual revenue, booking growth over 5%, and forecasted booking growth over 10% to help fuel their growth. In addition to capital, Backlog Capital also provides strategic advisory services to help companies with areas like sales, marketing, and expansion.
Sustainable and responsible investing (SRI) integrates environmental, social, and governance factors into investment decisions to improve long-term returns while also considering an investment's societal impact. SRI recognizes that non-financial issues can influence corporate performance and risk. Boardwalk Capital helps clients customize SRI portfolios through individual stocks, funds, and separate accounts to meet financial needs and personal values. SRI indexes have provided competitive returns with lower volatility than the broader market.
Sustainable and responsible investing (SRI) integrates environmental, social, and governance factors into investment decisions to improve long-term returns while also considering an investment's societal impact. SRI recognizes that non-financial issues can influence corporate performance and risk. Boardwalk Capital helps clients customize SRI portfolios through individual stocks, funds, and separate accounts to meet financial needs and personal values. SRI indexes have provided competitive returns with lower volatility than the broader market.
The document provides information about the Chudom Hayes Wealth Management Group of Morgan Stanley Smith Barney. It introduces Kyle Chudom and Eric Hayes, the founding member and vice president. It describes the group's mission to help families manage their finances to focus on what brings them joy. It outlines their approach of developing financial plans, diversifying portfolios, maintaining objectivity, and minimizing costs and taxes. The document also highlights the benefits of working with an experienced team and the firm's resources to help clients achieve their goals.
CONTI is a vertically-integrated real estate investment company specializing in multifamily properties in Texas. It currently owns 15 multifamily communities with over 3,300 units across six cities in Texas. CONTI's mission is to be the leading owner and operator of multifamily housing in Texas while benefiting residents, investors, employees, and partners. It focuses on acquiring, rehabilitating, and redeveloping multifamily properties using a hands-on approach and value-added strategy.
This document summarizes a joint venture between Computech Corporation and CapitalFusion Partners called FinCap Solutions. It provides an overview of FinCap's offerings in structured finance, products, growth story, and experienced management team. The management team includes executives from both Computech and CapitalFusion with experience in financial services, technology, consulting, and business development.
Polymetis LLC is an independent boutique firm that provides due diligence, research, and advisory services focusing on alternative investments. It offers comprehensive due diligence reports and ongoing monitoring of managers. The firm's principals have over 40 years of combined experience evaluating hedge funds and building alternative investment programs. Polymetis believes that a successful alternative investment program requires a meaningful long-term commitment of expertise and resources.
Just Plans Etc is a fee-only wealth management firm founded in 1983 that provides financial planning and investment advisory services to over 100 clients. The firm specializes in tax-efficient investing and helping investors realize value from various equity holdings. Founder Jim Ellman and Barry Mendelson together have over 50 years of experience in growing, managing, and protecting clients' wealth. The firm provides comprehensive wealth management services including investment management, financial planning, retirement planning, and estate planning using primarily low-cost mutual funds and ETFs.
Just Plans Etc is a fee-only wealth management firm founded in 1983 that provides financial planning and investment advisory services to over 100 clients. The firm specializes in tax-efficient investing and helping investors realize value from retirement plans and stock positions. Jim Ellman and Barry Mendelson have over 50 years of combined experience in growing, managing, and protecting clients' wealth. The firm utilizes Charles Schwab for custody of assets and provides access to investments 24/7.
Just Plans Etc is a fee-only wealth management firm founded in 1983 that provides financial planning and investment advisory services to over 100 clients. The firm specializes in tax-efficient investing and helping investors realize value from retirement plans and stock positions. Jim Ellman and Barry Mendelson have over 50 years of combined experience in growing, managing, and protecting clients' wealth. The firm utilizes Charles Schwab for custody of assets and provides access to investments 24/7.
Steven Cohen has over 20 years of experience as a CFO and senior financial executive for software and technology companies. He has a track record of successfully positioning companies for growth, turnaround, and IPO. Currently he is the acting CFO for International Decision Systems, a global software company. He has extensive experience in areas such as financial operations, SEC reporting, budgeting, debt management, and M&A transactions totaling over $250 million. Cohen has an MBA from the University of St. Thomas and a BA from Macalester College.
The Lee/Wardrop Group is a financial advisory practice of UBS Financial Services Inc. located in Barrington, Illinois. The mission of the group is to help clients pursue their dreams through strategic planning and financial advice. The group provides services such as retirement planning, asset management, and estate planning to their clients. Key members of the group include Paul Lee, Scott Wardrop, Ryan Lindgren, Jacob Niggemann, and Trena Coffey.
The professionals here have expanded their business to both national and international markets. Thus, Go for Commercial Real Estate Agent Chicago, IL and solve your issues with the help of the experienced ones.
Zimtu Capital Corp. focuses on investing in early stage resource companies and mineral properties. It provides seed capital, management support, and business guidance to its investee companies. Zimtu also helps connect exploration companies with mineral properties and was involved in launching companies like Commerce Resources Corp. and Western Potash Corp. The company currently holds investments in public resource firms and cash for future opportunities. Zimtu is led by an experienced management team with expertise in financing and developing resource companies.
Regency Capital Partners Marketing Jan 09Mark Hill
Regency Capital Partners provides strategic and financial advisory services including mergers and acquisitions, capital raising, and management consulting. The firm was founded in 2001 and leverages the expertise of its principals who have extensive experience with investment banks, law firms, and large corporations. Regency advises growing companies and assists with transactions, strategic planning, and new business formation and sales.
Financial Consolidator Short Uk Brochure (2003 9) Sept 09BrendanBinchy
The document discusses a financial planning solution called "The Financial Consolidator" that comprehensively addresses all aspects of a person's finances, including their business interests, investment portfolios, pensions, loans, and other financial obligations. It aims to help clients gain clarity and answers to questions about the current value and performance of their assets, debt management, retirement planning, and other challenges keeping them awake at night. The service develops a consolidated financial plan by gathering data from clients' advisors and producing a clear analysis of their full financial situation and customized plan for the future.
Cayman Islands Director Services - Fund GovernanceBell Rock Group
Bell Rock is a leading provider of Cayman Islands Director Services and corporate services. We provide professional director services to investment entities in Cayman, such as hedge funds, private equity funds, investment management companies and other investment entities.
Similar to Current Master Material Sept 30, 2009 (20)
3. Deschaine & Company, L.L.C.
CONTENTS
SECTION I: Firm Background
SECTION II: Our All-Cap Equity Income Strategy
“The Case for Dividend Investing”
SECTION III: Our Security Selection Process
An Example: Altria
SECTION IV: A Bear Market Case for Dividend Investing
SECTION V: Appendix, Current EIP Holdings
Deschaine & Company EQUITY INCOME Portfolio Strategy
4. Deschaine & Company, L.L.C.
Our Mission: ABOUT Deschaine & Company, L.L.C.
“DOUBLE OUR CLIENTS’
DIVIDEND INCOME
EVERY 5 YEARS” Founded in 1999, 100% Independent & Privately Owned
A Privately Owned SEC Registered Advisor
► $63 million in 3 investment professionals have more than 50-years of investment management experience
assets under investment Over 10-years of experience managing high yield and dividend growth portfolios
management for 130
clients.
SERVICE ORIENTED
Client portfolios are managed by a team of senior investment professionals
Clients have direct access to their Portfolio Manager
Clients include, foundations, endowments, pension funds and individuals
Client communications personalized to meet each client’s needs
Deschaine & Company EQUITY INCOME Portfolio Strategy Firm Background
5. Deschaine & Company, L.L.C.
ABOUT OUR TEAM OF PROFESSIONALS
Professional Highlights:
At Deschaine & Company, all client portfolios are managed by Matthew T. Powers
► Combined, our team of portfolio our team of investment professionals to provide consent super-
managers have more than 50 years Vice President & Portfolio Manager
vision and continuity of management in the event of any dis-
Matt joined Deschaine & Company in July of 2009, as a Vice
of investment & portfolio manage- ruption of personnel. President and Portfolio Manager. He has over 10 years of
ment experience. investment management experience starting at Edward
Mark J. Deschaine Jones where he worked of over three years before moving
► In addition, Mark Deschaine has to Smith Barney and then joined Lucco Financial partners
President & Chief Investment Officer where he served as a portfolio manager.
served more than 28 years in the Mark has over 30 years of experience in the asset
role of Chief Investment officer. management business, including over 24 as Chief
Investment Officer. From 1984 to 1997, Mark was Chief Jason M. Loyd
Executive Officer, President and Chief Investment Officer Vice President & Portfolio Manager
►The team has extensive taxable, of Investment Counselors Incorporated; a St. Louis based Jason joined Deschaine & Company in July of 2009, as a
tax-exempt, endowment and pen- investment advisor. Vice President and Portfolio Manager. He has over 10 years
At ICI, Mark was responsible for all aspects of the of investment management experience starting at Edward
sion, profit sharing and special fund Jones where he worked of three years before moving to
firm’s investment and corporate operations and was the
asset management experience. primary force in developing and implementing the firm’s Bank of Edwardsville prior to joining Lucco Financial Part-
investment philosophy and strategies. Under Mark’s ners where he served as a portfolio manager.
►The principles of Deschaine & direction, ICI grew from $20 million in assets and 20 clients
Company have extensive industry to over $650 million in assets and 120 clients before he sold Marnie E. Deschaine
his interest in January, 1997.
experience operating and growing From June 1981 to February 1984, Mark was an
Chief Operations Officer
Marnie is the majority owner of the firm and is responsible
an investment management busi- Assistant Vice President of Trust Investments for Boatmen’s
for supervising and directing the firm’s business and client
ness. They are not learning “on the Bank (now Bank of America) of Belleville, IL. From April 1979
administration. She has over 20 years of investment invest-
to Sept 1981 he was Trust Investment Manager for
job” as the firm grows. Lumberman’s Bank in Muskegon, Michigan.
ment industry experience including seven years
coordinating the marketing and client service activities at
Mark has a Masters of Business Administration from
Investment Counselors Incorporated in St. Louis where she
Southern Illinois University in Edwardsville, Illinois and a
served as Vice President of Marketing from 1992 to 1997.
Bachelors of Business Administration from Western
Prior to that Marnie served as the firm’s business manager
Michigan University in Kalamazoo, Michigan. Kalamazoo is
and firm’s client service and back office operations manager.
Mark’s hometown.
Deschaine & Company EQUITY INCOME Portfolio Strategy Firm Background
6. Deschaine & Company, L.L.C.
OUR INVESTMENT PHILOSOPHY
We are long-term investors in quality companies that pay a consistent and growing dividend. We seek to buy
them when they’re at trading unusually attractive yields. Successful investing requires the accumulation of quality assets at
bargain prices and the patience to see them realize their full value. We focus on stocks that have the ability to pay a consistent and
growing dividend, to provide cash for regular reinvestment and to build future income.
We invest our clients’ money as if it is our own. Our firm was founded on the idea that we would develop and refine in-
vestment strategies that meet our long-term investment objectives. We also invest our money right along with clients. In other
words, we believe in “eating our own cooking.” Put another way, we will never offer an investment or strategy to clients that we
would not be willing to put 100% of our personal assets behind.
We are committed to minimizing client fees, brokerage commissions and taxes. You see, we don’t like to pay
them either. We start with our fee, which is highly competitive with alternatives in the investment management industry. We also
minimize brokerage commissions by utilizing the most efficient internet trading platform available. Finally, we minimize commissions
and capital gains taxes by keeping portfolio turnover to a minimum. We really do believe in the long-term ownership of quality assets.
We employ a disciplined, consistent investment and security selection process. We believe successful investment
management requires a sound investment philosophy and a consistently applied selection process. Jumping from one investment
fad to the next will only produce mediocre investment results. We have developed an equity selection process based on more than
100 years of investment research and stock market history. Our decisions are based on an objective assessment of each invest-
ment’s individual merits based on detailed quantitative analysis—not on emotion.
We believe in personalized portfolio management and client communications. Each client account is managed
individually within our overall investment strategy to meet their personal investment objectives. We will limit our firm’s growth to
provide our clients with a highly personalized investment management service and communications to meet each client’s individual
needs.
Fixed income securities (bonds) do not create wealth. They can, however, provide additional current income, principal
protection and portfolio diversification.
Deschaine & Company EQUITY INCOME Portfolio Strategy Firm Background
7. Deschaine & Company, L.L.C.
WHY DIVIDENDS ARE IMPORTANT
Dividends are an important component of total stock returns. From 1926 through 2008, the reinvest-
ment of dividends accounts for 96% of the total return from common stocks. To ignore dividends is to ignore
the benefits a growing dividend can have on a stock portfolio’s long-term returns. The longer the time horizon,
the more valuable steady and growing dividends are to total return due to the power of compounding.
Dividends are a critical component of total stock returns in bear markets. While dividends are im-
portant in all markets, they are a critical component of total return for stocks in bear markets—like the one
we’ve experienced since 2000. Since 2000, capital returns from stocks are negative while dividends pro-
duced a positive return.
Dividends are an objective measure of profitability and a sign of financial strength. You can’t fake
dividends, either the company has the financial ability to pay the dividend or not. No amount of accounting
manipulation can make up for a lack of cash. A growing dividend is also a sign of a company’s financial strength.
Dividends provide cash for living expenses. Dividends of quality companies tend to grow overtime, pro-
viding purchasing power protection ahead of inflation
Dividends provide cash flow for reinvestment. Dividends provide cash for reinvestment. Growing divi-
dend income provides the ability to take advantage of buying opportunities without having to sell a stock. This
minimizes portfolio turnover and trading costs while maximizing portfolio investment flexibility.
Dividends are much more predictable than capital gains. Dividends are a more consistent and predict-
able source of investor return than capital gains. In these uncertain times, that’s reassuring.
Dividend yields are at levels not seen in many years. A carefully selected portfolio today could yield as
much as 7% and have the potential to grow dividends at the rate of 8 to 12% annually.
Deschaine & Company EQUITY INCOME Portfolio Strategy Firm Background
8. Deschaine & Company, L.L.C.
Investment Management Fee Schedule
An Annual Investment Management Fee of
1% on the first $2.5 million assets under management,
3/4 of 1% on the next $2.5 million
And 1/2 of 1% on the balance
The fee is payable quarterly in advance.
The State of Illinois and the Securities and Exchange Commission requires a written advisory agreement between the investment advisor and client. Deschaine & Company would be happy
to provide a standard investment advisory agreement for review and approval by the client at no charge. Deschaine & Company’s standard agreement is cancelable by either party with a
30 day written notice. The pro-rated portion of any advanced fee will be refunded in the event of a cancellation by either party.
In accordance with Rule 204-3 of the investment advisors act of 1940, a copy of the Form ADV-Part II, on file with the State of Illinois, is available upon request. The firm is registered
in Illinois and Missouri. Note: The fee quoted above is for investment advisory services provided by Deschaine & Company and does not include brokerage commissions, custody charges or
account expenses related to other service providers.
Deschaine & Company EQUITY INCOME Portfolio Strategy Firm Background
9. Deschaine & Company, L.L.C.
OUR EQUITY INCOME PORTFOLIO STRATEGY
The Benefits of a High-Yield, Dividend Growth Investment Strategy
High Current Income Principal Protection in down markets
Long-term Income Growth Inflation Hedge
Potential for Asset Appreciation Maximizes the Power of Money to Compound
“The greatest mathematical discovery of all time is the
power of money to compound.”
—Albert Einstein
Deschaine & Company EQUITY INCOME Portfolio Strategy “The Case for Dividend Investing”
10. Deschaine & Company, L.L.C.
WHY DIVIDENDS ARE IMPORTANT: THEY Maximize the Power of Money to Compound
THE CONTRIBUTION OF DIVIDENDS TO TOTAL RETURN OVER TIME
120%
100%
80%
“Dividends are good because
four times a year they remind
the CEO that it’s not his company.” 60%
—Michael Goldstein, 96%
Professor Babson College 40%
63%
43% 50%
20%
0%
5 years 10 years 20 years 82 years
Note: common stock dividends are not assured payments. Dividends are paid at the discretion of the board of directors
and the amount of dividend can change at any time. From 1926 to 2008, reinvesting dividends accounted for 96% of the
stock markets total return after inflation. Source: “The Future for Investors, Jeremy Siegel, 2007
Deschaine & Company EQUITY INCOME Portfolio Strategy “The Case for Dividend Investing”
11. Deschaine & Company, L.L.C.
DIVIDENDS REALLY MATTER: Dividend re-investment dramatically improves results over the long term
S&P 500 from 1966 to June 2009 $65.00
ANNUAL CAPITAL RETURN: 7.0 %
ANNUAL DIVIDEND RETURN: 3.4% Growth of a Dollar from Total Return 1966 to July 2009 ($37.59) $60.00
$55.00
The longer the time period, the greater dividends
and compounding from dividend reinvestment $50.00
contributes to the stock market’s total return.
$45.00
$40.00
$35.00
Growth of a Dollar from Capital Return ”Only” 1966 to June 2009 ($9.44) $30.00
$25.00
Growth of a Dollar from Dividend Return ”Only” 1966 to 2009 ($4.06) $20.00
$15.00
$10.00
$5.00
$‐
1966
1967
1968
1969
1970
1971
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
Deschaine & Company EQUITY INCOME Portfolio Strategy “The Case for Dividend Investing”
12. Deschaine & Company, L.L.C.
MAXIMIZE DIVIDEND INCOME (OUR GOAL: DOUBLE DIVIDEND INCOME EVERY FIVE YEARS.*)
Strategy to Achieve Our Investment Objective
Invest in High Yield stocks with a history of dividend growth.
Buying them when their current yield > their 5-year average yield.
Reinvest all dividend and investment income cash flows in a timely manner.
Secondary Portfolio Objectives
PROTECT PRINCIPAL by:
Creating a broadly diversified portfolio of quality stocks
And maintaining the flexibility to hold cash reserves
(*Assumes full reinvestment of all dividend income over the five-year period.)
Deschaine & Company EQUITY INCOME Portfolio Strategy “The Case for Dividend Investing”
13. Deschaine & Company, L.L.C.
OUR FORMULA FOR MAXIMIZING DIVIDEND INCOME
+ High Dividend Yield WHILE WE
FOCUS HERE
+ High Dividend Growth
+ Timely Dividend Re-investment*
MOST = Growing Income
INVESTORS
FOCUS HERE
+/– Gain/Lose on Capital*
= Total Return
*(Buy when the current dividend yield is above 5-year average dividend yield to maximize compounding.)
*(We think Capital Returns could be negative over the next ten years!)
Deschaine & Company EQUITY INCOME Portfolio Strategy “The Case for Dividend Investing”
14. Deschaine & Company, L.L.C.
WHAT WE HAVE TO EARN TO DOUBLE DIVIDEND INCOME EVERY 5 YEARS
Our EIP Actual S&P 500
Target Since 2000 Since 2000
+ High Dividend Yield > 5.0% 6.1% 1.7%
+ High Dividend Growth > 10.0% 12.8% 7.6%
+ Timely Dividend Re-investment*
= Growing Income (Annual Income Growth Rate) 15.0% 17.3% 1.8%
+/– Gain/Lose on Capital* 0.0 1.8% - 4.6%
= Total Return (Annualized Total Return Dec 2000 Sept 2009) NA 7.4% - 2.3%
*Buy when the current dividend yield is above 5-year average dividend yield to maximize compounding. Assumes full reinvest-
ment of all dividend income. *We think Capital Returns could be negative over the next ten years!
Deschaine & Company EQUITY INCOME Portfolio Strategy “The Case for Dividend Investing”
16. Deschaine & Company, L.L.C.
OUR EQUITY INCOME PORTFOLIO HISTORICAL RESULTS
Investing $1,000,000 on December 31, 2000, where would you be today?
Deschaine & Company
Vanguard S&P 500 Index Fund
EQUITY INCOME Portfolio*
Annual Income* Year End Portfolio Value Annual Income Year End Portfolio Value
2008 $ 176,366 $ 2,137,878 $ 22,975 $ 785,045
2007 $ 166,988 $ 2,821,164 $ 22,247 $ 1,239,545
2006 $ 122,904 $ 2,812,726 $ 18,964 $ 1,176,226
2005 $ 102,053 $ 2,300,422 $ 17,249 $ 1,018,397
2004 $ 93,697 $ 2,207,699 $ 16,696 $ 972,574
2003 $ 80,422 $ 1,767,432 $ 12,076 $ 879,075
2002 $ 84,468 $ 1,314,955 $ 11,295 $ 685,273
2001 $ 49,245 $ 1,216,400 $ 10,504 $ 879,452
*Represents the equity “only” total returns for the Equity Income Portfolio for the periods shown to compare to the equity returns of Vanguards S&P 500 index fund. Returns do not reflect the impact of the cash reserves held in the portfolio.
Annual total income growth rate for the Equity Income Portfolio is 17.3% compared to 10.3% for the Vanguard S&P 500 index fund. Note: past performance is not a guarantee of future results.
Deschaine & Company EQUITY INCOME Portfolio Strategy “The Case for Dividend Investing”
17. Deschaine & Company, L.L.C.
OUR POTENTIAL RETURN EXPECTATIONS
Potential Annual
Potential Annual Returns from: Return Range
Low High
From Current Dividend Yield (As prices go down Yields go up!) 5.0% 7.5%
From Dividend GROWTH (Estimated Annual Dividend Growth rate for EIP: 8-12%) 1.0 1.5
From Timely Dividend Re-investment (Buy when current yield is above 5-year average) 0.5 1.0
Return from Capital Appreciation (We think it will be negative!) -10.0 0.0
Interest income from bonds, cash and preferred securities 1.0 2.0
Equals a potential: 0.0 to 9% long-term expected annual return of: 0.0% 9.0%
Deschaine & Company EQUITY INCOME Portfolio Strategy “The Case for Dividend Investing”
18. Deschaine & Company, L.L.C.
Does EQUITY INCOME Make Sense Today?
STEADY, GROWING INCOME, PROTECTION OF PRINCIPAL, YOU DECIDE:
BULL MARKETS: Incremental returns gained from real, growing cash flow (dividends, interest income.)
BEAR MARKETS: Crucial in generating positive portfolio returns, insulates and protects capital.
GROWING INCOME + CONSISTENT = COMMONSENSE APPROACH
Positive Cash Flows Downside Protection For All Seasons
Deschaine & Company EQUITY INCOME Portfolio Strategy “The Case for Dividend Investing”
19. Deschaine & Company, L.L.C.
The Advantage to High-Yield Strategy in Down Markets
When stock prices go DOWN, dividend yields go UP Dividend
Yields
Go UP
When Stock
Prices Go
DOWN
Declining stock prices allow us to capture
higher and higher dividend yields all the
way to the bottom of the bear market!
Deschaine & Company EQUITY INCOME Portfolio Strategy “The Case for Dividend Investing”
20. Deschaine & Company, L.L.C.
Our EQUITY INCOME STRATEGY Total Return Vs. S&P 500 Index (December 31, 2000 to September 30, 2008)
$2.50
$2.25
$2.00
$1.75
EIP Total Return: Dec 31, 2000 to Sept 30, 2009 $1.50
$1.25
$1.00
$0.75
S&P 500 Total Return: Dec 31, 2000 to Sept 30, 2009
$0.50
4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 1Q
00 01 01 01 01 02 02 02 02 03 03 03 03 04 04 04 04 05 05 05 05 06 06 06 06 07 07 07 07 08 08 08 08 09 09 09
*EIP Total Return shown are net of management fees at 1/2 of 1 % annually and brokerage transaction fees of $7.00 per trade. Additional performance disclosures are on page 29.
Deschaine & Company EQUITY INCOME Portfolio Strategy “The Case for Dividend Investing”
21. Deschaine & Company, L.L.C.
OUR EQUITY INCOME Portfolio: Gross Annual Returns 2000-2008
Total
Cumlt Annualized
2008 2007 2006 2005 2004 2003 2002 2001 Returns Returns
EQUITY INCOME - 17.5 1.1 19.6 3.9 19.7 19.8 7.2 16.3 85.1% 8.0%
S&P 500 Index - 37.0 5.5 15.8 4.9 10.9 28.7 - 22.1 - 11.9 -20.9% - 2.9%
*Includes yield on money market funds held in the portfolio.
Deschaine & Company EQUITY INCOME Portfolio Strategy “The Case for Dividend Investing”
22. Deschaine & Company, L.L.C.
EQUITY INCOME Portfolio Annualized Returns (For Periods ending September 30, 2008)
3rd Total % Annualized
Qrt YTD One Three Five Returns Since % Returns
EQUITY INCOME Portfolio 2009 2009 Year Years Years Inception* Since Incept
Total Returns 7.4 3.4 - 12.8 - 3.1 2.5 89.9% 7.6%
S&P 500 Total Return 15.6 19.3 - 6.9 - 5.4 1.0 - 5.3% - 0.63%
* Inception of the Equity Income Portfolio is December 31, 2000
Performance Disclosure: The investment results presented here are for various periods covering the period of December 31, 2000 through June 30, 2008 for the EQUITY INCOME Portfolio strategy outlined in this presentation. The
equity “only” returns represent the results of the equity holdings of the portfolio and are calculated using AIMR complainant standards. The total returns represent the net returns for an actively managed portfolio of the recommended
holdings of the EQUITY INCOME Portfolio net of fees of .5% annually and $7.00 per transaction commissions but do not take into consideration the impact of taxes in the calculations. Tax consequences are not estimated, but annual
portfolio turnover was 20.69% for the nine year history of the portfolio. The results are for an actively managed portfolio of the firm’s EQUITY INCOME Portfolio holdings and are representative of actual client portfolio purchase and
sales, industry weightings and activity. Actual client portfolio results may differ from those shown here for any number of reasons, including account inception date, individual portfolio goals and objectives, cash reserves requirements and
other factors not in keeping with the recommended EIP strategy outline in this presentation. The information for market data has been prepared from sources deemed reliable, but its accuracy is not guaranteed. It should not be assumed that
any securities or strategy discussed in this presentation will be profitable or will equal past performance. Nor should anything in this presentation be construed as an offer to buy or sell any securities discussed herein. Deschaine & Company,
and/or one or more of its clients employees, family or friends, or related accounts as defined by the SEC may have a position in the securities discussed herein. @All rights reserved. Reproduction of this publication is strictly forbidden
without the expressed written consent from Deschaine & Company or it’s legal representative.
Deschaine & Company EQUITY INCOME Portfolio Strategy “The Case for Dividend Investing”
23. Deschaine & Company, L.L.C.
OUR EQUITY INCOME PORTFOLIO Security Selection Process
Typical Output
STEP 1): Screen domestic universe of 11,600 common stocks for stocks with a DIVIDEND YIELD above 3%. About 1,600 stocks
STEP 2): Screen for 1, 3, and 5-year positive DIVIDEND GROWTH. 300 stocks
Screen for ATTRACTIVE VALUATION (Price to Cash Flow, Price to Sales, etc.)
STEP 3):
And Positive and consistent EARNINGS GROWTH.
100 stocks
Track stocks with a Current Dividend Yield above their 5-year Average Dividend
STEP 4): Yield. (Final output is highly dependent on prevailing stock market conditions.) 30–60 stocks
We then construct a diversified portfolio from the selections with a current yield above their 5-year average dividend
STEP 5): yield. Sector and industry weightings are a direct result of the output of the process. We do over-weight industries and
sectors based on the output, subject to the usually portfolio risk controls and client portfolio constraints.
Deschaine & Company EQUITY INCOME Portfolio Strategy Security Selection Process
24. Deschaine & Company, L.L.C.
AN EXAMPLE: ALTRIA CORP (MO) Dividend & Yield History: March 1980 through December 2008
13% $1.30
12% NOTE: all date includes Kraft and Phillip Morris International. As of December 31, 2008, $1.20
MO was a buy (or an addition to with new cash) as its dividend yield (6.0%) was above it’s 5-year average 4.5%.
11% (As was KFT and PM) A current yield above the green line is a screaming BUY! $1.10
10% $1.00
9% $0.90
8% MO Dividend Yield: $0.80
Above 5.3% Is a Strong Buy Signal
7% $0.70
6% BUY $0.60
5% $0.50
HOLD
4% $0.40
SELL
3% $0.30
Quarterly $ Dividend (right axis)
2% $0.20
Dividend Yield is quarterly dividend rate annualized, divided by month end
1% share price. The peak? March 2000 when tobacco litigation concerns depressed MO’s stock price. $0.10
0% $-
Jan-80
Jan-81
Jan-82
Jan-83
Jan-84
Jan-85
Jan-86
Jan-87
Jan-88
Jan-89
Jan-90
Jan-91
Jan-92
Jan-93
Jan-94
Jan-95
Jan-96
Jan-97
Jan-98
Jan-99
Jan-00
Jan-01
Jan-02
Jan-03
Jan-04
Jan-05
Jan-06
Jan-07
Jan-08
Jan-09
Deschaine & Company EQUITY INCOME Portfolio Strategy Security Selection Process
26. Deschaine & Company, L.L.C.
With Our EQUITY INCOME Strategy it’s: Buy High & Sell Low!
BUY HIGH: A stock is a buy when its current dividend yield is > its 5-year average yield.
HOLD: A stock is a hold as long as it maintains the current cash dividend.
SELL LOW: A stock is sold if it cuts its dividend (for whatever reason), or if the current yield
drops one standard deviation below the stock’s five-year moving average yield.
Deschaine & Company EQUITY INCOME Portfolio Strategy Security Selection Process
27. Deschaine & Company, L.L.C.
A VALUATION SELL EXAMPLE: KIMCO REALTY (KIM) BOUGHT December 29, 2000 Sold: April 16, 2007
$0.50 8.00%
Bought KIM at $10.38 Dividend Yield 7.70%. Yield was above the 5-year average of 6.88%.
6.88% 7.00%
$0.45
BUY
6.00%
$0.40
HOLD
5.00%
$0.35
SELL 4.00%
$0.30
3.00%
3.00%
$0.25
2.00%
Sold KIM on April 16, 2007. Dividend below 3.0% was an all time low and 86% below the 5-year average of 6.0%
$0.20
KIM Total Return: 366.5%, S&P 500 over same period 20.8% 1.00%
Since sale on April 16, 2007: KIM -- 74% S&P – 25%
$0.15 0.00%
Dec‐99
Dec‐00
Dec‐01
Dec‐02
Dec‐03
Dec‐04
Dec‐05
Dec‐06
Jun‐99
Jun‐00
Jun‐01
Jun‐02
Jun‐03
Jun‐04
Jun‐05
Jun‐06
Jun‐07
Mar‐99
Sep‐99
Mar‐00
Sep‐00
Mar‐01
Sep‐01
Mar‐02
Sep‐02
Mar‐03
Sep‐03
Mar‐04
Sep‐04
Mar‐05
Sep‐05
Mar‐06
Sep‐06
Mar‐07
Sep‐07
The same was true for the REIT industry in general for this period as they went from undervalued and underappreciated in 2000
(in the throws of the internet, tech “bubble” to record valuations in 2007 and 2008 at the heights of the real estate “bubble.”
Deschaine & Company EQUITY INCOME Portfolio Strategy Security Selection Process