Investment Firm Launches New Fund Based on Wealth Building Principles of the Forbes 400 Richest People

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In an era of computer-driven models and high frequency trading, Philadelphia investment advisor continues to stick with the same wealth building principles that have worked for many of the Forbes 400 richest people.

Sahana Capital, a leading Philadelphia-based investment management firm, has launched a new fund that seeks to build wealth for its investors using the same principles that have successfully worked for some of the wealthiest people in the world today, including many on the Forbes 400 list of richest people.

The Sahana Growth Fund launched in September with the objective of generating long-term capital appreciation for its investors through a carefully selected, concentrated portfolio of stocks and ETFs. The Fund is the brain child of Michael Young and Hima Muttana, both of whom previously advised wealthy clients at UBS Financial Services, one the world’s largest managers of private wealth assets. Working with affluent clients gave them a first hand look at just how these individuals initially created their wealth.

First, they noticed that most wealthy individuals had achieved financial success through ownership, particularly ownership of businesses, rather than savings from an income. Furthermore, these ownership stakes were typically concentrated in just a few businesses or an industry that the person understood well and had experienced high growth. Finally, they held onto these ownership stakes over a number of years, and waited for the most opportune time to sell.

“If you look at some of the most financially successful people, from Bill Gates to Oprah Winfrey to Richard Branson, they all built their wealth through ownership of businesses, said Michael Young, managing partner of Sahana Capital.

According to Young, clients should view stocks as partial ownership of companies, rather than a ticker that moves up and down each day. He sees the stock market as a tool to acquire existing businesses that already generate profits and have a management team in place. The Sahana Growth Fund is concentrated, holding less than 20 securities, and maintains a long-term view. However, unlike buy-and-hold approaches, Young will often sell a stock when the price has risen above what he thinks the company is worth, and reinvest the profits into more attractively priced opportunities.

“We looked at the core principles financially successful individuals followed in order to achieve their success, and thought about how we could apply them to our role as investment advisors”, Young adds.

Investors seem to agree, as the Sahana Growth Fund has already attracted interest from both current and new clients. Young predicts the Fund will grow to be $10-$15 million over the next 12 months.

About Sahana Capital, LLC
Sahana Capital is a registered investment adviser based in Philadelphia. The firm provides portfolio management services through private accounts and the Sahana Growth Fund.

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Michael Young
Sahana Capital, LLC
(215) 701-4210 ext. 101
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