Bellaire, TX (PRWEB) November 17, 2010
Pivot Point Advisors' Diversified Income portfolio has outperformed the S&P500 over the past 1, 3, and 5 years. Diversified Income relies on a proprietary stock selection process and unique risk management to produce these returns.
The Diversified Income portfolio attempts to generate tax-friendly returns by emphasizing dividend yield and minimizing turnover. The strategy manages risk by enforcing wide sector diversification and focusing on larger, financially sound companies.
This defensive approach to stock investing worked well during the last few turbulent years. The cumulative return over the last five years was 13% for the Diversified Income portfolio compared to 2.8% for the S&P 500. Annualized this corresponds to 2.6% and 0.6% respectively.
For the last three years, Diversified Income returned an annualized -4.0% vs. -6.8% for the S&P 500. For the most recent year the returns were 13.2% and 9.7% respectively. These returns reflect the performance of the Diversified Income Composite(*) as of 9/30/2010. Composite returns are in US Dollars and net of all fees.
Diversified Income provides exposure to the US stock market with greater sector diversification than typical index funds. Stock indices tend to have uneven sector exposures ranging from as high as 20% to as low as 4%. Diversified income makes approximately equal allocations to all sectors and focuses on larger companies with strong cash positions.
More information about this strategy is available here: http://pivotpointadvisors.com/ProtectedPages/DI.aspx or by contacting us.
Pivot Point Advisors, LLC (http://pivotpointadvisors.com) is an asset management and research firm with a focus on systematic stock strategies. A systematic strategy can be beneficial in difficult times, because decisions are based on measurable quantities rather than predictions and fears.
Pivot Point Advisors' strategies take a robust approach, combining simple, well-tested, and commonsensical stock selection rules with effective risk management. This somewhat low-tech strategy design has helped Pivot Point's strategies to do well compared to peers. Unlike Pivot Point's programs, conventional quantitative strategies often rely heavily on correlations and similar statistical measures, which often change drastically during financial crises.
(*) PIVOT POINT ADVISORS, LLC ("PPA") is an independent registered investment advisor providing customized investment management services to individuals and institutions. PPA manages investment portfolios holding domestic equities, ADRs, mutual funds, ETFs and fixed income instruments with a variety of investment objectives. PPA's equity portfolios emphasize disciplined stock selection rules and predominantly focus on domestic value stocks.
PPA claims compliance with the Global Investment Performance Standards (GIPS®). To receive a list of composite descriptions of PPA and/or a presentation that complies with the GIPS standards, contact Dr. Martin Gremm at (713) 715-7000, or write PPA, 5959 West Loop South #333, Bellaire, TX 77401, or info(at)pivotpointadvisors(dot)com.
Past performance is no guarantee of future returns. Index and composite returns reflect reinvesting dividends. The benchmark and the composite have similar market capitalizations and geographic focus, but they can differ significantly in terms of sector and security weights. Benchmark and composite returns reflect the unusually difficult market conditions from 2008 to 2010. About 18% of firm assets are currently in this composite.