pitchbook for greenwich asset management group us adr stocks long only
DESCRIPTION
Pitchbook for Greenwich Asset Management Group US ADR stocks long onlyTRANSCRIPT
GREENWICH ASSET MANAGEMENT
Peter LundstedtGlobal Equity Strategy
Separately Managed AccountA Proprietary Processp y
(203) 622-1305Institutional�Use�Only
Firm Established in 2001Firm 100% Employee Owned
PROPRIETARY PROCESS
We use the quantitative research and technical analysis of leading financiali f ti id t t t i d l i ht d it tf li
STEP I
information providers to create customized equal weighted equity portfolios
The best attributes of each information providers is extracted and added to ourproprietary evaluation system
We use 12 measurements when evaluating whether or not a company should beadded to the portfolio
We look for each company selected to be in the top 15% of each fundamentalmeasurement category Very few stocks rank above 15% on ALL levels Each category
STEP IImeasurement category. Very few stocks rank above 15% on ALL levels. Each categoryis centered around financial health and overall demand of stock buyers
Each company’s fundamentals are then graded on 24 different indicators and broken down
STEP III
into four sectors: GROWTH, VALUE, PORFITABILITY and CASH FLOW
We look for each stock with a minimum score of 85 on a scale of 100 to survive the cut
6 2 Greenwich Office Park, Suite 300, Greenwich CT 06831 DOES NOT IMPLY FUTURE PERFORMANCE
PROPRIETARY PROCESS
10 000 70 Above�the�200�Day�
FUNDAMENTAL�SCREENING TECHNICAL�SCREENING
All�Stocks 10,000
2,000
STOCKS
70
65
STOCKS
yMoving�Average�Line�
700�– 1400�DayLinear�Regression��Line Position
(U.S.�and�ADR�Only)
Minimum�15%�ROE
200Top�Sectors�Emerge
60
Line�Position�
MACD�PositiveMoney�Flow�PositiveStochastic�Position
Top�15%�EarningsTop�15%�SalesTop�15%�Margins
100
70
50
40
VALUATION�MEASURESMarket�CapTrailing�P/EForward�P/EPEG�RatioPrice/Sales
/
Buy�BALANCEBuy�GROWTHBuy�VALUE
Ab h 200 D 70 40
30
Price/Book
FINANCIAL�MEASURESProfitabilityManagement�EffectivenessIncome�StatementBalance Sheet
Above�the�200�DayMoving�Average�Line
7
Balance�SheetCash�Flow�Statement
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BUY STRATEGY
TRENDING�UP
ABOVE 200 DAY MVAABOVE�200�DAY�MVA
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Source:�Greenwich�Asset�Management�Group�Research,�Market�Browser�8/2009
SELL STRATEGY
WHEN�A�TREND�IS�BROKENWHEN�A�TREND�IS�BROKEN
WHEN�CO�FUNDAMENTALS�CHANGE
BUYBUY SELLSELL
Source:�Greenwich�Asset�Management�Group�Research,�Market�Browser�8/2009
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GLOBAL DIVERSIFICATION
If the U S happens to be s ffering from an economic do nt rn or high inflation there ma be someIf the U.S. happens to be suffering from an economic downturn or high inflation, there may be somebetter investment opportunities abroad. Those investments abroad could help boost a portfolioweighted heavily in US equities when the U.S. stock market is not performing well
Th b f diff i k i d i h f i k Th i f lThere are a number of different risks associated with foreign stocks. There is, for example, countryrisk. There is also currency risk. Investors can expect occasional losses depending on market volatility.The manager will recognize losses in the portfolio when appropriate
While U.S. markets have performed well over the very long run, this is not necessarily the case withall foreign countries. Many countries suffer from political, social, and/or economic instability thatmakes investing in those countries less likely. Furthermore, foreign governments have different rulesregarding the regulation and taxation of securities that could be at odds with your investmentobjectives. We only invest in Foreign ADR's listed on a U.S. Exchange because of the stringentobjectives. We only invest in Foreign ADR s listed on a U.S. Exchange because of the stringentaccounting rules required to gain entrance, which allow us to measure those stocks using ourproprietary formula
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DIVERSIFICATION STRATEGY
Imagine�owning�a�portfolio�of�30�– 40�equal�weighted�stocks�similar�to�the�ones�below...�We�do.�This�is�what�we�want�a�stock�portfolio�to�look�like,�minus�the�last�two.
Goal of 30 – 40 Equal weighted Up�Trending Stocks
Source:�Greenwich�Asset�Management�Group�Research,�Market�Browser�8/2009��
13
Goal�of�30� 40�Equal�weighted�Up Trending�Stocks
Re�balance�Quarterly
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FIVE FOR THOUGHT
EARNINGS�CONSISTENCYBuffet’s�most�important�
fundamental�measurement�next�to�
LOWER�DEBTEquals�better�management�
and�more�money�flowing�into�
your stock as profits
AN�UP�TRENDING�STOCK
Indicates��consistent�demand
consumer�monopolyyour�stock�as�profits
A�MINIMUM�OF��15%�ROE
15%�return�on�equity��measures�good�
BUY�RECOMMENDETIONS
From�Multiple�independent�
Stock Analystsmanagement
Stock�Analysts
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RESEARCH: SIMULATED MODEL PERFORMANCEPERFORMANCE
Source:�Greenwich�Asset�Management�Group�Research,�informa.com�4/2010
17
Source:�Greenwich�Asset�Management�Group�Research,�informa.com�4/2010
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LIVE PERFORMANCE 2008-2009Global�Equity�Strategy��2008�– 2009
Live�Money
Greenwich�Asset�Mgmt.,�Group,�LLCLong�only�Global�Equity�Strategy
Model�Performance
Actual�Account�Performance
18
Source:�Greenwich�Asset�Management�Group�Research,�informa.com�4/2010
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Performance
RATIONAL CHOICES FOR ALLOCATING TO GLOBAL EQUITY STRATEGY NOW
Understanding�the�Global�Equity�Strategy�is�easy.�Many�other�successful�institutional�i t b i th i h ldi
Q
investors�are�buying�the�same�companies�you�are�holding.
Top�graded�stocks�that�you�hold�normally�decline�less�than�the�market�and�go�up�more in rising marketsmore�in�rising�markets.
All�of�your�top�grades�stocks�are�above�important�moving�averages�indicating�positive�demand.p
Your�global�equity�strategy�account�is�equally�diversified�among�many�top�graded�companies�which�generally�lends�itself�to�less�volatility.
You�have�control�and�daily�access�to�your�assets�through�your�custodian�viewable�over�the�internet.�
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HOW CAN YOU JUSTIFY ALLOCATING TO GLOBAL EQUITY STRATEGY NOW?
If other managers can allocate $40 billion into 40 stocks, one should be able to easilyll t h ll t t 40 ll di ifi d tf li iti
GLOBAL EQUITY STRATEGY NOW?
allocate a much smaller amount to 40 equally diversified portfolio positions.
You�always�know�that�your�account�buys�companies�with�the�highest�fundamentals�with�buy�recommendations from multiple independent stock analysts.recommendations�from�multiple�independent�stock�analysts.�
The�manager�has�invested�in�stocks�such�as�Apple,�Amazon.com,�Google,�general�Electric,�Proctor�&�Gamble,�Exxon,�IBM�and�Coke.
The�amount�an�investor�places�into�this�program�is�only�relative�to�the�client�investing�since�other�investors�have�different�agendas.�Hence,�it�is�important�to�understand�how�the�program�relates�to�your�agenda.the program relates to your agenda.
Too�many�institutional�investors�followed�the�crowd�in�2008�without�understanding�what�they�owned.�This�program�is�easy�to�understand,�control�and�explain�to�the�board.
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** For further consideration please email [email protected]
HOW CAN YOU JUSTIFY ALLOCATING TO GLOBAL EQUITY STRATEGY NOW?
If other managers can allocate $40 billion into 40 stocks, one should be able to easilyll t h ll t t 40 ll di ifi d tf li iti
GLOBAL EQUITY STRATEGY NOW?
allocate a much smaller amount to 40 equally diversified portfolio positions.
You�always�know�that�your�account�buys�companies�with�the�highest�fundamentals�with�buy�recommendations from multiple independent stock analysts.recommendations�from�multiple�independent�stock�analysts.�
The�manager�has�invested�in�stocks�such�as�Apple,�Amazon.com,�Google,�general�Electric,�Proctor�&�Gamble,�Exxon,�IBM�and�Coke.
The�amount�an�investor�places�into�this�program�is�only�relative�to�the�client�investing�since�other�investors�have�different�agendas.�Hence,�it�is�important�to�understand�how�the�program�relates�to�your�agenda.the program relates to your agenda.
Too�many�institutional�investors�followed�the�crowd�in�2008�without�understanding�what�they�owned.�This�program�is�easy�to�understand,�control�and�explain�to�the�board.
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** For further consideration please email [email protected]
DISCLAIMER� PAST�RESULTS�ARE�NOT�INDICATIVE�OF�FUTURE�RETURNS�
� THERE�IS�RISK�OF�LOSS�AS�WELL�AS�THE�OPPORTUNITY�FOR�GAIN�WHEN�INVESTING�IN�SEPARATELY�MANAGED��STOCK�ACCOUNTS.
Peter�LundstedtGreenwich�Asset�Management�Group,�LLCCEO,�Equity�Portfolio�Strategist�and�Equity�Portfolio�Advisers2�Greenwich�Office�Park,�Suite�300,�Greenwich,�CT�06831��USA�Tel: (203) 622-1305Fax: (203) 495 7590Fax: (203) 495-7590Web site: www.gamgllc.comEmail: [email protected]
FOR INSTITUTIONAL USE ONLY
DISCLAIMER: Peter Lundstedt is president of Greenwich Asset Management Group LLC (GAMGLLC) a registeredDISCLAIMER: Peter Lundstedt is president of Greenwich Asset Management Group, LLC, (GAMGLLC), a registeredinvestment adviser All material presented herein is believed to be reliable but we cannot attest to its accuracy. Investmentrecommendations may change and readers are urged to check with their investment counselors before making anyinvestment decisions. Opinions expressed in these reports may change without prior notice. Peter Lundstedt and/or thestaff at GAMGLLC may or may not have investments in any funds cited above.
PAST RESULTS ARE NOT INDICATIVE OF FUTURE RESULTS. THERE IS RISK OF LOSS AS WELL AS THE OPPORTUNITY FOR GAIN WHENINVESTING IN MANAGED ACCOUNTS. WHEN CONSIDERING ALTERNATIVE INVESTMENTS, INCLUDING HEDGE FUNDS, YOU SHOULDCONSIDER VARIOUS RISKS INCLUDING THE FACT THAT SOME PRODUCTS: OFTEN ENGAGE IN LEVERAGING AND OTHER SPECULATIVEINVESTMENT PRACTICES THAT MAY INCREASE THE RISK OF INVESTMENT LOSS, CAN BE ILLIQUID, ARE NOT REQUIRED TO PROVIDE PERIODICPRICING OR VALUATION INFORMATION TO INVESTORS, MAY INVOLVE COMPLEX TAX STRUCTURES AND DELAYS IN DISTRIBUTINGIMPORTANT TAX INFORMATION ARE NOT SUBJECT TO THE SAME REGULATORY REQUIREMENTS AS MUTUAL FUNDS OFTEN CHARGE HIGH
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IMPORTANT TAX INFORMATION, ARE NOT SUBJECT TO THE SAME REGULATORY REQUIREMENTS AS MUTUAL FUNDS, OFTEN CHARGE HIGHFEES, AND IN MANY CASES THE UNDERLYING INVESTMENTS ARE NOT TRANSPARENT AND ARE KNOWN ONLY TO THE INVESTMENTMANAGER.