We believe a clear and well documented investment strategy will lead to more consistent investment performance and help mitigate emotional investment decisions. Most importantly, it will help avoid a scattered portfolio of individual investments that, when looked at as a whole, has no overall theme or objective.
To quote the late Dr. W. Edwards Deming, a world famous author and management consultant, “If you can’t describe what you are doing as a process, you don’t know what you are doing.”
A disciplined approach to investing means that you follow a set of rules and a plan of action. Like anything that requires a disciplined process, it is important that it is written, so there isn’t any question about what is meant. Our stratefy is based on our own algorithm or set of instructions. Once the strategy is written it provides a plan of action to revert back to and review in times of chaos, which will help to avoid making emotional investment decisions. It also allows for the review process and the ability to change if necessary because of flaws or a changing investment climate.
Is Parlan Active Management Strategy 7 or PAMS7.
PAMS 7 invests in U.S. Large-Cap equity through leveraged investment products that range from -300% to +300% S&P500 exposure. It uses our proprietary trading algorithm that is funded with exchange traded funds (ETF's) as the underlying investment. These types of investments are deemed riskier due to their leveraged aspect, which magnifies the gains or loses when compared to the underlying index, the S&P 500. In light of the potential increased negative risk, the strategy employs features such as stop losses, trailing stop losses and profit taking price points.
The average holding period of the investments usually results in short term gains or losses. At any point in time, the portfolio will be allocated between and long, short or cash positions. Holding both long and short positions simultaneously does not occur.The portfolio may hold significant levels of cash and cash equivalents up to 100%.
May this strategy, that was first developed in 1992, be right for you? Give us a call or contact us by email and we’ll be happy to discuss how we may be able to help you.
Discuss your current investment status with Helyn Bolanis
by calling (800) 537-1103