INVESTMENT PHILOSOPHY Reflecting the aftermath of the financial meltdown of 2008, we remain concerned that the stock market is subject to extreme volatility.  Since we desire to control risk, we are paying attention to market timing and are using various techniques including using short ETFs and hedging in order to mitigate risk.  We are using fundamental data, sentiment indicators and technical tools in order to control risk via asset allocation decisions. 

We believe the market is basically efficient when looking at individual stocks. Although one could not tell it from professional investment management performance records, most professional investors are not stupid. They usually know what is happening within the companies which they are interested in. The problem is that all information that is known about any particular company is already priced into the current stock price. This is particularly true with big companies like IBM, GM, GE, etc. Therefore, although we have no restriction about buying big cap stocks, our screens tend to pick out smaller, less widely followed companies. In general, our screens tend to favor two characteristics: 1. Momentum, because when things are going well for a company, the extent of the improvement is often underestimated, and 2. Value, because risk is minimized when value is maximized.