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The PMFM Difference
A Focus on Asset Preservation - Our investment philosophy is one of the unique attributes of our service. Our active asset allocation strategy has a goal of participating in gains when stock market conditions are good, and reducing exposure to the stock market when conditions are poor. We attempt to control portfolio risk through tactical asset allocation. Most investment advisors specializing in asset allocation use a strategic asset allocation approach (e.g. diversified portfolios based on Modern Portfolio Theory), rather than a tactical or active approach. While they often have subtle differences in their asset allocation models, they are essentially all offering the same type of strategy. Our approach is designed to participate when times are good, but protect when they are bad.
You Can't Live On Relative Returns - Most money managers focus on relative performance (or how a fund or portfolio has performed in relation to market indexes or peer groups of similar funds). Many will brag about how they "outperformed" by declining only 20% while the market was down 25%. At PMFM, we are focused on absolute performance. We define success as participating when times are good, and protecting when they are poor. We believe most clients do not care about relative returns, they care about absolute returns.
A Strategy for All Market Conditions - Ask the competition how they will react the next time the market experiences a significant decline. Often they will have one or two answers. The first is that they will rebalance to bring the target portfolio back in line. By definition this implies they will sell some of the best performing holdings and buy the worst performing holdings. Most investors simply cannot cope emotionally with this strategy quarter after quarter. Others may say, "that's just life in the stock market. Our portfolio is designed to ride out the ups and downs of the market." Again, most investors don't have the emotional discipline to stick with a strategy where the only consolation is "hang on, things will get better" while they continue to suffer losses. PMFM has strict sell disciplines in place with a goal of minimizing losses through the tough times. We think you actually "win by not losing."
You Get What You Pay For - We don't see the value in paying someone to simply rebalance a portfolio monthly, quarterly or annually. That service is available for free from most lifestyle or premixed balanced options, or can be done easily by you. We make adjustments to your portfolio based on market conditions, not based on the calendar.
Lengthy Track Record - We have been managing assets for nearly a decade. We have a track record encompassing the greatest bull market in history and the second worst bear market in history. Ask the competition for their return history - real client returns, not back tested, simulated or hypothetical results, but actual client results. IF they can provide a track record, you will likely find that our track record compares favorably.
We Practice What We Preach - We have our personal assets (IRA's, pension and profit sharing plans) in exactly the same portfolios as our clients. We believe in sharing the same percentage returns as our clients.
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