If you have been displeased with the performance of your investment portfolio over the past ten years, the problem is very likely that you or your investment advisor are unknowingly pursuing an investment strategy which is counter to the way stock markets have historically behaved.
The vast majority of investors have a portfolio consisting of just three asset classes, stocks, bonds and cash, with stocks and bonds having the greatest allocation in their portfolio.

We call this the Yellow Brick Road; this relatively undiversified asset allocation produces unacceptable results during periods of sideways or declining stock markets, often requiring years of positive stock market performance just to get investors back to even.

The past 82 years of stock market data shows that markets don’t trade in the 3-5 year cycles that most investors believe in, rather stock markets trade in 17-20 year secular trends.  A buy and hold approach to stock market investments is totally  unproductive during these lengthy periods of high volatility, sideways or consolidating stock markets.

Investors pursuing a yellow brick road investment strategy are not only exposing their financial security to unnecessary risk, they are wasting the most precious gift investors have on their side – the time value or compounding of money.

As investors our task is to achieve attractive risk adjusted returns on our invested capital; we cannot control the direction of markets or individual asset classes, we can however control how we posture our portfolios relative to the markets or asset classes.

At Alpha Fiduciary our proactive tactical and agile asset allocation process across ten asset classes mitigates downside capture and positions portfolios opportunistically regardless of stock market conditions.

The foundation of our comprehensive investment process is the world class global economic research we procure.  From this research we focus globally on government, corporate and consumer sectors to identify the winners and losers of the macro environment.

The Alpha Model Asset Class allocations are constructed to express our assessment of global asset class fundamentals.  The allocations underweight and/or overweight asset classes and from a directional perspective can be long or short.

Our Tactical and Agile active management process is proactive and deliberate in its focus of protecting gains and limiting losses.  This is what makes us unique even from other multi-asset class portfolio management strategies.

Our trend following tactical process is administered weekly and begins with our technical analysis of each model component owned or in our model’s purview.  This in-depth weekly analysis provides us with two important benefits.  1.  It allows us to make informed buy, sell and stop decisions. 2. Since we are focusing on every component in our purview in this technical analysis we are often able to spot important relationships between asset class components.

It is also noteworthy, that all of our portfolios are managed as a model.  We construct trades based on our technical work for multiple possible scenarios that we envision.

Our directional bias can be either long or short, based upon our views both, technical and fundamental of a particular asset class.

This proactive tactical and agile process, across ten asset classes mitigates downside capture and positions portfolios opportunistically, regardless of stock market conditions.

Alpha Fiduciary Balanced +137.35% vs. S&P 500 -7.96% 9/30/2011

Alpha Fiduciary’s investment strategy performance is shown here in blue versus the S&P 500 in Green for the period January 1999 to present.

Notice the period from Jul 2000 through Jan of 2003 – this period is more commonly known as the tech wreck.  During this period of time the S&P declined 58% vs. our ten asset class model which completely preserved investor capital during this painful period for the S&P.  In 2003, when the S&P turned positive our diversified model maintained its performance gap over the S&P.  Since our model did not have to dig out of a large performance hole, we finished 2003 with more capital than the start of the tech wreck, in Jul of 2000.  If we look at the S&P after a healthy rally in 2003, investors in the S&P were still well below their Jul 2000 high water mark, in fact almost ten years later they’re still well below the Jul 2000 high water mark – not so for our model.  If the S&P declines 40% as it did in 2008 it must advance by 67% to reach breakeven, so the real benefit to our ten asset class model is it allows the modest returns that come in many years to be accretive - so you can see, you can win by not losing.

I think you will find the knowledge you gain as you explore our website will enlighten you to a more productive drama free investment process that is focused on one outcome – RESULTS!

IMPORTANT DISCLOSURE INFORMATION

Alpha Fiduciary, Inc. (AF) is an SEC registered investment adviser located in Phoenix, Arizona. AF and its representatives are in compliance with the current filing requirements imposed upon SEC registered investment advisers by those states in which AF maintains clients. AF may only transact business in those states in which it is noticed filed, or qualifies for an exemption or exclusion from registration requirements. AF’s web site is limited to the dissemination of general information pertaining to its advisory services, together with access to additional investment-related information, publications, and links. Accordingly, the publication of AF’s web site on the Internet should not be construed by any consumer and/or prospective client as AF’s solicitation to effect, or attempt to effect transactions in securities, or the rendering of personalized investment advice for compensation, over the Internet. Any subsequent, direct communication by AF with a prospective client shall be conducted by a representative that is either registered or qualifies for an exemption or exclusion from registration in the state where the prospective client resides. For information pertaining to the registration status of AF, please contact the SEC or the state securities regulators for those states in which AF maintains a notice filing. A copy of AF’s current written disclosure statement discussing AF’s business operations, services, and fees is available from AF upon written request. AF does not make any representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any unaffiliated third party, whether linked to AF’s web site or incorporated herein, and takes no responsibility therefore. All such information is provided solely for convenience purposes only and all users thereof should be guided accordingly.

HISTORICAL PERFORMANCE
Historical performance results for investment indices and/or categories have been provided for general comparison purposes only, and generally do not reflect the deduction of transaction and/or custodial charges, the deduction of an investment management fee, nor the impact of taxes, incurrence of which would have the effect of decreasing historical performance results. It should not be assumed that your account holding do or will correspond directly to any comparative indices.

HYPOTHETICAL INFORMATION:
This material contains certain hypothetical performance and portfolio information. No representation is made about the overall hypothetical portfolios or their suitability or potential benefits for any client or investor and no advice or recommendation is given with respect to such hypothetical portfolios which are included for illustration purposes only. The hypothetical portfolios do not represent actual client or investment accounts. Hypothetical information, including hypothetical performance results, have many inherent limitations. They are generally prepared with the benefit of hindsight, mat not involve financial risk or reflect actual trading or asset allocations for any portfolio and therefore do not reflect the impact that economic and market factors may have had on the manager’s or advisor’s investment decisions for that portfolio. In fact, there are frequently sharp differences between hypothetical results and the actual record subsequently achieved. No representation is made that such portfolio’s performance that such portfolio’s performance would have been the same as such hypothetical results had the portfolio been in existence during such time.