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We focus on investment management with a holistic approach that concentrates on goals and risk tolerance. At the center of our practice is our slate of proprietary strategies built to suit a variety of goals and investment styles through any kind of market.
Each of our strategies is actively managed, a hands-on style in which the investment manager monitors and adjusts the strategy holdings according to the shifts of the market. In contrast, passive investment strategies are adjusted and rebalanced less regularly, and are typically invested in investment vehicles like mutual funds. A good portion of our strategies are invested wholly in stocks – we avoid abstract market tactics like margin trading, options trading, exchange traded funds and short selling that we believe can add unnecessary risk to a personal investment account.
Our investment process is based on fundamentals, independent research and our innovative statistical market analysis, and each strategy is guided by Bernard Semon, an investment manager with more than 40 years of experience in the financial markets. The Stratos strategies, defensive in nature and managed with discipline, are designed to work in all market cycles – bulls, bears and in-between.
We operate with transparency. Each of the Stratos strategies has been constructed with the following principles and assumptions:
- Diversification among sectors works to reduce risk over time.
- There are no gimmicks: each strategy is a pure play on stocks and alternative investments with no margin, option or short trades.
- Active management is crucial to investment performance, risk and reward analysis, and assists with the preservation of principal.
- Efficient tax management requires a focus on long-term results.
- We believe more stocks are better than fewer, thereby helping to reduce the risk a poor performer poses to a strategy.
- Stocks are either a buy or a sell – we maintain an exit strategy for each security within a strategy.
With each investment within the strategy, we aim to maintain disciplined diversification and responsiveness to market shifts in our goal to produce quality risk management and strive to provide better than average returns compared to passive investment strategies.
Any opinions are those of the investment manager(s) and their team and not necessarily those of Raymond James. Opinions are subject to change at any time without notice. Content provided herein is for informational purposes only and should not be used or construed as investment advice or a recommendation regarding the purchase or sale of any security outside of a managed account. This should not be considered forward looking and does not guarantee the future performance of any investment.
All investments are subject to risk, including loss. There is no assurance that any investment strategy will be successful. Asset allocation and diversification does not ensure a profit or protect against a loss. It is important to review the investment objectives, risk tolerance, tax objectives and liquidity needs before choosing an investment style or manager.
The individual(s) mentioned as the investment manager(s) are financial advisors with Raymond James participating in a Raymond James fee-based advisory program. This is an investment advisory program in which the client’s financial advisor invests the client’s assets on a discretionary basis in a range of securities. Raymond James investment advisory programs may require a minimum asset level and, depending on your specific investment objectives and financial position, may not be suitable for you.
In a fee-based account clients pay a quarterly fee, based on the level of assets in the account, for the services of a financial advisor as part of an advisory relationship. In deciding to pay a fee rather than commissions, clients should understand that the fee may be higher than a commission alternative during periods of lower trading. Advisory fees are in addition to the internal expenses charged by mutual funds and other investment company securities. To the extent that clients intend to hold these securities, the internal expenses should be included when evaluating the costs of a fee-based account. Clients should periodically reevaluate whether the use of an asset-based fee continues to be appropriate in servicing their needs. A list of additional considerations, as well as the fee schedule, is available in the firm’s Form ADV Part 2 as well as the client agreement.
ASSET CLASS RISK CONSIDERATIONS
Every type of investment, including mutual funds, involves risk. Risk refers to the possibility that you will lose money (both principal and any earnings) or fail to make money on an investment. Changing market conditions can create fluctuations in the value of a mutual fund investment. In addition, there are fees and expenses associated with investing in mutual funds that do not usually occur when purchasing individual securities directly.
This strategy may contain exchange traded funds (ETFs) and/or mutual funds. Investors should carefully consider the ETF and mutual fund investment objectives, risks, charges and expenses before investing. The prospectus contains this and other information and can be obtained from the ETF or mutual fund sponsor as well as from your financial advisor. The prospectus should be read carefully before investing.
ETF shareholders should be aware that the general level of stock or bond prices may decline, thus affecting the value of an ETF. Although ETFs are designed to provide investment results that generally correspond to the price and yield performance of their respective underlying indexes, the funds may not be able to exactly replicate the performance of the indexes because of fund expenses and other factors.
Equities: Investors should be willing and able to assume the risks of equity investing. The value of a client’s portfolio changes daily and can be affected by changes in interest rates, general market conditions and other political, social and economic developments, as well as specific matters relating to the companies in which the strategy has invested. Companies paying dividends can reduce or cut payouts at any time.
Fixed income: All fixed income securities are subject to market risk and interest rate risk. If fixed income securities are sold in the secondary market before maturity, an investor may experience a gain or loss depending on the level of interest rates, market conditions and the credit quality of the issuer. There is an inverse relationship between interest rate movements and bond prices. Generally, when interest rates rise, bond prices fall and when interest rates fall, bond prices generally rise. Please note these strategies may be subject to state, local and/or alternative minimum taxes. You should discuss any tax or legal matters with the appropriate professional.
Sectors: Strategies that invest primarily in securities of companies in one industry or sector are subject to greater price fluctuations and volatility than strategies that invest more broadly. The strategy may have over-weighted sector and issuer positions and may result in greater volatility and risk. Investing in small-cap stocks generally involves greater risks, and, therefore, may not be appropriate for every investor. The prices of small company stocks may be subject to more volatility than those of large company stocks.