Newsletter November 10, 2002 November 10, 2002

This is a Special edition of the Newsletter to discuss the issue of Portfolio Management.


The Performance tab on my Site documents my very strong performance, particularly in comparison to the market. Since the start of 2000, my own personal equity portfolio has returned 21% (an average of about 7% per year) while the TSX has fallen 24% over that period. A strategy of buying only my strong buys at the start of each year and moving to the new strong buys just prior to each new year, would have returned approximately 29% in 2000, 14% in 2001 and 0% in 2002 to date, for a total compounded return of 47% over the nearly three year period.

Given the Market Crash, are You Looking for a Portfolio Manager, or are you considering changing advisors, if you use one now? If so, we may be able to help each other

  • I am very seriously looking at immediately getting into the portfolio management business. Long-time members of this Site know that I am extremely honest and trustworthy in my analysis, that I am far more knowledgeable about fundamentals, the economy, and business in general, than the typical broker or advisor, and that I have a strong track record of stock picks – very honestly tracked on this Site.  I believe that having both trust and respect for your advisor is essential.Please consider if you would be willing to place some or all of your investment funds under my management if I were to “set up shop”. I would be working in association with an existing smaller reputable and licensed firm. I would provide stock picking advice and place trading orders but you could still approve every trade before it was made. You could keep your portfolio with a discount broker of your choice. You would give me trading authority. (But not necessarily discretionary authority, you could still approve each trade before it was made, if you desired). Or, you could even do the trades yourself based on my advice. For stocks my fee would be 1% to 1.5% of the equity assets annually.

    Obviously, this would not be a good fit if you love to make your own decisions based on your own research, as I know many of you do. But if you would like to have a personal Portfolio Manager working for you, on at least a portion of your portfolio, then this might be a good fit. Please respond and let me know if you would be willing to move some or all of your portfolio management business to me in such a venture. Also indicate the $ size of the equity portfolio involved. Please, also indicate what Province you are in. This is only an exploratory question, I am not (yet) able to take on any clients. If you  are not interested, I am still very interested in your thoughts and reaction to my question.

    Again, your portfolio would remain with a bank or brokerage of your choice, you would simply be hiring me (and the licensed firm that I would work with) for Portfolio Management.

    This exploratory question is not a solicitation for funds. You are under absolutely no obligation, no matter what your response. This is simply a “what if” question.

    Thank you for taking the time to consider my question to you. Please take a moment to respond.

Shawn Allen, P.Eng, MBA, CMA

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