premier capital management

Investment Services

Premier Dynamic Strategies

We offer our clients various investment strategies including our Premier Dynamic Strategies.  These strategies acheived positive returns in 2008 and therefore have become quite popular.1  Here we describe the nature of these strategies so you can judge if you would like to learn more about them.

The Premier Dynamic Strategies range from conservative to aggressive and seek to achieve positive returns regardless of whether the stock market is rising or falling.  To achieve these objectives we employ special mutual funds that track stock market indexes such as the S&P 500 market index. Unlike most mutual funds, we can (1) exchange them frequently without penalties or transaction fees, (2) take positions that are inverse to a market index, and (3) use leverage.  Inverse means that if the market moves in one direction, the inverse fund will move in the opposite direction. For example, if the market moves down one percent, then the inverse fund tracking that market should move up one percent, or more if it is leveraged. Leverage means that the movement in the fund is magnified and can result in increased gains as well as increased losses. To achieve these three important characteristics the managers of these special mutual funds may purchase futures, options, and other financial instruments rather than purchasing only stocks and/or bonds as most mutual fund managers do.2

There are three mutual fund families we use that offer these special mutual funds. They are Rydex, ProFunds, and Direxion Funds. We use the mutual funds from these families that do not have commissions: they are no-load, no transaction fee funds. This means that you do not pay a commission to purchase these funds, nor do you pay a fee when we exchange them. The internal expenses of these mutual funds may be one or two percent higher than traditional index mutual funds, but we have found that the flexibility of being able to trade them daily and use their inverse and leveraged funds if we need to do so more than compensates for these higher internal expenses.

Premier Tactical Strategies

Premier Tactical Bond is a conservative strategy that seeks to obtain a positive return with very little volatility. To achieve this objective we switch between a money market fund and a high-yield bond mutual fund, typically from four to 16 times per year. We do this by using mutual funds that do not have commissions or trading fees, in other words, no-load, no transaction fee mutual funds.2

Premier Tactical Bond Growth offers the prospect of more growth but with greater volatility than Premier Tactical Bond. Here we switch among special high-yield bond mutual funds that move with or opposite the high-yield bond market and a money market fund. We may do this fifty or a hundred times a year. Therefore we use mutual funds that do not have commissions or trading fees.2

Premier Tactical Asset Allocation is based on the nearly universal portfolio diversification method called asset allocation. In markets characterized by low volatility asset allocation performs reasonably well; however, when markets become volatile, asset classes tend to move together as they did in 2000 and 2008, and the promised diversification dissipates. We attempt to solve this problem by moving capital into the best performing asset classes, possibly ending with substantial capital in cash if it is the best performing asset class at the time.

Invitation

If you would like us to manage any of your investments using one of our Premier strategies we will help you open an account at a third-party custodian, where you then grant us permission to manage it. It is important for you to know that only your money is deposited in your own account, not ours, and we only have permission to exchange the funds in your account and extract our management fee.

Please contact us if you would like to learn more about these strategies by clicking here.  We would welcome an opportunity to serve you.

Save Your 401k

401k plan losses in 2008 were so severe that some scholars and congressional leaders began calling for a government alternative to the 401k plan. We believe we have a better solution. During 2008 we helped a plan sponsor add two 401k accounts to his existing plan. These accounts, which we managed using our Premier Dynamic strategies, were the only ones at the end of the year that had made money.1  The plan sponsor, with the assistance of his compliance administrator, simply transferred assets from existing accounts to the additional 401k accounts without making any other changes made to the plan. We are now helping other 401k plan sponsors in similar ways, as well as managing the assets of company profit sharing and defined benefit plans.

If your 401k plan is now a “201k plan” we would welcome an opportunity to serve you. To learn how we might do so contact us by clicking here.


_________________________________________________________________________________________________________________________
1 Please note that for all strategies described herein that past performance is no guarantee of future performance. Also note that any investment in the stock market involves the risk of loss.
2 Please note that if these special mutual funds employ leverage they are inherently more volatile than most mutual funds. Even though we seek to reduce this volatility we cannot guarantee that your investment will be less volatile than most mutual funds or that it will not suffer a significant loss. Also note that even though we may invest in bond mutual funds, our strategies do not produce a fixed income stream from a usually stable principal.