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From Komfie Manalo, Opalesque Asia:
Dallas-based Registered Investment Adviser, Dower Strategic Capital, Inc., posted +4.80% gains in June (+9.27% YTD) on a "price timing" strategy that performs well especially in volatile markets.
In an exclusive interview with Opalesque, Dower Strategic President & CIO Daniel Dower said that his strategy outperformed its benchmarks (3.52% for SPY, the S&P 500 ETF) last month. He said, "Pricing timing works well in times of market volatility. When Intel dipped to $25, we increased our investment; when it rebounded to $27, we reduced it; similarly with Microsoft, Sysco, Johnson & Johnson, and other companies."
The strategy proved itself correct in the shaky markets of 2011 as Dower Strategic registered enormous alpha of +38.30% during the year. Dower explained that his firm took large positions in Intel below $20, and it was back to $25 in a few months. "All of our net positions are long only (as opposed to long/short), but we're very conscious about price, and we always hold significant dry powder," he said and added, " Historically, when the market drops, our portfolio drops far less (26% downside capture), and by buying in at better prices, we're able to capture significant upside (71% upside capture). Using options allows us to participate in upside in a cautious and measured way."
Barring a major change in economic conditions, Dower said he does n...................... To view our full article Click here
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