Again, our program is not for everyone.  It should only appeal to people who are sick and tired of being sold a bunch of BS. <?:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />

So, you figure they’ll buy your BS now? I feel bad for you Lance, all the pressure you must be under, being the only honest investment rep in the world and all…

 We provide rational, simple, inexpensive strategies that will optimize most peoples situations with the least cost. 

“We”? You got a mouse in your pocket? The rest of your line is suitable for a marketing brochure, but those of us in the biz can see right through it.

 If you would bother to look you will see that most major DB plans have a good deal of their fixed income portfolios in immunized bond portfolios. 

This from the guy that can’t even admit REAL money is run largely with active management.  BTW buying nothing short term T zeros does not an “immunized bond portfolio” make.

This is our simplified version of that.  The laddered treasuries provide certainity, it is easily understood, very inexpensives and has no real market risk. 

Real answer, it’s easy for you and your clients are too dumb to know how much FI return they’re missing….

 We buy blocks of a millions at a time and allocating them into the client accounts.  We do not mark them up - again something that you may not understand.   

ROFLMAO, again with the “we”. “We” with the 1.2B in AUM…. Btw, just what is it about buying blocks and not marking up you figure other people with far more time in the biz than you won’t understand. If you knew anything about flat-fee accounts or managed accounts you’d know that’s nothing special, it’s common practice.

If all you have left is insults maybe you should say "Uncle"

I asked plenty of point questions that you’ve dodged. BTW, if you’re too dimwitted to understand that your entire thread consisting of “If you were honest and smart like me you’d run money like this, there rest of you are fools and thieves” mantra set the tone of the follow-on conversation, you’re too dimwitted to bother with.

Best

Lance<?:namespace prefix = v ns = "urn:schemas-microsoft-com:vml" />

Say Hi to Prince Charles for me

I guess our clients would be better off paying 1.50% in SMA. 

<?:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" /> 

Why not, you're charging them between 75 bps to north of 110 bps, with ZERO personalization, they'll NEVER beat the indexes with your method and god only knows how much they're losing in your joke of a FI strategy....

 It is an absolute travesty for the investing public to pay a mutual fund 80 bps for underperforming their benchmark.  <?:namespace prefix = v ns = "urn:schemas-microsoft-com:vml" />

Yeah, they should pay you from 70 to over 110 bps to be folded into a one-size-fits-all 7 ETFS and T zeros strategy that assures them they'll never even match index returns.

We stay from the inefficient lower capitlized non-US stuff.

"We" are missing returns.....the ability to profit from said inefficiencies is called "Alpha"....

No active manager can consistantly beat their benchmark.

A claim you continue to make even though it's been pointed out to you repeatedly that trustees who run major pools of money reject your theory...

 We just use ETFs and Index like funds (15 - 30 bps) 

More like 25 to 60 and then you toss in your 50 which you charge forever even though your work is done after the first buys and sells...

 TOTAL COST to our clients last year averaged 68 bps. 

Absolutely false... 25 + 50 is 75 MINIMUM..and that's for the promise of eternal underperformance, zero personalization and a FI strategy that is best described as amateurish at best.

 The industry has a bad rap becuase reps are trying to win trips to <?:namespace prefix = st1 ns = "urn:schemas-microsoft-com:office:smarttags" />Bermuda!  Or …

And since there are some bad apples everyone but you and your mouse are crooks. Got it

  As I said I want you clowns out the selling the BS that you are paid to believe - it just makes our job easier when we turn on the lights for people.

Again, when will you be "turning on the lights" for those poor, dimwitted souls like the ones at CALPERS who run real money? You figure the "everyone but me in this biz is a thief, Mr and Mrs Prospect" is a winning strategy?

Keep the comments coming boys - it is honing up my presentation skills!

"Presentation skills"? If they're as weak as the skills you've shown here, you'll be back to selling patio furniture inside 6 months...

Lance! 

AKA, the Queen of England...

[quote=mikebutler222]

Keep the comments coming boys - it is honing up my presentation skills!

"Presentation skills"? If they're as weak as the skills you've shown here, you'll be back to selling patio furniture inside 6 months...

[/quote]

Amen, Brother Mike!!!  

Our average fees result from being 30-35% in non-fund incumbered treasuries.  So please correct your math.

Regardless what anyone claims there is no active manager that consistantly beats their benchmark. In fact if a manager beats their benchmark it raises skeptism that their style drifted from what they are supposed to be doing and they are taking on more risk than they are supposed to.

There is no such thing as a professional money manager, only professional money gatherers. At least I will admint what I do - I gather assets and provide an innovative value for investors.

Again, this rational, simple yet effective strategy appeals to a lot of people. Especially non-industry technical people like attorneys, accountants, engineers and doctors.  It is certainly not for everyone - only those fed up with BS that is pumped at them. 

Can any of y'all show any correlation that performance is in any way linked to "personalized" portfolios or "customized" investment programs or that "tailored" approach.   All superficial meaningless marketing terms that have ZERO to do with performance.

The only determining factor in performance is allocation and cost.  If you are concerned about risk, then make sure that you have a rational portfolio construction policy with rebalancing triggers that make sense.

Again - you fellas should say UNCLE becuase all you have left is insults and baseless marketing bullets for Ol' Lance! 

Our average fees result from being 30-35% in non-fund incumbered treasuries.  So please correct your math. <?:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />

Every other claim you’ve made has been demonstrably false, and now you want us to believe you do the FI part of your portfolios for free? Please….

Regardless what anyone claims there is no active manager that consistantly beats their benchmark.

You keep saying that and the people that really do run large pools of money don’t believe you….

 In fact if a manager beats their benchmark it raises skeptism that their style drifted from what they are supposed to be doing and they are taking on more risk than they are supposed to.

“Raises skeptism” (sp)? Hardly, that’s what attribution reports are all about. It happens all the time and with regular consistency.

There is no such thing as a professional money manager, only professional money gatherers.

You keep repeating that mantra and who knows, some day you might even believe it yourself. Just remember, as you read those DFA brochures as bedtime stories, there are boatloads of very smart, very experienced people running real money, the sort you’ll never be entrusted with, who think you’re deluded.

 At least I will admint what I do - I gather assets and provide an innovative value for investors.

Now it’s you and not “we”? Great, progress is being made. Someday you might progress to the point that you’ll understand that the “service” you provide is little more than an amateur’s way to guarantee underperformance.

Again, this rational, simple yet effective strategy appeals to a lot of people.

There’s always an audience for something…Amway sells big too, I’m told…

Especially non-industry technical people like attorneys, accountants, engineers and doctors.  It is certainly not for everyone - only those fed up with BS that is pumped at them. 

And your BS smells different. Just wait until they figure out you did all the “work” you’ll ever do in the first 2 weeks of the accounts existence and they move to Etrade to avoid your 50 bps for nada trails…

Can any of y'all show any correlation that performance is in any way linked to "personalized" portfolios or "customized" investment programs or that "tailored" approach.  

I don’t think the folks that run real money and people like Warren Buffett (let me guess, you’re not only more ethical than ‘ol <?:namespace prefix = st1 ns = "urn:schemas-microsoft-com:office:smarttags" />Warren, you’re smarter too) wouldn’t have a problem with doing that.  Good luck selling your “one size fits all” portfolio management with no consideration of the client’s goals, objectives or risk tolerance….

The only determining factor in performance is allocation and cost. 

And that’s why every large, smart pool of money is indexed.

No, wait, they aren’t. Back to the drawing board, Skippy….

 If you are concerned about risk, then make sure that you have a rational portfolio construction policy with rebalancing triggers that make sense.

Golly, is that what we should be doing? Will all my friend do it to? Say, could you explain where “rational portfolio construction policies” fit into a “one fit fits all” process?

Again - you fellas should say UNCLE becuase all you have left is insults and baseless marketing bullets for Ol' Lance!<?:namespace prefix = v ns = "urn:schemas-microsoft-com:vml" />  

You’re the one that started this by calling everyone else a fool and a crook and now you whine about getting a response. Go study for your Series 65….

Oh boy, here we go.  This is why I tend to stay off these boards.

[quote=Kargon]Oh boy, here we go.  This is why I tend to stay off these boards.[/quote]

Nah, don't sweat it. I've had all the fun I care to have with HRH Q.E..

I never said what you were doing was wrong; I may have implied it is baseless, conflicted, misguided and self-serving.  However I do respect you fellas.  Ya’ got a lot of parties to look after; Y’all got to feed your families, you got to keep your sales manager off your back, you need to keep your compliance department at bay - all the while keeping your clients happy.   No easy task!<?:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />

Can you honestly say that these different conflicting parties do not impact your judgment on what you communicate to your clients on any given day? Especially the last 3 production days of the month!

We have found that our approach provides our clients with market like returns at a very low cost.  Why would anyone expect to get better than a market like return?  If they are expecting that – then they are fools!  Again our approach is not for everyone.  However it does serve all interest at an optimal level.  

We have three model portfolios for our clients to use.  Each one is constructed the same and here is the average returns that they experienced in each. Here are the average net returns that our clients experienced after all fees and expenses                                                                                                                                                                                                                                                                                                    

             2003                  2004                 2005                 Bond Component %

Con     14.39%         8.91%        5.91%                          60%         

Mod    26.77%         12.17%         8.05%                      34%   

Agg     30.27%         13.44%         8.45%                      20%

S&P    28.73%         10.87%         4.93%                      ZERO

While we do not use the S&P as a benchmark I wanted to include it for y’all just to see how we did.  This year we have added an all equity portfolio and we do have aggregate results yes.

Do you have clients that have done better?  Of course you have! I do not doubt that!  

Do you have a program that has done better with the same risk?  Now that I would doubt!

My point is that our clients are getting market like returns with an acceptable level of risk and the certainty that the Treasury bonds offer. In other words we are delivering what we promise!  Low Cost, Acceptable Risk = Market Like Returns.  We help them select which level of risk is appropriate.  65% of our clients are in the moderate. Only 15% in the aggressive. 20% in the conservative.  Is this right? Is this wrong?  That is completely subjective.  I can tell you that it works for all parties!

Thank you for the opportunity to lay this out for y’all.  This whole string has sparked some new client communication pieces and exposed more myths for us to exploit!

Cheers

Lance

[quote=Lance Legstrong]

Can any of y'all show any correlation that performance is in any way linked to "personalized" portfolios or "customized" investment programs or that "tailored" approach.   All superficial meaningless marketing terms that have ZERO to do with performance.

[/quote]

My Mod portfolios, using a core/satelitte strategy averaged approx 2% better than your strick ETF allocation.  Keep in mind this is after their "too high" fees and commissions from their brokerage firms.  To the "average Joe" 2% may not sound like much, but we all know that 2% over the life of an investment portfolio is a big difference. 

[quote=exEJIR][quote=Lance Legstrong]

Can any of y'all show any correlation that performance is in any way linked to "personalized" portfolios or "customized" investment programs or that "tailored" approach.   All superficial meaningless marketing terms that have ZERO to do with performance.

[/quote]

My Mod portfolios, using a core/satelitte strategy averaged approx 2% better than your strick ETF allocation.  Keep in mind this is after their "too high" fees and commissions from their brokerage firms.  To the "average Joe" 2% may not sound like much, but we all know that 2% over the life of an investment portfolio is a big difference. 

[/quote]

It's true that your 2% improvement over HRH's performance means real money to the client, but you have to give HRH credit for delivering what was promised; cheaply run portfolios guaranteed to underperform the market.

I love it when two continue to bash each other in the head in a board where nothing really matters!  MikeButler loves to argue and is instantly going to take the opposite view of anyone else.  Lance has to stop repeating what he learned at the hiring seminar and monthly sales meetings.

Dear Mr. Client from the Carolina's area,

The foregoing is the exact reason you never want to take your business to a "Wirehouse" - ie Merri..  or  Morg.. or etc.  Those places are full of competitive maniacs that are constantly vying for each others clients by screaming at the tops of their lungs and privately sucking up to the Branch Manager so they "orphan" the offending nincompoops clients after they talk the Branch Manager into firing him.  Go to a nice, small, independent boutique firm in your area that has a good reputation that you've heard about from your associates and big dogs down at the club.  Compare 2 or 3 of them and see what you feel comfortable with.  Your daughter, which works at the firm, has been pressured to get your money in there.  I promise.

[quote=dogdooki]

Dear Mr. Client from the Carolina's area,

The foregoing is the exact reason you never want to take your business to a "Wirehouse" - ie Merri..  or  Morg.. or etc.  Those places are full of competitive maniacs that are constantly vying for each others clients by screaming at the tops of their lungs and privately sucking up to the Branch Manager so they "orphan" the offending nincompoops clients after they talk the Branch Manager into firing him.  Go to a nice, small, independent boutique firm in your area that has a good reputation that you've heard about from your associates and big dogs down at the club.  Compare 2 or 3 of them and see what you feel comfortable with.  Your daughter, which works at the firm, has been pressured to get your money in there.  I promise.

[/quote]

I've read some dumb things here, but the above is perhaps the dumbest. In my entire time in the biz I've never seen anything like what's claimed above happen, period.