How many of you manage your clients portfolios?
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How do you select securities yourself on an unsolicited basis? Do you mean non-discretionary? If you are recommending the securities, you are soliciting them.
I like you post, and have been doing something similar - however can you clarify the 3 standard deviations? Do you mean three strike prices, or do you actually calculate this (the standard deviation)?As for picking stocks use your companies focus list, use the non producing CFA’s work. That’s their job. With AGE I primarily use the DSIP list, a dividend strategy. When I get an email saying one is falling off the list like ACAS I’ll start writting 10%in the money calls and put in a stop in case it begins to really tank, to get rid of it. When one makes the list I’ll sell a put out at 3 standard deviations, less than 45 days (time value degredation is your friend) and wait to see if we get it or not, if not write another put until we do.
For the most part, I don’t manage my own portfolios. For me, it was as simple as realizing that I could either be good at building my book or be good at picking my own investments, but not both. I do some limited stock-picking, but clients know up front that for most money, I select managers with good track records and let them make the buy-sell decisions. At least with crappy markets like these, you can blame the manager (assuming they deserve it), fire them and maintain the relationship. If you’ve done your own management and underperformed, what decision does the client have except to fire YOU?
Are you talking about SMAs or mutual funds? I guess I just can’t stand not being ‘behind the wheel’ on investing (ecspecially when the manager does not want to go to cash or does not use option strategies for either income or hedging). But I’m not exactly recreating the wheel either - I use research.
Most SMAs that we offer don't have flexibility in making strategic asset allocation decisions based on factors in the market. That is why I prefer to use some good long/short mutual funds that have the flexibility to short or go to cash as the economy dictates. Mutal funds are far ahead of SMAs in this regard, I think. In the next few years we will probably see more flexible arrangements in SMAs.Are you talking about SMAs or mutual funds? I guess I just can’t stand not being ‘behind the wheel’ on investing (ecspecially when the manager does not want to go to cash or does not use option strategies for either income or hedging). But I’m not exactly recreating the wheel either - I use research.