Welcome to the 2nd edition of Pincus Perspectives, a quarterly newsletter that will provide updates on the market and our company. Our goal is to make this newsletter informative for our readers as it relates to both GA Pincus Funds and the economy as a whole. We LOVE referrals, so please feel free to forward this email along to your friends. Thanks for reading!
I would be remiss if I did not begin this newsletter by speaking about Britain's vote to leave the European Union. On June, 23, 2016 72% of the United Kingdom's population voted 52% to 48% in favor of leaving the EU. In my opinion this vote should have been handled by the elected representatives within the government as it would have been their duty to understand both sides of the argument before making an educated decision and casting their vote. Instead, the vote was given to the UK populous, and it is clear that the general public was not fully informed or educated on the ramifications of such a vote. However, ignorance is not an excuse. Two days after the vote the global markets lost $2.5 trillion of value, the Euro and Pound fell while the US Dollar and Yen soared. In the following three days, the global markets rebounded dramatically although the aforementioned currency movements held firm.
WithPincus Projections, users have the ability to analyze investments over time based on their individual risk tolerance. Want to see how you would have performed if you invested in 100% bonds since 2006? With Pincus Projections, we can do that! Curious about being more aggressive and starting in 2009? Pincus Projections can do that too!
If you're less concerned with the past and want real-time data from our current accounts, we've got you covered. With Pincus Performance, you can check out our daily, monthly, and annual performance across three of our different strategies!
*Please note, the data features are AWESOME, but they do not work on mobile devices or internet explorer*
**We will continue to enhance our website to support other browsers and devices**
Customer Appreciation Day - May 23rd, 2016
Monday, May 23, 2016 was the 1st annual GA Pincus Funds Customer Appreciation Day!
We sent each of our clients a personalized gift. Below are some pictures of our clients enjoying their rewards:
GA Pincus Funds Overview
GA Pincus Funds is a Texas Registered Investment Advisor that creates Separately Managed Accounts for our clients using an investment strategy comprised of three main tenets:
Active Management
Low Cost
Transparency
GA Pincus Funds Actively Manages all accounts; investing in Low Cost ETFs and no-load Mutual Funds; while allowing all investors Transparent 24/7 real-time access to their accounts.
Our longest running account, split 45% fixed income and 55% equities, has outperformed all but one of its benchmark indices since inception.
Net of all fees, this separately managed account has outperformed its benchmark ten out of the past twelve quarters, annually, and since inception
A Short Story About Gabriel
As a young child I was always very interested in numbers and math, but it was my grandmother, Lillian Hyman, my Bubby, who bought me my first shares of stock when I was about 6 years old. She introduced me to her stock broker who would teach me more about the stocks I owned. Before she passed away she was responsible for buying me shares in Dell, Oracle, Yahoo, Gap, and AOL. The obvious standout in this crowd is Gap, which she bought because GAP are my initials and have now become a part of my company's name. Even though the investments were always small, my Bubby instilled in me the desire to watch the stock market each and every day with genuine interest.
Fast forward 8 years, I had just graduated from Indiana University and got a job as an agency trader at Bear Stearns. I was responsible for executing equity and option transactions for large institutional firms and wealthy individuals. One such individual was James "Jim" Stenson. In his formative years he was a seat holder on the New York Stock Exchange. By the time I was working with him he was a septuagenarian who phoned in trading requests by the hundred. As I watched Jim increase his assets I began to better understand his trading strategy and why it was so successful.
From 2008, when I left Bear Stearns, until 2015 when I launched GA Pincus Funds to the public, I became an expert on Exchange Traded Funds and received my MBA in Finance from Vanderbilt University. I coupled my knowledge of ETFs and asset management with pieces of the trading strategy used by Jim Stenson to form the proprietary algorithm that I use for all accounts at GA Pincus Funds.
Thank you, Bubby, for opening my eyes to the stock market. And thank you Jim for helping me to develop my algorithm.
Stocks vs. Bonds; A Brief Historical Analysis
Historically speaking, stocks are riskier than bonds, and investors who take that risk and buy stocks are rewarded with better returns.
In the 20th century, stocks rose on average 9.89% per year while bonds rose 4.85% per year.
However, thus far, the 21st century has bucked the historical trend:
The BarCap US Aggregate Bond Index (Bond Market) is up on average 8.64% per year
The MSCI USA Index (US Stock Market) is up on average 2.31% per year
The MSCI World x US Index (International Stock Market) is up on average 0.11% per year
Pincus Projections, a brand new freedata feature on our website,gives you the ability to determine the effect of the aforementioned statistics on your portfolio.
