Sloan Investment Management, LLC

Proprietary Methodology—
Post-Modern Portfolio Management

Our investment strategy is best described as Post-Modern Portfolio Management (PMPM). The world of investing has changed, becoming more complex within an evolving global economy. Early on, we recognized investment strategies must change and transition to a more dynamic and tactical model. Technological innovations have made global information flow instantaneous, and markets react immediately. This has caused a major change in market dynamics by spawning a new breed of traders. These are high frequency traders, program traders, and most importantly the global hedge funds with $5 trillion in assets. These entities now dominate daily trading activity and in turn have increased market volatility.

PMPM also focuses on a market dynamic that has not changed but it is especially important. It is the emotional behavior of investors and their reaction to global volatility. We diligently monitor investors and their decision-making errors during periods of extreme volatility. Therein opportunities are created by assets being mispriced.

While short-term traders consider volatility as risk, PMPM rejects the notion that the two are synonymous. As long-term investors, we perceive risk as the probability of asset underperformance or the chance of permanent loss of capital.

The Foundation is Discipline
Many sound investment strategies have failed because they were executed without discipline. Discipline means that an intelligent, long-term strategy is not abandoned due to market volatility or because one segment of a portfolio is temporarily outperforming. The disciplined investor identifies and analyzes market trends but does not necessarily follow the crowd.

Our portfolio strategies are carefully designed to meet our clients’ goals in a variety of economic circumstances. Historically, our experience in both up and down markets reflects the value of this discipline.