Investment Management Services & Firm Overview

Transcription

1 Investment Management Services & Firm Overview Bryan Bourgeois President/CEO Blue Pacific Wealth Management, Inc W. William Cannon Dr. B Austin, TX

2 CONTENTS About 3-4 Investment Philosophy 5-6 Portfolio Construction a. Baseline Parameters 7-8 b. Three Dimensional Approach 9-12 c. Investment Selection d. Strategic Acquisition 15 Investment Management Overview a. Strategic Portfolio Management 16 b. Tactical, Hedged & Opportunistic Portfolio Management c. Alternative Investments, Private Equity & Third-Party Specialty Managers 19 d. Customized Client Portfolio Types 20 Financial Planning 21 Contact 22 2

3 ABOUT Blue Pacific Wealth Management, Inc. (BPWM) Highlights: 1. The firm specializes in investment management and financial planning for US & international clients, offering personalized solutions for individuals, families, corporate and institutional entities. 2. As a Registered Investment Advisory firm, BPWM maintains a fiduciary and independent status, always acting in the best interest of the client. 3. The firm does not sell investment products and is not compensated by commission. 4. BPWM offers advisory services through its Registered Investment Advisor, Shorebreak Capital., LLC. Bryan J. Bourgeois is the principal of BPWM and Shorebreak Capital, LLC. 3

4 ABOUT 5. BPWM offers unique portfolio management strategies that are derived of the following: a. Macro-economic trends and capital flow analysis b. Proprietary algorithmic trading, modeling and trend-following systems c. Fundamental & valuation-based analysis d. Technical analysis e. Special situation & event-driven opportunity identification 6. Portfolio management strategies include strategic asset allocation portfolios and tactical, hedged and opportunistic investment strategies. 7. Alternative investments offerings include non-traded REITs, non-traded BDCs (secured loan/income funds), private equity, direct investments in commercial real estate and commercial mortgage REITs and access to third-party specialty money managers. 8. BPWM provides comprehensive financial planning and retirement income planning. 4

5 INVESTMENT PHILOSOPHY BPWM s investment philosophy is guided by the global, inter-connected and reflexive world that continues to evolve in its complexity and depth of information. With this, volatility, uncertainty, as well as opportunity, are also likely to be close companions. Finding a way to capitalize and make sense of this complexity and depth of information, in addition to identifying short, medium and long-term trends and/or opportunistic events, will likely be a formidable factor in determining the level of success that your savings and investments experience over your lifetime. The tools, strategies, analysis and trading programs developed and utilized by BPWM are specifically designed to navigate through such complexities, allowing to uncover unique opportunities while seeking to protect investors from a moderate or severe downturns in risk assets.* 5

6 INVESTMENT PHILOSOPHY Benefits of our investment philosophy: 1. BPWM provides actively managed and monitored portfolios to: a. Protect against mild and severe declines in risk assets, fixedincome, real estate and commodities. b. Identify medium-and long-term upward trends to capitalize on strongest risk assets. 2. BPWM provides expanded diversification, comprehensive access and recommendations for alternative investments, non-traded offerings, private equity funds and specialty third-party managers. 6

7 PORTFOLIO CONSTRUCTION Baseline Parameters: 1. BPWM strategically constructs and actively manages a diversified portfolio framework with a target of investing in distinct investments at a time. However, depending on market conditions, the number of investments can range from 0 (all cash) to 50 specific investment holdings, which is derived from analyzing approximately 125+ distinct markets and 125+ individual stock selections, including growth, dividend/value, small caps, foreign companies as well as REITs and preferred shares. 2. For short-term positions, the selected markets and/or areas of focus are underwritten to generate an expected upside of 8-30%+ within three to six month with a loss cut-off typically ranging from 1% to 15%. 3. For long-term positions, the expected hold period is through the full market cycle, typically 3-10 years, with a wider deviation metrics depending on positions risk level, and are underwritten to produce 8% to 15%+ averaged annualized return over the full market cycle. 4. Expected upside is targeted based on current information at the time of the investment, but not guaranteed. The portfolio s primary objective is to produce positive returns in both up and down markets while beating the relative benchmarks in any market, whether positive or negative.* 7

8 PORTFOLIO CONSTRUCTION Baseline Parameters: 4. The portfolio can hold a significant amount of cash in certain times of perceived risk and may invest heavily in one or two investment themes that demonstrate an asymmetrical upside opportunity with minimal or capped downside risk. 5. Factors determining relative size and time horizon include potential upside potential, conviction level, downside risk, volatility, volume, technical analysis and fundamental analysis. 8

9 PORTFOLIO CONSTRUCTION Three Dimensional Approach: Overview Trend Analysis, Fundamental Analysis & Technical Analysis Macro-Economic Analysis, Global Capital Flow Analysis & Opportunity Identification Individual Security Level Credit, Valuation & Growth Analysis 9

10 PORTFOLIO CONSTRUCTION Three Dimensional Approach: Macro-Economic Analysis 1. Global Capital Flows 2. US & Global Economic Growth & Leading Economic Indicators Analysis 3. US & Global Economic Recession Indicators & Analysis 4. US & Global Monetary & Fiscal Policy 5. Developed and Emerging Market Country Analysis 6. Political and Geo-Political Analysis 7. Secular Trends, Demographic Shifts & Disruptive Technologies 8. Trade, Carry-Trade, Currency Arbitrage and Exchange Rate Analysis 9. Sector and Sub-Sector Capital In-Flows and Out-Flows 10

11 PORTFOLIO CONSTRUCTION Three Dimensional Approach: Trend Analysis, Fundamental Analysis & Technical Trend Analysis 1. Macro Valuation Analysis 2. Macro Earnings Ratio Analysis 3. Monthly, Weekly, Daily Support & Resistance Levels 4. Relative Strength Analysis 5. Volatility Analysis 6. Regression Analysis 11

12 PORTFOLIO CONSTRUCTION Three Dimensional Approach: Individual Security Level Credit, Valuation & Growth Analysis: 1. Valuation & Quarterly Earnings Growth Analysis, Identifying Companies With Highest Averaged 5-Year Annualized Earnings Growth 2. New Feature, Benefit or Occurrence Identification & Assessment (e.g., Product, Innovation, Service, New Management, Stock Reached a New High, Merger, Acquisition, Etc.) 3. Identify Increasing Demand Metrics With Limited Supply 4. Sector or Industry Leader Identification 12

13 PORTFOLIO CONSTRUCTION Three Dimensional Approach: Individual Security Level Credit, Valuation & Growth Analysis - Continued: 6. Ownership from Top-Performing Institutional Buyers with Extensive Capacity For Additional Institutional Ownership 7. Stock Price, Market Capitalization, Price to Earnings, Price to Earnings Growth, Price to Book Ratio Analysis 8. Management & Stewardship Analysis 9. Debt Ratios, Capital Structure of Debt and Equity Securities and Loans, Term Details, FFO, AFFO, Free Cash Flow & Collateralized Equity Analysis 10. Technical Indicators, Short-and Long-Term Price Patterns & Volume Analysis 13

14 PORTFOLIO CONSTRUCTION Investment Selection: Summary of Portfolio Construction Break-Down by Asset Class / Sector 1. Global Macro View 2. US Equity a. US Sector b. US Sub-Sector c. Individual Security d. Alternative Investments, Private Equity 3. International Equity a. European Equity b. Global Developed Equity c. Global Emerging Market Equity d. Latin American Emerging Market Equity e. Global Sub-Sector Equity 4. Commodities 5. Currencies 6. US & Global Sovereign, Corporate and Municipal Bonds & Fixed Income 14

15 PORTFOLIO CONSTRUCTION INVESTMENT SELECTION GLOBAL MACRO LEVEL Strongest US & Global Markets Strongest Sectors Strongest Sub-Sectors Strongest Stocks in Strongest Sectors 15

16 PORTFOLIO CONSTRUCTION Strategic Acquisition: Overview 1. Highest Relative Strength 2. Rotation to New Highest Relative Strength 3. Confirmed Up-Trend with Low Volatility 4. Break-Out of Established Resistance 5. Consolidation Break-Out from Narrowing Resistance & Support Triangle (Long / Short) 6. Buy w/ Stop Loss at Established Support 7. Break-Out Above Resistance & 75 Day EMA After 20+ Decline 8. Event-Driven / Special Situation 9. Volatility-Adjusted Position Sizing 10. Relative Strength Analysis 11. VaR(Value at Risk) and CVaR(Conditional Value at Risk) Analysis 12. Asymmetrical Risk-Adjusted Return Ratio Analysis 13. Beta, Upside-Beta & Downside Beta Analysis 16

17 STRATEGIC PORTFOLIO MANAGEMENT 1. The Shorebreak Capital Strategic Portfolio Management Program is a strategic asset allocation managed account focused on investing in US and international equities, fixed income, commodities (through ETFs), other traded securities and cash. 2. This portfolio allows to capture certain asset allocations suitable to meet client s investment objectives. 3. This portfolio is actively monitored and re-asset allocations are implemented as needed to adjust to the macro-economic conditions and rotations in the financial markets. The portfolio is reviewed for re-balancing and re-asset allocation usually on a daily to weekly basis, but not less than monthly. 4. The portfolio maintains a certain amount of diversify among asset classes, but in certain times, concentration in certain asset classes may be justified. In times of perceived risk, the portfolio may hold a considerable amount of cash or cash equivalents. The client selects the management approach desired upon initiation of the account and may change the approach with written notice to the Advisor. 5. Securities in the Shorebreak Capital Strategic Portfolio Management Program primarily include ETFs and mutual funds, but may also include, but are not limited to: Individual Stocks, Preferred Shares, Bonds and Closed-End Funds. 17

18 TACTICAL, HEDGED & OPPORTUNISTIC PORTFOLIO MANAGEMENT 1. Shorebreak s Tactical, Hedged & Opportunistic Portfolio Management Program( Program ) is an unconstrained, predominantly long-only, highly liquid, low-frequency trading program with an investment objective that seeks asymmetrical trading opportunities in order to deliver outperformance relative to traditional equity benchmark indices. The Program is predicated on clearly articulated, dynamic investment themes based on macroeconomic analysis, capital markets assessments, and fund flows evaluation. These investment themes are implemented primarily through exposures to ETFs and customized baskets of securities. 2. In developing the investment themes, the investment manager employs a three-dimensional methodology that comprises: (i) macroeconomic analysis, (ii) capital markets appraisals, and (iii) fund flows evaluations. Once a theme is approved, Shorebreak identifies and analyzes applicable combinations of risk exposures to geographic regions, asset classes, markets, submarket sectors, and instruments that together constitute the risk of the investment theme in the Program. 3. The Tactical, Hedged & Opportunistic Portfolio Management Program account is an actively managed account focused on investing in US and international equities, fixed income, commodities (through ETFs), other traded securities and cash. 4. This portfolio allows to capture multiple macro-economic, sector/asset-class and company specific opportunities through equities, options, bonds and commodities, as well as hedge against drawdowns in certain asset classes, including equities, bonds and commodities. 18

19 TACTICAL, HEDGED & OPPORTUNISTIC PORTFOLIO MANAGEMENT 5. This portfolio is actively managed and monitored. The portfolio is reviewed for re-balancing and reasset allocation usually on a daily basis, but not less than weekly. 6. The portfolio at times may be narrowly focused and not well diversified. In times of perceived risk, the portfolio may hold a considerable amount of cash or cash equivalents. This portfolio strategy may also take short positions or inverse positions through inverse ETFs in equities, bonds and commodities, with the attempt to profit from a downturn in such asset classes. The client selects the management approach desired upon initiation of the account and may change the approach with written notice to the Advisor. 7. Securities in the Tactical, Hedged & Opportunistic Portfolio Management Program accounts may include, but are not limited to: Individual Stocks, Preferred Shares, Bonds, ETFs, Inverse ETFs, ETNs, Mutual Funds, Options, Fixed Income Products, Direct Private Placements, Closed-End Funds and Managed Future Funds. 8. Performance fees are applicable for qualified clients if qualified client decides to utilize this strategy. 9. Common portfolio objectives for this portfolio include, but are not limited to, Moderate Growth and Aggressive Growth with a risk profile from above average to speculation. 19

20 ALTERNATIVE INVESTMENTS, PRIVATE EQUITY & SPECIALTY THIRD-PARTY MANAGERS BPWM provides access and recommendations for: 1. Value-Add & Opportunistic Non-Traded / Non-Listed REITs for Capital Appreciation 2. Income & Conservative Growth Non-Traded / Non-Listed REITs for Income and Growth 3. Secured Loans Funds, also called BDCs (Business Development Companies) for Income 4. Non-Traded / Non-Listed Mortgage REITs and Commercial Real Estate Loans for Income 5. Private Equity for Income, Growth and Non-Correlated Returns 6. Specialty Third-Party Managers for Enhanced Diversification, to Capture Unique Opportunities and Provide Non-Correlated Returns 20

21 COMSTOMIZED CLIENT PORTFOLIO TYPES Relative Return Absolute Return High Beta Low Volatility Growth Focused Income Focused Aggressive Conservative Maximized Capital Appreciation Minimized Capital Drawdown 21

22 FINANCIAL PLANNING 1. BPWN can help you construct and monitor your financial plan 2. Create a consolidated net worth statement and financial planning reports in MoneyGuidePro. 3. Determine your goals, risk level and concerns. 4. Generate current wealth accumulation and distribution scenario based on current data/assumptions 5. Generate current wealth accumulation and distribution scenario based on current data/assumptions 6. Provide financial planning, estate planning and asset allocation recommendations 22

23 PRIMARY CUSTODIANS & REPORTING 1. Scottrade Advisory Services (merging with TD Institutional Q3 2017). 2. Fidelity Institutional 3. Interactive Brokers 4. Betterment Institutional 5. First Trust Retirement 6. MoneyGuidePro 23

24 CONTACT Please contact Bryan for offering documents requests or investment inquiries: Bryan Bourgeois President/CEO Blue Pacific Wealth Management, Inc W. William Cannon Dr. B Austin, TX *Important legal information: This material is intended to be of general interest only and should not be construed as individual investment advice or a recommendation or solicitation to buy, sell or hold any security or to adopt any investment strategy. It does not constitute legal or tax advice. The views expressed are those of the investment manager and the comments, opinions and analysis are rendered as at publication or presentation date and may change without notice. The information provided in this material is a summary of investment themes and is not intended as a complete analysis or thesis of an investment management strategy and should not be adopted as such. Investments in securities are not suitable for all investors. Investment in any security may involve a high degree of risk and investors should review all "Risk Factors" before investing. Investors should perform their own due diligence before considering any investment. Past performance and/or forward looking statements are never an assurance of future results. Investments and investment-related products are not FDIC Insured, Not Bank Guaranteed, Not Insured by any Federal Government Agency and May Lose Value, including the loss of principal. While the investment manager makes all efforts to produce desired portfolio objectives, there are no guarantees that the portfolio objectives will be met. Bryan Bourgeois offers advisory services through Shorebreak Capital, LLC, a Registered Investment Advisor. Bryan Bourgeois is Principal of Shorebreak Capital, LLC. Please be advised Shorebreak Capital or any of its affiliates or subsidiaries cannot guarantee trading instructions or accuracy thereof if received by or voic . For assistance with trades, please call our office or contact Scottrade Advisor if we are unavailable. 24