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Way Points Newsletter 2Q12
Way Points Newsletter 2Q12
Way Points Newsletter 2Q12
Way Points
News In Brief
Portfolio Statistics as of 6/30/12:
35 Equity positions 14% International equities Core portfolio average holding period 2-3 years
Performance Summary
Blue Point seeks equity-oriented growth at a reasonable price with a global perspective. During the second quarter Blue Point, which is based on a model portfolio applied to separately managed accounts, returned -5.75% after advisory fee. The Total Return of the S&P 500 during the second quarter was -2.75%. Blue Point underperformed the Total Return of the S&P 500 by -3.00% during the second quarter. The Blue Point portfolio saw gains in technology, healthcare and consumer discretionary companies, while share price declines in manufacturing, finance, software and oil companies negatively impacted the portfolio. Year-to-date the Blue Point portfolio has outperformed the Total Return of the S&P 500 by 6 basis points after advisory fee. The Total Return of the S&P 500 year-to-date is 9.49%
Total Return on $100,000
$170,000 $160,000 $150,000 $140,000 $130,000 $120,000 $110,000 $100,000 $90,000 $80,000 $70,000 $60,000 $50,000 2006 S&P 500 TR $108,122 Blue Point $148,460
Blue Point versus the Total Return of the S&P 500 Index
Since inception 12/31/06 Blue Point outperformed the Total Return of the S&P 500 Index by 48.46% after advisory fee. On a $100,000 investment the dollar value of Blue Point's cumulative outperformance relative to the Total Return of the S&P 500 is $40,338. See graph for performance detail.
1Q07
2Q07 3Q07
2007
1Q08
2Q08
2009 1Q10
Disclosures: Performance of the separate accounts can differ substantially from the actual performance of Blue Point, the model portfolio, due to timing of entry, whether account is taxable or non-taxable, and the timing of withdrawals. Past performance does not guarantee future results. The management fee schedule is as follows: 1.2% on first $1 million, 1.0% on the next $3 million, 0.85% on next $5 million. Accounts under $0.5 million are 1.5% annually. Depending on circumstance, institutional fee schedules may be negotiated. Blue Point Investment Management, LLC, is a Maryland registered investment advisor, founded in 2006. To receive a copy of the firm's Form ADV Part II, contact us at 443-600-8050.
Market Outlook
Slow But Steady The U.S. continues to experience the first manufacturing led recovery in over two decades. The surprising resilience of the U.S. consumer has softened of late but the fundamental trends in the U.S. are still positive. European Wild Card The severity of the European debt crisis is forcing European companies to move cash balances into dollars as they seek to hedge uncertainty. The capital flight has driven 10-year Treasury well beyond the lowest yield recorded in 1946. Equities Favored Asset Class As confidence wanes regarding global economic growth, equities may not feel like the favored asset class but they offer a claim on the earnings of real assets. The S&P 500 earnings yield is the highest it has been in a quarter century. Low Growth Creates a Cost Focus In the absence of revenue and wage growth, companies and consumers are very cost sensitive. This creates demand for low price leaders, software and automation. This, in turn, is enhancing U.S. competitiveness. Emerging Markets Stresses in the developed world have impacted export demand in emerging markets as incremental steps are taken to create internal demand. Energy and Natural Resources Selective opportunities exist as supply and demand dynamics change.
Way Points
Blue Point's five year performance
Blue Point (after advisory fees) S&P 500 Total Return* Performance vs. Benchmark 2007 22.33% 5.49% 16.84% 2008 -29.73% -37.00% 7.27% 2009 42.92% 26.46% 16.45% while actively managing the downside risk. Under normal circumstances, Blue Point invests at least 60% of its net assets in domestic U.S. securities. This global approach offers significant investment
A Global Perspective
Blue Point Investment Management offers equity-oriented growth with a global perspective. The investment discipline seeks Growth at a Reasonable Price. Each client account is managed separately. The Growth At a Reasonable Price (GARP) investment strategy is a blend of active growth and value investing. As a rule, value investors focus on the price of the security, the numerator of the P/E ratio, while growth investors focus on earnings offered by the security, the denominator of the P/E ratio. GARP represents a blended approach and is often referred to as a market-oriented investment strategy. Through macro-economic research sustainable long-term trends are identified. Then fundamental research is used to identify the best companies that stand to benefit from favorable trends. Investments are geared towards long-term value creation while preserving capital. Blue Point seeks equity-oriented growth 2010 17.28% 15.06% 2.22% 2011 -5.35% 2.11% -7.46%
*Total Return includes the reinvestment of dividends
Client Profile
Individuals/Institutional (100%) Individuals Institutional Total Count % 94% 6% 100% Dollar % 87% 13% 100%
opportunities here and abroad. In times of market crisis, adjustments to portfolio holdings will be made that best serve the preservation of capital while seizing investment opportunities. Each separately managed account stays in the clients name providing complete transparency. Blue Point receives no commissions or compensation that create conflicts of interest. To further ensure the alignment interests Blue Points portfolio manager invests in the same model portfolio as clients. Blue Point seeks equity-oriented growth with a global perspective, while offering a portfolio manager you know and trust.