CAM Posts Big Profits

CAM Posts Big Profits

Ace Custodio, CAM CEO, reports significant gains since the company’s 10-24-08 close.  Year-to-Date gains now exceed +11%.  Since 10-05-08, CAM’s opening, client portfolio gains now surpass the +151% mark. 

Mr. Custodio states that new investor subscriptions have increased dramatically.  There is much support for the wealth management protection and investment strategy implemented by CIS, Almond Custodio.  The recent market turbulence highlights the risk of “buy and hold” stratgeies.  Clients who seek a more pro-active, lower risk investment management company may contact an account manager at info@camtrading.com.  

 

 

CEO Report 10-28-08

CEO Report 10-28-08

CAM’s CEO, Ace Custodio, reports a modest loss for the week ending 10-24-08.  Earnings fell by 2.529% and the CAM 2008 year-to-date gains now stand at +5.664% net of fees.  CAM clients continue to declare their satisfaction with the company’s investment strategy and in the wake of the major indices -40% year-to-date losses have referred new investors at a gratifying rate.  New client accounts continue to rise.

Since inception in October 2005, CAM’s portfolio growth stands at a robust +138.614%.  During this same period, the S&P 500 reflects losses of -28.649% and the Nasdaq100 stands at -24.936%.

CAM’s leadership team remains committed to answering all client questions and is pleased with the company’s support efforts.  Customer relations, accessibility and transparency earn high marks from CAM clients.

New and current clients can reach an account manager by phone at 410-988-2511 or by e-mail at info@camtrading.com.  All queries are welcome.

 

CIS Report 10-22-08

Message from the CIS

On September 26, 2008, I mentioned the Volatility Index.  At that point the VIX was trading at 35 which marked the highest levels since the last bear market in 2002.  Three weeks later, the VIX hit an all-time high of 81.17 on 10/16/08.  On that same day, the S&P 500 closed at 946.43.  Three weeks filled with Congressional action, capital infusion, global rate cuts and the Fed purchasing stakes in banks, failed to boost market confidence as our markets remain 22% lower.

There is a loss of confidence in the markets in recent weeks.  The daily volatility compares to rates during the Great Depression.  And, this is undeniably a global crisis.  The Nikkei lost 33% in one week, the Bovespa Index of Brazil is down 30% in one month and the UK FTSE 100 has lost 23% in one month.

Given this uncertainty, CAM has maintained a disciplined investment strategy.  Just as volatility can work in the CAM investor’s favor, it can also be detrimental.  At CAM, we seek consistency and wealth preservation.  As the markets are now trading 5-10 times normal volatility, CAM has reduced its invested exposure.  CAM clients can feel secure that the company is not subscribing to buy and hold strategies.  In these turbulent times, CAM is standing by its proven strategy of portfolio growth.

CEO Report – 10-17-08

CEO Report 10-17-08 

Ace Custodio, CAM CEO, reports modest portfolio growth for the week ending 10-17-08.  The company sustained its momentum and realized a +1.06% gain for the week bringing the year-to-date gain to +8.193% for 2008.  At the same time, the DOW is -33%, while the S&P 500 loss is at -35.946% and the Nasdaq shows losses of -37.086%.

Since inception, three years ago, the CAM portfolio now stands at +144.325%. 

As the credit markets prepare to unwind, CAM is cautiously seeking positive investment venues.

 

 

 

 

 

 

 

CEO Report 10-13-08

CEO Report 10-13-08                 www.camtrading.com

Ace Custodio, CEO of Custodio Asset Management, reports that as of 10-10-08, the S&P 500 index reported losses of -38.760%, while the Nasdaq 100 index stood at -39.096% and the DOW index showed losses of -36.289%. 

In this turbulent environment and strained credit market, CAM posted a very modest weekly gain of 0.814% bringing the year-to-date gain to +7.133%.  Since inception three years ago, the CAM portfolio has increased +141.929%.

As investors seek to diversify their investment strategy, CAM’s new client enrollment has shown a dramatic increase in both individual and institutional growth.  New investors are encouraged to contact info@camtrading.com.

 

 

 

 

Self-directed 401(k) Plans

How self-directed retirement plans benefit the institutions and not the participating investors.

By Almond Custodio, CIS                           info@www.camtrading.com

New CAM clients report extreme frustration with their self-directed 401(k) investment plans.  In these turbulent times, investors are paying more attention to the bottom line, where it becomes clear to most that self-directed 401(k) plans serve to the primary benefit of the provider, not the individual investor.  This realization supports the proactive CAM investment strategy, but surprises and angers many investors who have previously had accounts at large investment firms only to see their portfolios diminish by 30 – 40% year-to-date.                                                                                                                           

At large investment firms, self-directed 401(k) plans are subject to substantial service fees even though the participant does the actual work.  For example, in a typical 401(k), the employee selects from 10-15 funds offered by the provider.  The employee determines the allocation of these funds and moves money accordingly.  This is nothing more than an induced buy-and-hold strategy, which strategy has crumbled in the wake of the current market turbulence.  The provider charges a fee to assist investors who may want to customize their portfolio.  Otherwise, the provider does not offer technical or fundamental assistance to help the participants.  401(k)s and other self-directed retirement plans are a no risk, all gain situation for large investment firms.

Usually the funds within these plans are merely a mirror image of market performance.  A “Large-Cap Mutual Fund” is nothing more than a reflection of the DOW 30, which is down about 40% for the year and near the 1998 levels.  With little oversight and less supervision, these important retirement funds have diminished so significantly that many individuals who thought they would be retiring will now be hoping their jobs are secure.  Meanwhile, the fees tightly wrapped in the fine print of the prospectus are still being charged.

In addition to these individual participation fees, the provider usually charges additional fees to the contributing business.  This service fee is especially offensive because the participants are still managing their funds.  The service fee includes sending a statement, invoicing the business and sending out a coffee mug every now and then.  In most cases, that is the total effort exerted by the provider.

Meanwhile, the providers write stringent rules that govern 401(k) plans.  High penalty fees are charged if the fund is moved.  Those penalties apply to the business and to the participants.  Individual investors have been trapped as their savings diminish. 

CAM believes lawmakers need to act to relieve the participants so they can move their funds without penalty.  Meanwhile, investors who subscribe to “buy-and-hold” need to check their portfolios and realize this is not a viable 21^st century strategy.

Self-directed plans have minimal benefits.  They present tax-deferred status, but there are many ways to accomplish this end result.  401(k) plans also present the maximum yearly contribution to qualify for deferred status, and there is the appeal with the employer contribution.  However, in an effort to reflect growth, most providers choose to show the employer contribution as a portfolio gain. 

Frustrated investors with large investment firms are not only impressed with the 144 % growth rate that the CAM has achieved in its first three years, but they are complimentary about the easy access to account managers and the straight-forward transparency of their accounts.  All CAM income is directly connected to performance.  New client enrollment is at record levels and interest in the company is at its highest peak in the three years the company has operated.

 www.Camtrading.com

New Client Surge

CAM’s Successful Investment Strategy Attracting Clients

On October 7, 2008, CAM celebrated its third anniversary.  Investors who started with CAM on that day and who have continued to use the CAM investment strategy for the past three years have seen their original investment grow by more than 140%.  On 10-08-07, the DOW reached its highest level in history with the industrial index above 14,000.  On 10-08-08 the Dow industrial index closed just above 9,200, losing 5000 points in 9 one year.

Recently, CAM has enrolled an unusually high number of new clients who are converting all or portions of their portfolio to the CAM investment plan.  Many of these investors are awed by CAM’s results, even though these results are third-party audited by TimerTrac and exist in a completely transparent environment.

The CAM investment strategy is based upon strategic pro-active investing.  This program has succeeded in the past and will continue to succeed in the future.  The traditional large investment banks are still promoting diversification through long-term buy and hold strategies.  While this strategy does serve to build the client’s need for the banks, the fact remains that U.S. retirement accounts have lost over 2 trillion dollars in the past 15 months.

Traditional buy and hold diversification may have prevented this wealth from completely disappearing, but the reality is these funds are exposed almost 100% of the time.  In today’s turbulent marketplace, the buy and hold strategy is not safe.

For example, if an investor put $100,000 in the beginning of the year into a conservative buy and hold investment diversification program with $50,000 in equities, $25,000 in bonds and $25,000 in cash, that portfolio would produce the following results.  The $50,000 in equities would now be worth $34,000 (-32% YTD), the bonds would be worth $24,558 (-1.77% YTD Total Bond Market Index), and $25,000 cash would reflect no change.  The $100,000 would now have a value of $83,558 or a change in value of -16.442%.

This is a best case scenario.  For the investor to remain with this strategy and break-even, the market must change favorably by +47.05%.  Likewise, if the original principal amount lost 50%, the market would have to post a 100% gain to recoup the losses.  In the traditional buy and hold strategy, this result may be achieved over the course of several decades.  As the market approaches the 50% loss mark, Main Street investors realize that their portfolios have lost these amounts in a matter of months.

New CAM investors are well aware of the need for a change in their investment strategy.  These clients rightfully report frustration at the level of losses, the poor communication and lack of transparency provided by bigger investment banks.

Clearly there are opportunities to reverse these trends.  Today’s correct strategy is based upon CAM’s strategic exposure of assets to market fluctuations. 

CAM welcomes all queries regarding its strategy, transparency and performance.  Please direct inquiries to 410-988-2511 or info@camtrading.com.

CEO Report 10-07-08

 CEO Report – 10-06-08                   info@camtrading.com

The past few weeks have seen tumultuous market swings on all fronts.  CAM managers continue to work closely with all investors who report satisfaction with the company’s transparency, strategy and communication.  Based upon the Congressional hearings on Monday 10-06-08, transparency and accurate reporting by large investment firms have been less than straight forward.  CAM’s clients report relief at being removed from the big investment house mentality and working with CAM, where results determine earnings.

In an effort to further clarify the CAM – Rydex Investments relationship, Ace Custodio, CAM’s CEO, provides the following information.  “For dynamic and inverse funds traded with Rydex Investments, CAM can only trade by 10:30 AM and by 3:55 PM.  The benefit is that CAM cannot participate in the sell-off or rally psychology.  For example, the Dow plunged 800 points during the day on Monday 10-06-08, and then rebounded 500 points to close -369.  For anyone who has an unlimited time frame to trade, it is very daunting to not sell during the 800 point bottom.  The time limit set by Rydex prevents premature selling at the bottom or buying near the peak of the trends and has worked well for CAM’s disciplined investment strategy over the past three years as the company has posted gains of +140.092%.”

Despite the most recent economic downturn, CAM’s Year-to-Date investment portfolio is +6.310% net of all fees.  During this same period the Dow is – 24.948%, the S&P 500 closed at -28.02% while the Nasdaq-100 closed at -32.310%.

Since October 2005, the CAM portfolio reports investment earnings of +140.092%, net of fees.  During the same time frame, the S&P 500 is down -13.994%, the Nasdaq is down -11.886% and the Dow is down 661 points.

 

 

 

 

 

 

Mark-to-market 10-03-08

Question about mark-to-market accounting

In response to the extensive and often confusing media coverage, many CAM investors have been inquiring about the relevance of “mark to market” valuations in today’s turbulent market place.

Mark-to-market is defined as the act of recording the price or value of a security, portfolio or account to reflect its current value rather than its book value.  In terms of mutual funds, mark-to-market occurs when the Net Asset Value (NAV) of the fund is valued at the most current market value.  A practical example is the purchase of 100 shares of stock at $10.00 each.  The value of the purchase is $1,000.00.  If the stock decreases to $5.00, the mark-to-market is $500.00.  If the stock increased to $15.00, the mark-to-market would be $1500.00. 

This same accounting principle is also applied to mortgages.  If a real estate mortgage was initiated for the full purchase price of $100,000.00 in 2006, and it was accompanied by an appraisal for that amount, the market value of that mortgage was $100,000.00.  Unfortunately with the recent decline in real estate values, that property may today be worth 6 cents on the dollar of the original purchase price.  Even if that mortgage is being paid and is current, when the mark-to-market standard is applied to the mortgage, the new value of the mortgage would be $60,000.00 at best.  These markdowns in mortgage valuations have devastated the balance sheets of lending institutions.

The debate before Congress is ongoing.  Many Congressional leaders want to suspend mark-to-market accounting altogether.  This would give lenders more leeway in valuing mortgage securities. 

Accounting purists believe that changing traditional accounting procedures is misleading and encourages lenders to falsify their values.  At a time when more regulation for lenders is a popular theme, giving lenders more discretionary power is a contrary position.  At a time when more transparency in markets is needed, it is difficult to find support for this accounting change.

One of the biggest complaints about the large lending institutions is the lack of transparency.  If mark-to-market accounting is altered that transparency might well be further compromised.

At CAM, our portfolio has increased by more than 150% since we opened the doors three years ago.  We take great pride in our disciplined and transparent investment strategy. 

Every day, CNBC asks a resounding question, “Do you know where your money is?”  CAM customers always know where their money is.  As one of the few registered investment firms that publicly generates profile growth on a weekly basis, CAM clients know their portfolio strength every minute of every day.