CEO Report 02-24-09

CEO Report – 02-24-09                  

The markets nervously await President Obama’s appearance before Congress on Tuesday night.  Amidst conflicting theories about the short-term nationalization of banks, stress tests for ailing banks and mammoth deficits at Citibank and AIG, the markets are struggling to stabilize. 

Compiling these reports with political rhetoric has heightened the market fluctuations.  Less than ten days ago, Senator Chuck Schumer of New York resisted the idea of nationalization.  Five days later, Schumer held another press conference and reversed his stance referring to nationalization as the detoxification of ailing banks while promoting the possibility of short-term government takeover of institutions that fail Treasurer Secretary Geithner’s stress tests.  This political wavering does not help fluctuating market conditions. 

Amidst the chaos of the past ten days, Custodio Asset Management rallied slightly at week’s end to close the weekly loss to -2.238 % and bring the year-to-date growth to +1.807%.  The S & P 500 has not been as fortunate as year-to-date losses now stand at – 14.405%. 

CAM supports the Obama administration’s commitment to transparency and agrees the time for action has arrived.  While there are no quick-fix solutions for the global economy, the country’s economic direction and course of action must be set.

CAM continues to provide aggressive investment strategies to clients of the company.  If you or someone you know would like information about CAM services, please call 410-988-2511 or e-mail info@camtrading.com.

 

 

Stanford Strong In Antigua – Weak on Morals

Robert Allen Stanford – Strong in Antigua, Weak on Morals

Robert Allen Stanford has defrauded 50,000 customers and misrepresented his handling of billions of investor dollars.  Today, Stanford was taken into custody by the FBI while his Antiguan-based Stanford International Bank, the island’s largest employer, attempts to survive a run on cash withdrawals. 

In addition to Stanford, Chief Financial Officer James Davis and Chief Investment Officer, Laura Pendergast-Holt, of the Houston-based Stanford Financial Group have also been charged in yet another Madoff-styled Ponzi scheme.  The three Stanford defendants have had all personal assets frozen and a federal marshal has been appointed as receiver of these assets.

The Stanford International Bank Board consisted of family and friends including Stanford’s father, his college roommate (Davis) and Pendergast-Holt, who possessed no major investment experience prior to her appointment at the bank.  This group oversaw the management of billions of dollars. 

Like the Madoff disaster, the Stanford collapse will have far reaching global implications.  Recently, the Stanford group announced shock at the Madoff scandal and tried to distance itself from closer scrutiny.

The SEC has filed a host of complaints and has requested emergency relief for defrauded investors.  Meanwhile, more hard-earned money is gone, taken from honest investors.

Custodio Asset Management is well aware of the repercussions of this scandal and other Ponzi schemes.  Investors familiar with CAM’s operating practices are appreciative of the company’s highly transparent investment practices.  All questions regarding new or existing accounts are welcome at 410-988-2511 or at info@camtrading.com.

CAM and The Rydex Custodian

CAM and Rydex Investments

In the wake of the Madoff Scandal and the failure of major banking and investment firms, it is only natural that CAM clients want to know more about the company’s relationship with Rydex Investments, a mutual company and CAM custodian.

CAM clients have asked about the security of money invested with the company’s custodian.  Rydex is not a bank and does not have Collateralized Debt Obligations (CDO’s) or the Mortgage Derivates that led to so many bank failures.

Rydex was founded in 1993 and as of 10-31-08 managed more than $12 billion in assets through more than 100 mutual funds and exchange traded products.  At this point in time, no mutual fund company has failed.  Money invested in a mutual fund is not considered an asset of the general mutual fund company but rather an asset of the specific mutual fund in which the investment is made. 

The mutual fund company never owns the invested funds.  The CAM – Rydex agreement calls for Rydex to manage these assets for CAM.  If for some unforeseen reason, Rydex declared bankruptcy, the assets of the individual funds would not be available to the firm’s creditors.

Federal laws require Rydex and CAM to provide insurance that protects investors from instances of fraud and embezzlement.  CAM feels very secure with its long-term relationship with the rock-solid Rydex Investment fund and believes the continuance of this relationship is in the best interests of CAM clients for reasons of security and transparency.

CAM clients are welcome to visit the Rydex web site at http://www.rydexinvestments.com/index.shtml for further information about the CAM custodian, or clients may call 410-988-2511 or e-mail questions to info@camtrading.com.

 

 

 

CAM Posts Big Gain 02-12-09

CAM’s Chief Investment Strategist, Almond Custodio, continues to apply the age-old adage “if it ain’t broke, don’t fix it” to the CAM portfolio and the company’s expanding client base is liking the results.  The disciplined investment strategy in the major indices returned a stellar gain of  1.88% for the week ending Feb 13th.  Having achieved their goal for the week, CAM has captured the net of fees profit and gone to cash.

While the buy-and-hold market remains turbulent, Almond has consistently employed his proprietary strategy to increase client wealth.  New and existing clients could not be happier.  Unfortunately SEC regulations prohibit testimonials, but CAM is receiving rave reviews from exuberant clients.

Year-to-date gains now stand at +4.045% and CAM has produced +191.312% in a little over three years.  While the marketplace is uneasy, there remains opportunity for structured profits.  Over more than three years investing for CAM, the CIS is determined to continue the company’s tradition of excellence.

Please feel free to contact the company at 410-988-2511 or by e-mail at info@Camtrading.com.

 

 

CAM Reports New Client Growth

CAM Report 02-08-09

The American economic landscape is about to change.  Amidst an economy facing rising unemployment and confronting markets in financial unrest, Americans and the world anxiously await Washington’s next remedy.  In the wake of these developments, CAM continues to pursue a disciplined investment strategy that capitalizes on short-term movements within relevant indices.

As a result, Custodio Asset Management posted a gain of  +0.953 for the week ending 02-06-09, bringing the year-to-date gain to a healthy +2.123%.

In October 2005, when CAM officially began operations, the company had three investors.  Those investors have seen their investment portfolios grow by an astounding +185.93%.  In the wake of the volatile financial market performance in 2008, retail and institutional investors alike have taken notice of CAM’s continued investment growth.  In May of 2008, CAM’s client base consisted of 19 clients.

As the company approached its three year anniversary, new client enrollment began to escalate.  Enrollments were boosted by the company’s consistent gains.  In the following three months, enrollment almost doubled and our client base reached 37 in September 2008.

As markets crumbled, CAM maintained its transparent and disciplined strategy.  In 2008, the S&P 500 finished -38.486% while the Nasdaq100 fell -41.885%.  In this same time period, CAM gains stood at +23.986%.  By December 2008, 68 retail and institutional investors had opened new accounts with CAM. 

The momentum has not swayed.  Since January, eight more clients have opened new accounts bringing our current client base to 76.  This growth parallels our investment performance and has been gratifying.

As a side note, almost every retail client that considers opening an account with Custodio Asset Management, asks one question;  “How do you do it?  The numbers look too good to be true.”  This is an understandable but paradoxical question. 

Our growth reports are accurate and supported.  Our investment strategy works.  We are committed to complete transparency and a disciplined approach to investing.  We treat our clients with respect and our goal is that every client be grateful they chose CAM.  Our business practices will always reflect that goal.

If you have any questions about a new or existing account, please contact us at 410-988-2511 or by e-mail at info@camtrading.com.  We look forward to hearing from you.

 

Ace & Almond

Looking Ahead to 2009                                             info@camtrading.com

After capping off the first month in 2009, CAM’s portfolio results remain strong.  Custodio Asset Management continued its successful 2008 performance with a healthy +1.170% rise in January of this year.  While the overall market decline has hurt retail and institutional investors, CAM’s proprietary strategy continues to prosper.  The DOW and S&P 500 each dropped over eight percent in January.

In the midst of massive layoffs, rising prices, and failing companies, individuals and businesses throughout the world are tightening their belts in efforts to make the safest decisions for their money.  Recently, Merrill Lynch crossed the finish line–so to speak–when it was officially acquired by Bank of America.  A worldwide financial services firm, who also happens to be my former employer, is gone. Now, this former pillar of the industry is merely a subsidiary.  Anyone thinking the investment management world is business-as-usual simply needs to look at their 2008 statements.

It is not likely that everything will come crumbling down, but, as President Obama reminds us, times may get tougher before they get better.  Custodio Asset Management is here to help by being a reputable, transparent and disciplined steward to your investment capital.  Every investor knows 2008 was a turbulent year.  With CAM’s flexible investment capabilities, the company was able to post a +23.986% (net of fees) profit in ‘08 despite the economic uncertainty.  Our clients finished far ahead of the pack.

 
In this new year, we are back in the saddle working diligently to continue our success and make 2009 an even better year for our clients. 

To see how CAM can make a difference in your financial future, please feel free to call 410-988-2511 or send an e-mail info@camtrading.com to discuss your objectives. 

Sincerely,

Ace Custodio &  Almond Custodio