LEGEND® INVESTMENT MANAGEMENT SERVICES
FOR FINANCIAL ADVISORY FIRMS
Legend Financial Advisors, Inc.® (Legend®) is an SEC registered investment advisory firm based in Pittsburgh, PA. Legend® manages investable assets in excess of $200 million.
Legend® manages monies for advisors and their clients in two basic styles. They are as follows:
Lower Volatility Portfolios:
These portfolios are constructed with mutual funds that have a low correlation to each other thereby creating a significantly smoother pattern of return than other investment strategies that deliver similar returns. The large majority of the funds that are utilized are either institutional funds or funds that are managed by boutique-type firms where the managers are the firm owners. Many of the funds that we utilize are closed to advisors and the general public, but Legend® has unique arrangements to provide access to these funds. The goal of designing these portfolios is to provide long-term equity-like returns but with bond-like risk. In other words, they have very low standard deviations. By contrast, the S&P 500 has delivered a long term return of approximately 10% with a standard deviation of 20.
Individual Stock Management:
Legend® manages individual stock portfolios utilizing a quantitative approach to selecting stocks that is designed to minimize risk while maximizing return. Unlike many portfolio managers, we utilize an all cap approach to selecting stocks, equally-weighting them at the time of purchase, selecting stocks that have P/E ratios, Price-to-Cash Flow ratios and Price-to-Free Cash Flow ratios significantly lower than the current year following earnings growth rates. Stocks selected will also have rising sales, good margins, returns on equity exceed 12%, a history of positive earnings surprises and rising earnings estimates. At any point in time, there are generally 25 to 40 stocks in the portfolio.
Legend® provides their investment management through several custodians. In some cases, reporting is provided online by the custodian. In other cases, Legend® will provide reporting for an extra fee in addition to their investment management service fee. Depending upon the investment management service desired, fees range from .35% to .50% exclusive of reporting costs.
For additional information, please contact Lou Stanasolovich at (888) 236-5960.
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Let Legend Financial Advisors help you with fee-based management, financial planning, retirement consulting, risk management and estate plans. We are located in Pittsburgh, PA.