Lennox Financial does not provide performance numbers for managed accounts the way mutual funds do because each account is managed on an individual basis according to the investment policies agreed upon with the client. Performance may vary widely due to different guidelines requested by the people we serve. All of our managed accounts had a positive return
in both 2000 & 2001.
One example of risk control was our success after the technology bubble popped. We are pleased to report that all of our accounts turned in positive performances during 2000 and 2001 when all the major stock indexes lost money. By trying to not lose money in down markets, and by trying to track the market as it goes up during rising periods (such as 2003 through 2007), we are able to provide an excellent cumulative return. Aggressive risk control does mean that we may experience short term underperformance when the markets are rising. (But hopefully the payoff comes when markets fall, such as during 2008 and 2009.) We do not subscribe to the "buy and hold" philosophy. Performance is due to a unique mix of asset allocation and risk management in an environment of dynamic supervision. While we have enjoyed long periods of outperforming the major stock indexes with most accounts, it must be pointed out that each client account is unique and may vary from the average, plus past performance does not provide any guarantee regarding future returns. Anticipated returns are discussed individually with each client or potential client.
Note: Do not confuse our conservative managed accounts with discussions about the Nomothetic Theorem found on links to this web site. The trading model that the Nomothetic Theorem uses includes hedge fund activities and investments such as options, futures, and short selling. This type of "All-Weather Investing" account is only available on an idividual basis to qualified individuals.