Investment Management

We are guided in managing your investments by these three central principles:
  • The findings of the Nobel Prize winning Modern Portfolio Theory
  • The tenets of the Theory of Efficient Markets
  • The provisions of the Uniform Prudent Investors Act

We believe that to find the best performing stocks, the investment with the highest return or the sure-thing corporate bond is a losing game. Many brokers and advisers draw you in with promises of high returns and great performance. They can't deliver! The overwhelming body of academic research shows that active managers, be they stock brokers, pension fund managers or investment bankers, don't do as well as the average of the entire stock market. Furthermore, the few who do outperform the market in any given year rarely do the same the next year. Trying to pick the best stock or best fund is NOT a strategy that works!

How about those who say they can generate great returns with careful decisions about when to buy or when to sell the investments they manage? These are the market timers. This has also been shown in study after study to be a management approach doomed to failure. Because the incredible speed with which information is disseminated these days and because of enforcement of the laws banning trading on inside information, everyone in the market has the same information about a given investment. And because everyone has the same information, no one can benefit from knowing just the right time to buy or sell. It's a loser's game (except if you're the broker making the commissions).

We do believe that the best way to achieve consistent returns from your investment portfolio is to manage the risk rather than try to achieve extraordinary returns. We try to find a portfolio that fits your risk profile along three axes - your need for risk, your willingness to accept risk and your ability to take risk. We spend a good deal of time helping you assess these measures. Furthermore, we can show you that a lower-risk portfolio can typically result in greater value than another with equal average returns. We seek diversification of your investments - knowing that some segment of the investment universe will be the winner this month and we want you to be there!1 We are constantly trying to keep your costs down. That includes your trading costs, management costs and tax costs. And we follow a disciplined and reasoned approach that seeks to keep your portfolio balanced. It's an approach that results in buying when prices are down and selling when prices are up - buying the losers and selling the winners - buying low and selling high. We'd love to show you how it works.

Though we can accommodate you with other compensation arrangements, our preference is to do business with you on a fee-only basis.2 That means we collect no commissions when you buy or sell securities and we have no incentive for you to trade. Rather, you pay a quarterly fee based on the size of your portfolio that covers all of your costs for management and for trading. Our only incentive is to see your portfolio grow.

Let us manage your investment portfolio. We believe our approach is one that can really help to achieve long-term growth.

This site is published for residents of the United States only. Raymond James' Financial Advisors may only conduct business with residents of the states for which they are properly registered. Therefore, a response to a request for information may be delayed. Please note that not all of the investments and services mentioned are available in every state. Investors outside of the United States are subject to securities and tax regulations within their applicable jurisdictions that are not addressed on this site. Contact your local Raymond James office for information and availability.

1. Of course, diversification does not assure a profit or protect against a loss in a declining market.

2. In a fee-based account clients pay a quarterly fee, based on the level of assets in the account, for the services of a financial advisor as part of an advisory relationship. In decidinf to pay a fee rather than commissions, clients should understand that the fee may be higher than a commission alternative during periods of lower trading. Advisory fees are in addition to the internal expenses charged by mutual funds and other investment company securities. To the extent that clients intend to hold these securities, the internal expenses should be included when evaluating the cost of a fee-based account. Clients should periodically re-evaluate whether the use of an asset-based fee continues to be appropriate in servicing their needs. A list of additional considerations, as well as the fee schedule, is available at the firm's Form ADV Part 2A as well as the client agreement.

3. Any opinions are those of Art Lustgarten and not necessarily those of RJFS or Raymond James.

4. Investing involves risk and investors may incur a profit or a loss.


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