– Assets under management up 37% in 2013
– Over-weighting stocks during 2013 paid off
– Outlook 2014 presentation at Hodges University on January 7th & 8th at 7:30am
Thank you to our new and legacy clients – Assets under our responsibility up 37% in 2013!
2013 has been a year of strong growth for our firm completing its 4th year in existence. We now serve over fifty clients and the assets under management are close to $48 million. Our focus remains providing personalized investment management and financial concierge services to clients with less than $5 million portfolios, a segment of the investment market we believe is under served and over charged.
Some of the investment successes of 2013 include being generally over-weighted in stocks at the end of 2012 as the “fiscal cliff” approached. Investors feared the worst and sold off stocks which created an ideal buying opportunity. My bullish comments were captured in a Naples Daily News article, as the end of the Bush tax cuts were threatened, barring a last minute deal which led to stocks opening up significantly at the New Year in 2013.
Within our equity holdings, the strategy of including companies that “do good” worked out very well. Our top two holdings, Helmerich and Payne (HP $84) and Gilead Sciences (GILD $75) significantly outperformed the SP500 while also being good corporate citizens. Helmerich is considered the technology leader in the drilling for oil and gas, while Gilead recently received FDA approval on a new revolutionary Hepatitis C medicine.
As 2013 comes to close, clients have been blessed with strong equity returns with many accounts matching or exceeding the SP500 which has risen by 29%. Also noteworthy was avoiding high quality long term bonds and gold, both of which were once havens for fearful investors, but were big losers in 2013. Our strategy of favoring “medium quality” bonds with attractive yields and shorter term maturities avoided the significant portion of losses in the bond market.
Outlook 2014 at Hodges University
I will be presenting with Dr. Aysegul Timur, Professor of Economics at Hodges University, Outlook 2014 on January 7th (Fort Myers) and 8th (Naples). Dr. Timur will cover regional economic trends, while I will focus on macro-economic and financial market issues. The events are scheduled for 7:30am at both locations and if you are invested in attending, just let us know.
In closing, on behalf of Jennifer and Diana, we want to thank you for your business in 2013 and look forward to navigating the financial markets in 2014.
Information sources used to prepare this report include Argus Research, Value Line Investment Survey, Zacks, Barron’s, Kiplinger’s, Fidelity, and Decision Economics. Founded in 2010, Andrew Hill Investment Advisors, Inc. is registered as an investment advisor with the state of Florida and only transacts business in states where it is properly registered, or is excluded or exempted from registration requirements. Andrew Hill and clients of AHIA hold positions in the investments mentioned in this report. Please contact Andrew Hill Investment Advisors, Inc. if there are any changes in your financial situation or investment objectives, or if you wish to impose, add or modify any reasonable restrictions to the management of your account. Our current disclosure statement is set forth in Part II of Form ADV and is available for your review upon request. Tax and estate planning advice is general in nature and the firm is not engaged in the practice of law.