Managing Your Money
ZF Capital is an investment advisor that specializes in managing investment portfolios for long-term growth, income and capital appreciation. We manage portfolios for individuals, trusts and pension plans. Several types of investment portfolios are available.
Thank you for your interest in our services. We look forward to hear from you and offer our expertise to you.
Investment Philosophy
Our investment approach recognizes that to achieve long-term, superior performance, there must be an acceptance of some short-term risk. We pursue an investment allocation strategy that emphasizes diversification, structuring our clients’ portfolios according to their ability to withstand short-term volatility in the pursuit of long-term performance.
We consider fundamental and technical factors in determining a prospective investment’s risk-reward ratio. Overall market risk is considered in the timing of investment decisions and the implementation of hedging strategies. We seek to maximize portfolio performance and manage volatility by reducing investment exposure during periods of apparent high market risk, while increasing investment commitment during periods of apparent lower risk.
Our goal, depending on market conditions and individual client risk tolerance, is to achieve a 15% to 20% average annual return for over a five-year period. We expect to achieve this goal with minimized volatility through our combination of risk-reward analysis and market-timing strategies.
Custody of Assets
Custody of the assets under management resides with the bank or brokerage house of the client’s choosing. ZF Capital receives a limited power of attorney to buy and sell securities for the client’s account. Clients still receive trading confirmations and monthly statements directly from the brokerage firm.
Reports
Clients receive quarterly performance, position and realized gain/loss reports. The performance review indicates the account’s return for the prior quarter, the year-to-date return and the total return since inception and compares investment performance with the performance of the major indices.
Compensation
We are compensated on a fee-only basis, depending on the assets under management, from 2.00% to 0.50% per year plus some percentage of the profits. We do not receive brokerage commissions or any other compensation. Thus, our interest in enhancing investment value is aligned with the interests of our clients.
Our Portfolios
Flexible Portfolio
The asset allocation mix is tactically managed with the goal of maximizing long-term investment returns through a portfolio of stocks, bonds and cash equivalents. This portfolio is designed for investors willing to accept significant short-term volatility in the pursuit of superior long-term investment performance. Flexible portfolios have been managed for individual clients for over 10 years.
Capital Growth Portfolio
The asset allocation mix consists of stocks and cash equivalents. This portfolio is designed for investors willing to accept significant short-term volatility in the pursuit of superior long-term investment performance.
Balanced Portfolio
The asset allocation mix of stocks, bonds and cash equivalents has a target bond exposure of approximately 25%. This portfolio is designed for investors willing to accept a slightly diminished long-term performance expectation in exchange for smaller short-term account fluctuations.
Conservative Portfolio
The asset allocation mix of stocks, bonds and cash equivalents has a target bond exposure of approximately 50%. This portfolio is designed for investors who wish to reduce short-term account fluctuations, accepting a lower long-term performance expectation as a result.
Advisor Portfolio
The asset allocation varies according to individual investor preferences. This portfolio is designed for investors who want to exercise more control over the management of their investments. Short-term volatility and long-term performance will vary depending on individual portfolio asset allocations.
Helping You to Develop as a Trader
We can help you to find how many positions to hold, size of each position, stop trading rules, dividing money between initial and follow-up positions, diversification, stop-loss orders, and importance of staying on cash.
If you’re thinking about becoming a better trader and need help, you should give us a call.
Disclaimer
ZF Capital is in the business of investing its clients’ funds in equities and other securities for maximum long-term gain. Investors are warned that investing in securities involves risk of loss if the securities that have been bought decline in value, and that funds invested in securities are not guaranteed against such loss by the FDIC, the SEC or any other governmental or non-governmental organization.