Symons Capital Management Introduces Separate Account Hedge Strategy
Symons Capital Management has introduced its third investment strategy, Symons Absolute Alpha. The Strategy seeks to achieve steady returns, regardless of market direction, by using long and short equity investments, the purchase of put and call options, and the sale of covered call options. The Absolute Alpha strategy is designed for high-net worth and institutional clients, with a $1 million minimum account size.
Pittsburgh, PA, April 26, 2006 --(PR.com)-- Symons Capital Management has introduced its third investment strategy, Symons Absolute Alpha. The Strategy seeks to achieve steady returns, regardless of market direction, by using long and short equity investments, the purchase of put and call options, and the sale of covered call options. The Absolute Alpha strategy is designed for high-net worth and institutional clients, with a $1 million minimum account size.
Symons Absolute Alpha has been tested (using assets of the firm’s principals) since January 1, 2004, generating a since-inception annualized return of 8.54% through March 31, 2006. In addition to pursuing steady returns regardless of market direction, Absolute Alpha accounts are designed to avoid substantial losses by limiting downside risk, preserve capital, and reduce portfolio volatility. “This Strategy is a natural extension of, and an intellectual sibling to, the investment philosophy that has guided us during more than 20 years of investing side-by-side with our clients,” said Edward L. Symons, Jr., Chairman and CEO of Symons Capital Management. “As with our other accounts, our Absolute Alpha accounts will rely on our original research, seeking to obtain superior long-term returns with an eye toward assuming only sensible exposures to risk.”
The Symons Absolute Alpha strategy incorporates the original, plain-vanilla concept of “hedging,” which is to protect against, rather than to engage in, substantial market risk, Symons said. An Absolute Alpha account can be a sensible addition to an investor’s overall portfolio strategy, he added, because of its anticipated low correlation to the broad market indices.
“We believe this is the first investment vehicle of its kind. Our Absolute Alpha strategy utilizes securities that are valued every day, with no lock-in periods, and it utilizes a separate account with an independent custodian, thus making it completely transparent to the underlying client” stated Michael P. Czajka, Managing Director of Symons Capital with responsibility for institutional marketing. “I believe this strategy will be a huge success not only in the institutional market, but perhaps even more so with Registered Investment Advisors who are creating their own fund-of-fund or manager-of-manager programs,” Mr. Czajka added.
ABOUT SYMONS CAPITAL: Symons Capital Management, an SEC-registered investment adviser, manages more than $200 million in equity investments for institutional, family office and individual investors, selecting stocks for long-term investment based on the firm’s original research. Symons Capital operates its principal office in the Pittsburgh area and a regional office near Philadelphia.
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Symons Absolute Alpha has been tested (using assets of the firm’s principals) since January 1, 2004, generating a since-inception annualized return of 8.54% through March 31, 2006. In addition to pursuing steady returns regardless of market direction, Absolute Alpha accounts are designed to avoid substantial losses by limiting downside risk, preserve capital, and reduce portfolio volatility. “This Strategy is a natural extension of, and an intellectual sibling to, the investment philosophy that has guided us during more than 20 years of investing side-by-side with our clients,” said Edward L. Symons, Jr., Chairman and CEO of Symons Capital Management. “As with our other accounts, our Absolute Alpha accounts will rely on our original research, seeking to obtain superior long-term returns with an eye toward assuming only sensible exposures to risk.”
The Symons Absolute Alpha strategy incorporates the original, plain-vanilla concept of “hedging,” which is to protect against, rather than to engage in, substantial market risk, Symons said. An Absolute Alpha account can be a sensible addition to an investor’s overall portfolio strategy, he added, because of its anticipated low correlation to the broad market indices.
“We believe this is the first investment vehicle of its kind. Our Absolute Alpha strategy utilizes securities that are valued every day, with no lock-in periods, and it utilizes a separate account with an independent custodian, thus making it completely transparent to the underlying client” stated Michael P. Czajka, Managing Director of Symons Capital with responsibility for institutional marketing. “I believe this strategy will be a huge success not only in the institutional market, but perhaps even more so with Registered Investment Advisors who are creating their own fund-of-fund or manager-of-manager programs,” Mr. Czajka added.
ABOUT SYMONS CAPITAL: Symons Capital Management, an SEC-registered investment adviser, manages more than $200 million in equity investments for institutional, family office and individual investors, selecting stocks for long-term investment based on the firm’s original research. Symons Capital operates its principal office in the Pittsburgh area and a regional office near Philadelphia.
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Contact
Symons Capital Management, Inc.
Michael P. Czajka
610-648-3851
www.symonscapital.com
Michael P. Czajka
610-648-3851
www.symonscapital.com
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