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News In Brief
Portfolio Statistics as of 12/31/12:
35 Equity positions 14% International equities Core portfolio average holding period 2-3 years
Performance Summary
Blue Point seeks equity-oriented growth at a reasonable price with a global perspective. During the fourth quarter Blue Point, which is based on a model portfolio applied to separately managed accounts, returned 4.91% after advisory fee. The Total Return of the S&P 500 during the fourth quarter was -1.01%. Blue Point outperformed the Total Return of the S&P 500 by an impressive 5.29% during the fourth quarter. The Blue Point portfolio saw gains in technology and healthcare companies, while share price declines in manufacturing and commodity related companies negatively impacted the portfolio. During 2012 Blue Point returned an impressive 21.69% after advisory fee. The Total Return of the S&P 500 during 2012 was 16%. Blue Points active management generated an additional 5.69% of value.
Important Disclosure: During the fourth quarter Blue Point changed the account used to track historical performance. The change was required as a result of estate planning. Both accounts have the same inception date and similar performance but differences in the timing of withdrawals and contributions did impact results. The highest annual variance was 1.16% and the lowest was 0.02%. Blue Points new model portfolio was rebalanced within one-tenth of a percent of the old model portfolio to ensure consistency.
Disclosures: Performance of the separate accounts can differ substantially from the actual performance of Blue Point, the model portfolio, due to timing of entry, whether account is taxable or non-taxable, and the timing of withdrawals. Past performance does not guarantee future results. The management fee schedule is as follows: 1.2% on first $1 million, 1.0% on the next $3 million, 0.85% on next $5 million. Accounts under $0.5 million are 1.5% annually. Depending on circumstance, institutional fee schedules may be negotiated. Blue Point Investment Management, LLC, is a Maryland registered investment advisor, founded in 2006. To receive a copy of the firm's Form ADV Part II, contact us at 443-600-8050.
Market Outlook
Equities Favored Asset Class Equities offer a claim on the earnings of real assets which unlike currency cannot be increased without additional investment. Loss of Corporate Headquarters Without tax reform and policies oriented towards business, fewer of the worlds corporations will be based in the U.S. Low Growth Creates a Cost Focus In the absence of revenue and wage growth, companies and consumers are very cost sensitive. This creates demand for low price leaders, software and automation. This, in turn, is enhancing U.S. competitiveness. Deficit Remedy Developed countries are rallying around growth as a deficit cure rather than austerity. China Economic recovery indicators are positive but weak audit standards and margin pressure continue to present challenges. Energy and Natural Resources New drilling technology is fundamentally changing the worlds supply of energy. Natural resource companies are challenged by slower global growth.
Portfolio Manager Niall H. OMalley (443) 600-8050 niall.omalley@bluepointim.us Web site www.bluepointim.us
Way Points
Blue Point's Six Year Performance
Blue Point (after advisory fees) S&P 500 Total Return* Performance vs. Benchmark 2007 23.04% 5.49% 17.55% 2008 2009 -28.78% 44.08% -37.00% 26.46% 8.22% 17.62% 2.20%
*Total Return includes the reinvestment of dividends
A Global Perspective
Blue Point Investment Management offers equity-oriented growth with a global perspective. The investment discipline seeks Growth at a Reasonable Price. Each client account is managed separately. The Growth At a Reasonable Price (GARP) investment strategy is a blend of active growth and value investing. As a rule, value investors focus on the price of the security, the numerator of the P/E ratio, while growth investors focus on earnings offered by the security, the denominator of the P/E ratio. GARP represents a blended approach and is often referred to as a market-oriented investment strategy. Through macro-economic research sustainable long-term trends are identified. Then fundamental research is used to identify the best companies that stand to benefit from favorable trends. Investments are geared towards long-term value creation while preserving capital. Blue Point seeks equity-oriented growth 2010 2011 17.26% -4.55% 15.06% 2.11% 2012 21.69% 16.00% -6.66% 5.69%
while actively managing the downside risk. Under normal circumstances, Blue Point invests at least 60% of its net assets in domestic U.S. securities. This global approach offers significant investment
Client Profile
Individuals/Institutional (100%)
Individuals Institutional Total
opportunities here and abroad. In times of market crisis, adjustments to portfolio holdings will be made that best serve the preservation of capital while seizing investment opportunities. Each separately managed account stays in the clients name providing complete transparency. Blue Point receives no commissions or compensation that create conflicts of interest. To further ensure the alignment interests Blue Points portfolio manager invests in the same model portfolio as clients. Blue Point seeks equity-oriented growth with a global perspective, while offering a portfolio manager you know and trust.