Turner Capital Portfolio Strategies
Turner Capital has multiple investment strategies (see brief overviews below). Clients can, depending on the total amount of their investment and risk profile, follow one or more of these strategies in a managed account structure.
The required total family aggregate minimum amount of capital to work with Turner Capital is $250,000. The minimum account size per portfolio depends on the specific portfolio strategy:
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Tactical Growth Strategy: $100,000
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Turner Quant Advantage Strategy: $100,000
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Diversified Income Strategy: $100,000
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Leveraged Index Strategy: Not Required
We use a "Managed Account" structure where every client maintains 100% control of their capital at all times. Capital is never commingled with other accounts that do not belong to the client. Turner Capital is ONLY permitted to make trading decisions in client accounts and to deduct pre-authorized management fees. Clients can terminate Turner Capital's management of their accounts at any time with a simple phone call to either Turner Capital or the brokerage firm where the client accounts are custodied.
Funds are custodied at TD Ameritrade.
MANAGEMENT FEES (We aggregate family accounts to determine the total account size for Fee setting):
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2.0% for aggregated accounts that are less than $250,000.
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1.5% for aggregated accounts that are from $250,000 to $1,000,000.
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1.25% for aggregated accounts that are from $1,000,000 to $3,000,000
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1.0% for aggregated accounts that are $3,000,000 and above
TRADE TRANSACTION FEES: NONE
OBJECTIVE: Outperform the S&P 500 index in bull market cycles and generate a positive return in bear market cycles.
Management Approach - This is a conservative investment strategy that focuses on fundamentally strong, up-trending, stocks in bull markets; raises cash in neutral or transition markets; and, invests up to 100% of capital in non-leveraged index inverse ETFs in bear markets. 20 maximum holdings with an equal distribution of capital per holding. No more than 30% in any one Sector and no more than 20% in any one Industry in bullish markets in bullish markets.
Objective: The objective of this strategy is capital appreciation in both bull and bear markets and capital preservation in transition markets. Stop loss settings are maintained on all holdings. Stops are determined by a quantitative analysis of each holding’s volatility, level of unrealized gains and trend of the major indexes and the holding. Exit transactions can occur at any time.
MANAGEMENT APPROACH - The investment strategy is aggressive in both bull and bear market cycles. In bull cycles, the portfolio can hold up to 20 fundamentally strong, technically up-trending stocks. In transition markets, the portfolio can hold a combination of cash, stocks and/or inverse ETFs, at the discretion of the portfolio manager. In bear cycles, the strategy focuses on leveraged index inverse ETFs.
DIVERSIFIED INCOME STRATEGY: (Start Date: 11/2019)
OBJECTIVE: Generate up to 9% +/- annual income from dividend-paying ETFs, CEFs (Closed End Funds), stocks and covered call trades.
Management Approach - The investment strategy utilizes the Turner Capital proprietary "income harvesting" approach in regard to capturing dividend yield. The portfolio will hold a diversified mixture of ETFs, CEFs and/or stocks that exhibit a consistent to growing dividend yield from 4% to well over 10%, depending on the equity. The objective is, primarily, income. Holdings will, on occasion, include short-term covered call and/or naked put trades. If no high-yielding equity meets the minimum requirement to be in the portfolio strategy, the strategy will focus on the highest-yielding safe money market funds available at the time.
LEVERAGED INDEX STRATEGY: (Start Date: 01/2020)
OBJECTIVE: 50/50 split of capital in SSO and QLD in bull markets, along with one or more high momentum stocks; 50/50 split of capital in SDS and QID in bear markets; and in cash in transition markets.
MANAGEMENT APPROACH - This is a very risk tolerant strategy that is both aggressive and opportunistic. Draw-downs can be significantly higher in this strategy than the other Turner Capital investment portfolios. The goal is to take advantage of strong bull or bear market trends and to be fully invested when possible. Clients following this strategy must sign a waiver regarding the higher risk of holding leveraged ETFs in their accounts.
PAST PERFORMANCE IS NOT ALWAYS INDICATIVE OF FUTURE RETURNS. YOU SHOULD NOT BASE YOUR DECISION TO FOLLOW ANY TURNER CAPITAL PORTFOLIO STRATEGY BASED ONLY ON HISTORICAL RETURNS. YOU CAN LOSE CAPITAL FOLLOWING THIS OR ANY INVESTMENT STRATEGY THAT RELIES ON THE STOCK MARKET FOR POTENTIAL GAIN. PERFORMANCE NUMBERS ASSUME NO COST FOR TRADING AND DO NOT INCLUDE THE COST OF MANAGEMENT FEES, WHICH VARY, DEPENDING ON THE TOTAL AMOUNT UNDER MANAGEMENT OF CLIENT.
IMPORTANT: THE PERFORMANCE-RELATED INFORMATION PROVIDED HEREIN IS NOT REPRESENTATIVE OF PERFORMANCE IN ANY CLIENT ACCOUNT DUE TO VARIOUS FACTORS SUCH AS WHEN THE CLIENT ACCOUNT WAS OPENED, THE FEE CHARGED, AND ANY CLIENT RESTRICTIONS.
