2009 was an extraordinary year by nearly any measure. The menacing equity market meltdown that began in September of 2008 carried into most of the first quarter of 2009. On an abrupt turn in March, the markets charged upward the remainder of the year with strong returns in the second and third quarters and a moderate gain in its finale.
By design, our All Cap Core Equity Strategy (ACC) protected on the downside, and has provided excess return over a full market cycle.
Period 1: A Downhill Battle
January 1, 2009 - March 9, 2009
» Roosevelt All Cap Core Equity Outperforms. Protect capital first, seize upon opportunities second. We are managers of risk and maintained a strong defensive posture during this period.
Period 2: Historic Upward Gain
March 10, 2009 - August 31, 2009
» Positive Double-digit Returns, but Roosevelt All Cap Core Equity Underperforms on a Relative Basis. Our strong defensive posture remained intact during the early-to-mid recovery, as we were most concerned with the protection of shareholder capital. This period was led by a rally whereby the highest beta stocks posted the highest gain.
Period 3: A Recovery in Moderation
September 1, 2009 - December 31, 2009
» Roosevelt All Cap Core Equity Bests the S&P 500. We embraced a more bullish stance as we had greater confidence that a recovery mode had indeed taken hold. Outperformance was attributed to stock selection and sector allocation, as we shifted the portfolio toward early cyclical benefactors, like Industrials, Materials and Technology.
Putting Our All Cap Core Equity Performance Into Longer-Term Perspective.
An investor in the All Cap Core Equity (gross of fees) today would need to achieve a return of 18.4% in order to return to October 2007 market peak levels, while an investor in the S&P 500 would require a return of 32%.
This information is intended solely to report on investment strategies and opportunities identified by Roosevelt. Opinions and estimates offered constitute our judgment and are subject to change without notice, as are statements of financial market trends, which are based on current market conditions. This material is not intended as an offer or solicitation to buy, hold or sell any financial instrument. References to specific securities and their issuers are for illustrative purposes only and are not intended to be, and should not be interpreted as, recommendations to purchase or sell such securities. Please contact us at 646-452-6700 if there is any change in your financial situation, needs, goals or objectives, or if you wish to initiate any restrictions on the management of the account or modify existing restrictions, or if you would like to request a copy of our Code of Ethics. Our current disclosure statement is set forth on our Form ADV Part II, available for your review upon request, and on our website, www.rooseveltinvestments.com.
Past performance is not a guarantee of future results. Indices are unmanaged and cannot accommodate direct investment. Themes assigned as per Roosevelt Investments’ evaluation. Risk tools may include cash or other securities that we believe possess a low or inverse correlation to the overall market.
INVESTMENT PRODUCTS: NOT FDIC INSURED • NO BANK GUARANTEE • MAY LOSE VALUE