Long-Short Managed Accounts


 

Long-Short Managed Accounts

Due to the fact that stock market returns for the last several years have been very volatile, investors have realized the need for the diversification of their assets from the traditional buy and hold long equity approach. Lang Asset Management has developed two investment products that seek to enhance returns and lower risk.

Lang Asset Management's Long-Short Managed Accounts product is designed to lower volatility by holding long and short positions in most market environments. We seek investment returns that are not necessarily correlated with overall stock market returns.

Stock investing has typically focused on finding undervalued securities that offer opportunities for capital appreciation. As the bull market matured, it became increasingly difficult to find stocks that represented real value. Selling these overvalued securities short while buying other undervalued securities long provides a hedged approach to the market.

Each portfolio holds securities long and short, and the percentage of stocks long and short is determined by market conditions and individual security opportunities. We do not ultilize futures or options.

Long-Short individually managed accounts are held in the client's own name at a broker or bank, as opposed to being "pooled". Also, in today's uncertain environment one should insist on complete transparency; that is, being able to access their portfolio from an independent third party source online 24/7 to ascertain the current holdings and account value. Our separately managed account product provides this access. In addition, because the S & P 500 represents our stock universe, we maintain high levels of liquidity. Thus we allow 100% redemption of the assets at any time, as opposed to quarterly or annual limitations (or never) from hedge funds. Finally, our minimum account size of $200,000 is much lower than most hedge funds.

Long-Short Managed Accounts Performance

Initial positions typically represent 3 to 4% of the value of the portfolio, so a standard account will be well diversified (20-25 securities). We are pleased to have exceeded all comparable indices since the inception of this product.



Long-Short Composite Performance History - Net of Fees 12-31-00 (Inception) to 12-31-12
 
Time Period Composite
Return (%)		 S & P 500
(%)
Inception to Date
12-31-00 to 12-31-12 55.29      35.88     
Inception to Date-Annualized
12-31-00 to 12-31-12 3.74      2.59     

     

    1. Lang Asset Management, Inc.(LAM) is a portfolio manager that invests solely in U. S. based fixed income and equity securities. LAM is defined as an independent investment management firm that is not affiliated with any parent organization.
    2. Performance results are presented after management and performance fees, trading, and custodial fees.
    3. The benchmark is the S & P 500. The benchmark is used for comparison purposes and this comparison should not be understood to mean that there is necessarily a correlation between the performance returns of this product and the benchmark.
    4. No alteration of composites as presented here has occurred because of changes in personnel.
    5. A complete list of firm composites and performance results is available upon request.
    6. It cannot and should not be assumed that future results will be profitable or will equal or exceed these model results. It should not be assumed that recommendations made in the future will be profitable or will equal the performance of the securities listed.

    Consultants increasingly recommend this asset class, similar to their endorsement of international equities as a diversification measure several decades ago.

    For additional information and fee schedule click on Getting Started.

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