M Brown & Associates - Proactive Asset Management
We Change as Conditions Change

Our investment philosophy is to participate in the majority of long-term market advances, while avoiding the long-term market declines.

There are two distinct styles of managing investment portfolios; passive buy-and-hold and active investment management. We believe that active investment management is a better strategy than buy-and-hold, commonly used by most financial advisors.

The passive method is typically 100% invested, at all times, often part of a diversified portfolio. Many advisors choose this method so they can spend their time obtaining new clients, not managing the money of existing clients. Even when the advisor believes the market may go down, there is typically no action taken to reduce exposure in the portfolio from being 100% invested. We do not agree with this style of investing.

Chuck LeBeau, co-author of Computer Analysis of the Futures Market (McGraw-Hill 1991) sums up this strategy when he says, “Buy-and-Hold is not only the riskiest possible strategy; it doesn’t even qualify as a strategy. Buy and Hold is actually the absence of any intelligent exit strategy.”

All one has to do is look at a chart of the S&P 500 from January 2000 to June 2011, in order to realize that over the last 11 years “Buy-and-Hold” subjects investors to wide swings in volatility for little or no return, as a result of being invested in the market 100% of the time.

In order to navigate the ups and downs of the markets, portfolio manager, Gregory Bruno, CFP, uses an active strategy, “Proactive Asset Management”. The goal of Proactive Asset Management is to implement the changes before the market moves. Greg puts it best when he says, “A long-term investment strategy needs to take into account both changing market conditions and changing economic conditions. This translates into recognizing, that at times, it may be prudent to be out of the market in order to protect principal. That is why our investment mix is designed to reflect current opportunities in the market, not opportunities that were present last year or five years ago. As such, we will move into cash when we believe risk outweighs the potential for gain.”

Past performance does not guarantee future results.

Greg Bruno - Proactive Asset Manager

Portfolio Manager: Greg Bruno
Contact Greg:
Phone : 630-637-8600 ext. 207
Email: [email protected]