Investment Discipline

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Investment Discipline

Carr & Associates constructs portfolios utilizing primarily investment grade securities.  Issues are selected for their credit worthiness, risk aversion and yield support characteristics as well as for longer term appreciation potential.  Holdings are sold when they no longer possess these qualities.  Portfolios typically contain 10-20 issues, diversified across industry groups.  Clients own convertible bonds or, on rare occasions and for brief periods after conversion, the common stock of previously held convertibles.  As of June 30, 2009, the holdings of our clients' portfolios had an average Standard & Poor's quality rating of BBB, and generated a current income return of 3.8%. 

Carr & Associates is noted for the consistency of its returns as well as its outstanding risk-adjusted returns or Sharpe Ratio. Carr & Associates' performance results are shown net of management fees paid to Carr & Associates calculated at the maximum rate of 0.75% per year.

Convertible Securities

Total Return Comparisons
Periods Ending June 30, 2009

Sharpe

Index; Return Risk Ratio
---------------20 Years---------------
Carr & Associates      6.27 5.60 0.38
S&P 500 7.75 15.00 0.24
Lehman Government/Credit Bonds 7.05 4.49 0.65
Citigroup High Grade Long Term Bonds  7.64 8.83 0.40
60%S&P500/40%LG/C Bonds 7.76 9.45 0.35
90-Day Treasuries 4.13 1.30 0.00
---------------15 Years---------------
Carr & Associates 5.83 5.50 0.37
S&P 500 6.90 15.69    0.20
Lehman Government/Credit Bonds 6.57 4.48 0.63
Citigroup High Grade Long Term Bonds 7.18 9.62 0.35
60%S&P500/40%LG/C Bonds 7.11 9.68 0.35
90-Day Treasuries 3.77 1.20 0.00
----------------10 Years---------------
Carr & Associates 4.69 5.94 0.28
S&P 500 -2.22 16.02 -0.33
Lehman Government/Credit Bonds 5.98 4.57 0.64
Citigroup High Grade Long Term Bonds 6.60 10.70 0.33
60%S&P500/40%LG/C Bonds 1.34 9.69 -0.18
90-Day Treasuries 3.05 1.03 0.00
                                                                                                         ---------------- 5 Years---------------
Carr & Associates 1.70 6.86 -0.18
S&P 500 -3.43 15.50 -0.41
Lehman Government/Credit Bonds 4.80 4.46 0.41
Citigroup High Grade Long Term Bonds 4.78 12.72 0.14
60%S&P500/40%LG/C Bonds -0.82 9.74 -0.39
90-Day Treasuries 2.95 0.98 0.00

 

Prepared 09/30/09

 

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