Summary: Not sold to the retail public, Business Owners Charter, Inc. (BOC) provides this report only for Financial Professionals for informational purposes.
Whether you are an Outsourced Chief Investment Officer (OCIO), Registered Investment Advisor, Franchise Owner, a provider of a separately managed account (SMA), or other type of Financial Professional, we are an investment methodology fiduciary to investment firms like yours serving all risk tolerances. For example, the above BOC portfolio Total Returns were after annual average advisor fees of 2.13%. Call Dan at 708-825-7301 or email Dan@BusinessOwnersCharter.com.
The BOC Portfolio offers a potential to provide
- Outperformance of benchmark SPDR S&P 500 ETF Trust (symbol SPY),
- Fundamental investing with momentum,
- Moderate correlation relative to SPY as an alternative investment, with low beta (less risk) and high alpha (excess returns).
Outperformance of S&P 500 is rare
According to S&P Dow Jones Indices, fewer than 7% of funds beat the S&P 500.
Spend Agenda is a phrase coined by Business Owners Charter, Inc. for recurring deficit spending. “Standard economic theory states that inflation will get out of control under a prolonged mix of certain monetary and fiscal policies,” according to the International Monetary Fund (“IMF”) on 4/7/22. Yet US Fiscal Policy Spend Agenda has deficit spent every year since 2001. If a persistent Spend Agenda occurs in a fiat currency, inflation may persist. Outperformance is a potential investment solution that may beat inflation.
Fundamental Investing with Momentum
The BOC Portfolio is created using algorithms and statistics, a process of two strategies overseen by a BOC Portfolio Director.
- First, a List Strategy uses big data to identify an initial ETF List using a proprietary market momentum algorithm. A macro analysis, or context, is derived principally from the stock market.
- Second, the ETF List is reduced using a Filter Strategy. The Filter Strategy is qualitative, searching for fundamental value and momentum within the context. The resulting BOC Portfolio may be substantially different from the initial ETF List.
Correlation
Correlation of 1.0 means the BOC Portfolio 100% correlated to SPY. The BOC Portfolio seeks moderate correlation (between 0.5 and 0.7).
Results
Since inception in 2017, BOC Portfolio demonstrates moderate correlation relative to SPY as an alternative investment, with low beta (less risk than 1) and high alpha (% excess returns).
The context principally from the stock market may opportunistically provide a Market Exit Strategy to reduce beta and increase alpha.
BOC Long Term Strategy
BOC Portfolio seeks opportunities worldwide with a potential for a repeatable methodology. When its systematic, computer-powered List Strategy identifies a lack of momentum, it uses benchmark-like investments seeking relative fundamental value; when its algorithms indicate momentum, fundamental value and momentum-based investments are used. Adding an element of conservatism in a portfolio is as important to the Director as considering upside potential. A market exit strategy employs a special report mitigating risk in down markets. The macro analysis is the context.
Underlying the BOC Portfolio is a belief that there may be less risk actively investing in the growing tip of world-wide securities markets than passively investing in under performing asset allocations; in rising markets it seeks to recommend investments in categories of securities with accelerating demand and rising value preferably at the start of their investment life cycles; in falling markets it seeks to preserve capital.
Management
Jeffrey Liautaud (MBA, BS Mathematics) began his career on Wall Street in investment banking. Later he purchased and operated the Sherpa Snowshoe Company. When the snowshoe markets changed, Jeff nearly went bankrupt, and in 1998 he sold the business. This near bankruptcy experience forever changed him to add an element of conservatism in all that he did. That same year Jeff became a financial planner. In 2001, he founded Business Owners Charter, Inc. (“BOC”) for ownership of proprietary investment algorithms.
In 2003, Jeff founded Tree Fort Financial a Registered Investment Advisor.
In 2014, Jeff’s daughter, Jacki Liautaud, purchased Tree Fort Financial (“TFF”) from Jeff. With a double major in college, she graduated number one in her class in Sociology. For over 15 years she worked as a business consultant in marketing, sales and business development.
In 2015, seeking to optimize the BOC algorithms with greater consistency, Jeff and Jacki were mentored by a Fortune 500 pension consultant and turnaround specialist using alternative investments. He signed a BOC confidentiality agreement and mentored back testing BOC algorithms. BOC applied a rigorous, scientific method-based approach to historically quantify the most promising algorithms and completed a detailed research study. Under the mentorship, Jacki became the BOC Portfolio Recommender and Jeff became the BOC Portfolio Director. Dan Wagner executed the actual back test for BOC which tied out to the mentor’s back test thus giving BOC its first credible self back test capability highly proprietary and confidential to this day.
In 2017, Dan Wagner, a graduate engineer, and developer, integrated research findings and was responsible for maintaining and updating the multiple SQL databases used in BOC research.
In 2021, Dan consulted full time for BOC providing automated solutions, and to support research back testing research. Jacki began to mentor Dan to do detailed momentum and fundamental investing analysis as BOC Portfolio Recommender.
In 2022, Angela Onelia Liautaud accepted sole voting control of BOC with hire and fire authority over the BOC Chief Executive Officer.
In 2023, under the mentorship of Jeff and Jacki Dan became the BOC Portfolio Director and President of Business Owners Charter, Inc. Our goal is to be an investment methodology fiduciary to investment firms like yours serving all risk tolerances. Call Dan at 708-825-7301 or email Dan@BusinessOwnersCharter.com.
This content is provided by BOC for informational purposes only. Investing involves the risk of loss and investors should be prepared to bear potential losses. Past performance may not be indicative of future results and may have been impacted by events and economic conditions that will not prevail in the future. In spite of best efforts, losses may occur. Proprietary market risk analysis identifies changing markets, but the Director has full discretion to select funds for the portfolio. BOC Market Exit Strategy may be documented by a special report.