Patrick Adams, CFA, CEO, and CIO.Long-standing experience plays a critical role in the complex financial industry when it comes to making sound investment decisions. Seasoned professionals with a wealth of knowledge and a deep understanding of various market dynamics, risk management techniques, and investment strategies are invaluable. They can help individuals safeguard their assets and navigate economic downturns to achieve profitable outcomes.
A perfect example is PVG Asset Management Corporation. From the infamous dot-com bubble to the 2008 Great Recession and the COVID-19 crisis, the firm has consistently demonstrated its can-do mentality in the face of adversity and unparalleled prowess in protecting client investment portfolios through tumultuous market conditions.
In 2000, PVG’s experts predicted the bear market well in advance. To protect clients from taking a downdraft, it adopted its Loss Averse investment strategy, which protected their portfolios. It harnessed its sharp foresight again in 2008 when it embraced defensive income-oriented portfolios that incorporated inverse ETFs to protect portfolios, holding securities in blue chip and higher-dividend-paying stocks. Their astute decision-making helped clients generate a positive two percent return while the market witnessed a massive decline.
Loss Averse Investing
These experiences in navigating market volatility have earned PVG the trust and confidence of business leaders and investors across the U.S. financial industry. Its commitment to delivering top-tier returns for clients during economic downturns has contributed to its reputation as a dependable and successful asset management firm in the industry.
Experts in All Things Assets
PVG is employee-owned and well-known for helping institutions and individuals protect their capital during market downturns while generating absolute returns. Its strategies are based on proprietary technical algorithms developed and tested over the years under multifaceted scenarios. It ensures optimum performance by focusing on double-digit returns at every turn. The algorithms uphold the ideology of selling quickly when a substantial decline begins and buying early as the market rebounds.
“Our strategies are very defensive on the downside and have generated positive returns through bear markets,” says Patrick Adams, CFA, CEO, and CIO of PVG Asset Management Corporation.
PVG’s risk management policies include inverse ETFs, which allow clients to profit from downward price movements, and the implementation of moving stop losses and price targets, to limit potential losses and lock in profits. The strategies also call for maintaining considerable cash balances when investment conditions are not in favor, cushioning clients against market volatility and ensuring ample liquidity to leverage opportunities as they arise. It employs a myriad of moving averages to regulate the risk exposures of each strategy.
Our strategies are more focused on the technicals of the market, driving the allocations to be more aggressive or defensive
“We analyze the stock market’s valuations and the issues in front of it, which usually focus on the trend of earnings growth and the direction of interest rates.
By leveraging this methodology and associated analytics, PVG maximizes returns and minimizes risks in real-time, enabling clients to capitalize on emerging opportunities and protect their investments during volatile periods. The firm’s equity strategies outperform the traditional 60/40 investment approach, making it a lucrative alternative for business leaders and investors.
The business acumen of PVG’s experts enables them to identify prospects and deficiencies within the market and offer strategies that effectively address them. Through their analytical lens, they observed that the high- and low-end segments of the financial services industry were frequently underserved. To resolve this, it set up a family office that accommodates the needs of investors, from novice to expert. Recognizing that a one-size-fits-all policy is not the best investment approach, it provides a wide range of highly-focused, tactical, and strategic investment strategies that align with financial goals and risk appetite.
Finding Your Investment Fit: A Spectrum of Investment Strategies
Investors attempting to quickly leverage changing market dynamics can use PVG’s highly flexible Tactical Core strategy (TC) or more conservative Tactical Total Return strategy that protects value by decreasing core positions, selling satellite positions, and adding hedges to mitigate risks when appropriate when needed. This Loss Averse investing is an optimum framework to preserve wealth in faltering markets. TC and TTR allow investors to divert from traditional asset allocation models and employ a managed strategy to tackle volatility. An aggressive yet extremely flexible framework, it churns out positive annual returns and adds protection and value to client portfolios. “When a bear market begins, it is imperative to protect capital. Traditional asset allocation generally does not work as both stocks and bonds may decline significantly. During previous bear markets, it can take 5-10 years for the stock market to recover its losses. Obviously, our strategies do not have this problem,” says Adams. One of PVG’s most widely used and diversified strategies is its Tactical Total Return strategy, with exposure to various diverse markets, including NASDAQ, Russell 2000, S&P 500, International, and a few of PVG’s favorite stock ideas. Here, the investment is made in ETFs and individual securities. The firm’s experts conduct fundamental and technical analyses and utilize internal and external intelligence to implement this strategy.
”When a bear market begins, it is imperative to protect capital. Traditional asset allocation generally does not work as both stocks and bonds may decline significantly. During previous bear markets, it can take 5-10 years for the stock market to recover its losses. Obviously, our strategies do not have this problem”
Individuals can use PVG’s Dynamic Core Strategy to reduce long and short-term risks and volatility in the S&P 500 Index. The portfolio is typically invested in low-cost S&P 500 ETFs that represent broad economic sectors of the U.S. markets. This strategy effectively captures a substantial portion of rising stock market returns and reduces losses during downfalls. This strategy is ideal for investors that want the returns of the S&P 500 but also want their money to be risk managed.
To empower businesses to invest in emerging biotechnology, pharmaceutical, medical devices, and other innovative technologies and services markets, PVG offers its Emerging Healthcare strategy that focuses on individual stocks of smaller, fast-growing companies, but primarily companies that are developing the next great drug. Aiming to outperform Nasdaq Biotech Index (NBI), this framework is expected to significantly surpass the S&P 500.
Adams subscribes to the belief that innovation is the key determinant of a successful investment. PVG is doing something very unique that is different from their more diversified portfolios. Doubling down on this innovation tenet is PVG’s unique, separately managed accounts option that features only ten top stocks. The firm also manages the risk of portfolios by hedging them in bear markets. By virtue of this, it brings to clients advantageous performance opportunities across a wide range of stock accounts. Another critical aspect that sets the firm apart in the market is its ability to cater to small investors.
“We offer SMAs a minimum investment threshold as low as $10,000. It's unique for individual investors to get professional money management for accounts that small,” adds Adams.
Small-time investors receive customized strategies, tax advantages over mutual funds, and direct ownership of their securities. “Why would a young aggressive investor buy a mutual fund with hundreds of stocks, and without downside protection when needed, when they can invest in our 10 best ideas,” says Adams. Considering individual investors seldom possess baseline familiarity, analytical horsepower, and input from numerous research sources, leveraging PVG’s expertise enables them to invest in the right stocks at the right time and potentially generate consistently much higher returns.
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We analyze the stock market’s valuations and the issues in front of it, which usually focus on the trend of earnings growth and the direction of interest rates. However, our strategies are more focused on the technicals of the market, driving the allocations, to be more aggressive or defensive
PVG has gained recognition as a trusted and reliable investment partner. Its ability to help clients protect their capital in bear markets over the last twenty years has been exemplary. Its team of venerated industry experts, pooling from their decades of collective experience, helps individuals steer clear of the bureaucracy of the investment landscape and enjoy a seamless and hassle-free asset management experience.
Since the U.S. financial landscape is at a crossroads with new financial products, regulations, and technologies creating opportunities and nuances for consumers and businesses alike, PVG will continue to set new benchmarks of excellence and innovation. With a proven track record of commitment and success, it will eliminate investment bottlenecks and enable its clients to grow their assets through turbulent market conditions.
