THE DIFFERENCE

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is in the details

Ask us about our performance. Methodology based on simple economics

You may wonder, if this system works so well, why doesn’t every investment advisor use this method? It’s been our experience that many do not. Call it inertia or the status quo, but we find that most financial advisors came up through the same system where the goal was to go out, shake hands with clients and prospects, and put them in their firm’s proprietary investment models – then go out and acquire more clients.

Conversely, we believe that investment performance is and should be what you are talking to with your clients – and all the evidence we have observed points to that direction. Investment performance and the risk mitigation on the models we use, speaks for itself.

When you cut through all the noise, what moves stock prices is supply and demand. It is basic economics. If there are more buyers willing to buy than sellers willing to sell, the price will move higher. If there are more sellers than buyers, the price will move lower. Analyzing this price action can yield important information.

The powerful tools we use

Point & Figure Methodology is essentially a logical, organized way of recording the forces of supply and demand. It has existed since the late 1800s and was utilized by Charles Dow, the original editor of the Wall Street Journal.

We incorporate Nasdaq Dorsey Wright & Associates’ Relative Strength into our decision-making. As the name suggests, it is an investing technique that compares the performance of individual investments to that of the overall market. Relative strength investing has an entry and exit strategy; buy an investment when it is gaining strength, sell when it is losing strength. Raymond James is not affiliated with Nasdaq Dorsey Wright.

Nasdaq Dorsey Wright

Both of these tools, Relative Strength and Point & Figure, are used by Dorsey Wright, a research provider to financial professionals on Wall Street and around the world – including us at Dillon Investment Management.

We use Nasdaq Dorsey Wright strategies within a variety of investment vehicles including: Mutual Funds, Unit Investment Trusts (UITs), ETF modeling, Separately Managed Accounts (SMAs), the Technical Leaders family of ETFs, and Tactical Tilt Managed Accounts.

A different approach to a diversified portfolio

Our disciplined strategy is to revise the investments we hold , sometimes as often as monthly, based on the relative strength scoring mechanism employed by Nasdaq Dorsey Wright. Our objective is to always own the investments with the strongest strength relative to the overall market. It’s a different diversification approach than the one used by active fund managers who subscribe to Modern Portfolio Theory (MPT), where you own investments across every asset class, whether they are strong or not.

Nasdaq® is a registered trademark of Nasdaq, Inc.

The information contained above is provided for informational and educational purposes only, and nothing contained herein should be construed as investment advice, either on behalf of a particular security or an overall investment strategy. Neither Nasdaq, Inc. nor any of its affiliates makes any recommendation to buy or sell any security or any representation about the financial condition of any company. Statements regarding Nasdaq-listed companies or Nasdaq proprietary indexes are not guarantees of future performance.

Actual results may differ materially from those expressed or implied. Past performance is not indicative of future results. Investors should undertake their own due diligence and carefully evaluate companies before investing. Nothing contained herein should be construed as an offer to sell or the solicitation of an offer to buy any security.

Nasdaq Dorsey, Wright & Associates, LLC, a Nasdaq Company, is a registered investment advisory firm.

The relative strength strategy is NOT a guarantee. There may be times where all investments and strategies are unfavorable and depreciate in value. Each investor should carefully consider the investment objectives, risks and expenses of any Exchange-Traded Fund (“ETF”) prior to investing. Before investing in an ETF investors should obtain and carefully read the relevant prospectus and documents the issuer has filed with the SEC. ETFs may result in the layering of fees as ETFs impose their own advisory and other fees.

There are risks inherent in international investments, which may make such investments unsuitable for certain clients. These include, for example, economic, political, currency exchange, rate fluctuations, and limited availability of information on international securities.

Back-tested performance is hypothetical and is provided for informational purposes to illustrate the effects of the strategy during a specific period. The hypothetical returns have been developed and tested by DWA, but have not been verified by any third party and are unaudited. Back-testing performance differs from actual performance because it is achieved through retroactive application of a model investment methodology designed with the benefit of hindsight. Model performance data (both back tested and live) does not represent the impact of material economic and market factors might have on an investment advisor’s decision making process if the advisor were actually managing client money.

Past performance does not guarantee future results. In all securities trading, there is a potential for loss as well as profit. It should not be assumed that recommendations made in the future will be profitable or will equal the performance as shown. Investors should have long-term financial objectives when working with Nasdaq Dorsey, Wright & Associates. Investors cannot invest directly in an Index.